Semiconductor Manufacturing International Corp. (SMIC), China’s largest computer chipmaker, has been caught in the escalating China-U.S. tech war as it was hit by U.S. trade restrictions limiting access to American suppliers. Some SMIC suppliers received letters from the U.S. Bureau of Industry and Security (BIS) telling them that exports to the Chinese company are subject to additional export restrictions. The Shanghai-based SMIC said it is evaluating the impact of the curbs and warned of adverse effects on its production amid supply uncertainties. SMIC’s Hong Kong-traded shares fell more than 5% Monday. The curbs threaten sales to American customers as well as to Chinese telecom giant Huawei Technologies Co. 

(Comment: The sanctions are likely to hobble the company’s efforts to catch up with the technological capabilities of the world’s most advanced chipmakers.)