Shares of China’s top chipmaker, Semiconductor Manufacturing International Corporation, tumbled on Wednesday after news emerged that its co-chief executive had abruptly quit.

Trading of SMIC’s stocks in Hong Kong was halted in the morning as the company sought to verify the intention of co-chief executive Liang Mong-song to leave.

When trading resumed in the afternoon, the share price fell by nearly 10% from the previous close of HK$21.25 (US$2.74).

In Shanghai, where the company is also listed, the SMIC stock slumped 9.8% at one point in the morning before closing at 55.20 yuan (US$8.44), down 5%.

A decision to hire Chiang Shang-yi, former co-chief operating officer of Taiwan Semiconductor Manufacturing Corporation, was apparently the main trigger for Liang’s proposed departure, according to a document purported to be his resignation letter and circulating on the internet.

Liang joined SMIC in 2017 and was seen as an important figure in advancing the company’s technology in chipmaking. According to the letter, he allegedly felt disrespected over the company’s failure to inform him prior to the decision to hire Chiang.

It is understood that SMIC’s chairperson, Zhou Zixue, has yet to approve Liang’s resignation.

Frederick Wong, eFusion’s founder and chief investment officer, said it was unlikely that approval would be given.

“SMIC is not any regular company,” he said, referring to SMIC’s nature of being partially state-owned and its role in national ambitions to become self-sufficient in semiconductor manufacturing. “His departure is not a personal matter,” he said.

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