Chinese semiconductor companies continue to rally on expectation of faster growth
Chinese semiconductor companies continue to rally on expectation of faster growth

Chinese semiconductor companies continue to rally on expectation of faster growth

 

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Shares of semiconductor companies continue to rally on Friday, with an index tracking mainland-listed chipmakers compiled by Wind Information surging by 3.2% at the close of morning session, making it one the best-performing sectors in the A-share market, compared to 0.3% gain for the Shanghai Composite Index.

In Hong Kong, Hua Hong Semiconductor is surging 6.4%, ASM Pacific Technology up 3.2% and China’s top chipmaker SMIC up 2.2%.

President Joe Biden is set to sign into law a bipartisan bill to invest billions of dollars in domestic semiconductor manufacturing and science research, with the aim of boosting US competitiveness with China and other foreign rivals. The development in the US may accelerate the reshaping of the global semiconductor supply chain and push China’s domestic semiconductor’s supply chain to develop at a faster pace, China International Capital Corporation (CICC) said in a note.

Guohai Securities said in a note that high-end chips including those for new energy vehicles, solar power equipment, wind power equipments are still in shortage, and in the first quarter of the year, sales of global semiconductor equipments rose 4.75% from a year earlier, while semiconductor equipment sales in mainland China surged 27%, indicating robust demand in mainland China.

Chinese chipmaker Yangtze Memory Technologies Co Ltd (YMTC) announced new memory chip technology that would help it catch up with rivals Micron and SK Hynix. The company unveiled its fourth-generation 3D NAND chip, the X3-9070, and its first to feature 232 layers of memory cells, the state-backed media outlet Global Times reported. That places it close to rival Micron, which last month said it aimed to start mass production of its 232 layer chip by the end of the year. South Korea’s SK Hynix has also developed its first 238-layer memory chip, boasting a new industry benchmark.Â