AMEC Shares Rise After Pentagon Removes Military Designation

Investing.com — Advanced Micro-Fabrication Equipment (AMEC), a prominent chip equipment manufacturer in China, saw its shares rise by 4.35% on Wednesday following the Pentagon's decision to remove it from a list of Chinese companies allegedly collaborating with Beijing's military.

In February, AMEC was included in Washington's "Entities Identified as Chinese Military Companies Operating in the United States" list. This designation prompted the company to file a federal lawsuit against the U.S. Defense Department in August.

AMEC, seeking a court order to eliminate the designation, asserted that it has never engaged in military activities and strictly complies with all laws and regulations.

The U.S. Defense Department updated the list to exclude AMEC and IDG Capital, a leading venture capital and private equity firm in China. This updated list, containing dozens of companies, was released on Wednesday.

The list includes entities targeted by U.S. trade sanctions in recent years, such as Huawei Technologies and the state-owned Aviation Industry Corporation of China (AVIC).

IDG Capital, also included in the February list, did not pursue legal action but has previously asserted its lack of connections to the Chinese military, arguing against its inclusion on the list.

While being listed does not lead to immediate prohibitions, it can damage the reputations of affected companies and serve as a cautionary sign to U.S. entities regarding potential risks in dealings with these firms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.