China-based casting company HSMC went bankrupt. HSMC could no longer endure the embargoes imposed by the US.
The bad end for casting company HSMC
The embargoes imposed by the USA on China-based producers have caused new ways to be drawn in the relations between major producers. With these embargoes, small producers are on the brink of bankruptcy.
The Chinese-based manufacturer HSMC was known in the market as the Chinese version of the giant casting company TSMC. Even the Chinese government was seen among the promising companies of the country. Establishing 14nm and 7nm manufacturing facilities, HSMC continued to work with a loan of 20 billion dollars and the support of many investors. However, the embargoes imposed by the US government on China brought a bad end for the company.
Many companies, fearing the embargo, turned to companies that are much less likely to experience problems, such as TSMC and Samsung. This put the Chinese casting companies in a very difficult situation. HSMC, one of the important producers in this field, could not provide sufficient finance and stopped its operations. With bankruptcy, HSMC was transferred to the Hubei state administration. With the bankruptcy of HSMC, China has weakened considerably in this area.