Chinese semiconductor stocks stage a strong rally after the authorities pledged to initiate investigations into low-prices mature process chips from the US will be launched in according with the law.
China’s top chipmaker SMIC surged more than 10% to hit a high of HK$39.8, Hua Hong Semiconductor jumping more than 8% to hit HK$25.15, Shanghai Fudan jumping more than 6% to hti HK$15.2.
In the A-share market, an index tracking the semiconductor sector compiled by Wind Information is surging more than 2%, making it one of the best-performing sector in the market.
The rally comes after China’s Ministry of Commerce said on Thursday that it will initiate investigations into low-priced US mature process chips in accordance with the law.
The Biden administration has been providing substantial subsidies to the US chip industry, giving US companies an unfair competitive advantage, and this has led to low-priced exports of mature process chips to China, harming the legitimate interests of the domestic industry, the ministry said.
The comments came in response to a media question regarding Chinese mature process chip sector’s concerns about unfair competition caused by low-priced imports from the US and its requests for anti-dumping and anti-subsidy investigations.
The concerns of China’s domestic industry are valid, and they have the right to file requests for trade remedy investigations, it said.
On the same day, the China Semiconductor Industry Association said that Chinese domestic semiconductor companies and foreign semiconductor firms operating in China are encouraged to safeguard legitimate rights and interests in accordance with WTO rules.
“The stable development of the semiconductor industry depends on a fair competitive market environment. We firmly support both domestic and foreign semiconductor companies operating in China, and, in accordance with WTO rules, we will actively protect their legal rights,” it said.
