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(Yicai Global) June 27 -- Shares of Dawning Information Industry, which used to mostly buy its chips from Intel, have slumped after the Chinese supercomputer maker confirmed that being placed on the US entity list will impact its financial performance this year.
Dawning's [SHA: 603019] stock price fell by the daily limit of 10 percent to CNY36.5 (USD5.30) today, after coming back from a three-day trading suspension.
The US ban on Dawning will have certain effects on this year's operating income and the following business layout, the Beijing-based firm said in a statement yesterday. Dawning has been buying 60 percent of its semiconductors from California's Intel, and a halt will inevitably push China to speed up its chip development, the release added, citing Guosheng Securities.
On June 24, the US added Dawning and four other Chinese supercomputer companies to its entity list due to national security concerns. This means that the firms need the US government's permission to do business with US companies.
The US decision lacks factual basis and is not in the interest of all parties, Dawning said. The firm will actively communicate to advance understanding and to reduce the impact of the incident, it added.
Founded in 1996, Dawning develops high-performance computers and servers, as well as cloud computing and Big Data products.
Editor: Emmi Laine