Chinese chip-related stocks experienced significant gains following the announcement of a breakthrough in homegrown semiconductor manufacturing equipment, a critical step in mitigating U.S. sanctions. Changchun UP Optotech Co. saw its shares surge to the daily limit of 10%, while Sai Micro Electronics Inc. rose by 5.3%. Semiconductor Manufacturing International Corp. and Naura Technology Group Ltd. also saw increases of 1.9% and nearly 1%, respectively.
This surge reflects investor optimism regarding China’s ability to navigate U.S. export restrictions on essential chip-making tools, which have been a major obstacle in its semiconductor goals. The Ministry of Industry and Information Technology recently advised state-linked organizations to utilize a new laser-based immersion lithography machine capable of producing chips at a resolution of 65 nanometers or better. Although the supplier was not disclosed, this represents a significant advancement over the previous most-advanced equipment developed by Shanghai Micro Electronics Equipment Group, which had a resolution of around 90nm.
As companies like SMEE strive to compete with established suppliers like ASML Holding NV, which are currently restricted from shipping to China, the advancements noted by MIIT indicate that domestic firms are making progress in developing sophisticated semiconductor machinery, though much work remains to fully close the technology gap.
Related topic: