Chinese chip stocks rise as Beijing probes US subsidies and dumping practices By Investing.com
Investing.com– Chinese semiconductor stocks rallied on Friday after Beijing announced an investigation into U.S. government subsidies and the potential dumping of cheaper chips into the Chinese market.
The Commerce Department’s investigation aims to assess whether these US practices are undermining China’s domestic chip industry.
China’s leading chipmakers have seen significant stock movements.
Shares in Hong Kong-listed Semiconductor Manufacturing International Corp (HK: ) rose nearly 11% to HK$38.90, reflecting investor optimism about the potential benefits of government safeguards for local chipmakers.
Hua Hong Semiconductor Ltd (HK: ) Shares jumped 8.2% in Hong Kong trading, boosted by expectations of a more level playing field as a result of the investigation.
On the Shanghai list Will Semiconductor Co Ltd Shanghai (SS:) gained 2%, while Shenzhen-listed NAURA Technology Group Co Ltd (SZ:) rose 1%.
In contrast, chip stocks outside China were lower as manufacturing industry groups criticized the Joe Biden administration’s new export controls, saying they were implemented without sufficient consultation.
That came despite Taiwan Semiconductor Manufacturing (NYSE: ) ( TSMC ) reporting a 57% rise in net profit in the fourth quarter, driven by strong demand for artificial intelligence-related hardware.
In the US, major chipmakers such as NVIDIA Corporation (NASDAQ: ) and Intel Corporation (NASDAQ: ) closed lower on Thursday.
China’s interaction underscores the growing technological rivalry between the two nations.
