A congressional visit to Taiwan by House Speaker Nancy Pelosi last week heightened tensions between the US and Beijing, causing shares of Chinese chipmakers to jump by the most in two years.
The news comes on the heels of the US Senate’s "Chips and Science" Act, passed on July 27, that guarantees $52 billion in subsidies for US semiconductor manufacturers.
Albeit the chips act significantly hinders the use of US technologies in China, industry experts perceive the restriction as a positive development for local Chinese manufacturers.
Per reports, China's semiconductor index grew by 6.8%, indicating a four-month high, and the best weekly performance since mid-2020.
"Domestic chipmakers will have huge opportunities to replace imported products," said Niu Chunbao, director of investment at private fund house Wanji Asset.
Corroborating the trend are Shenzhen China Micro Semicon’s shares that skyrocketed to 82% on their first day of trading in Shanghai, despite weaker recent stock market debuts.
Similarly, Chinese chipmaking giant Semiconductor Manufacturing International Corp’s shares jumped 7.1% in Hong Kong and 4.4% in Shanghai.
Despite the burgeoning growth, concerns remain as to whether China can withstand inflation and recession’s negative impact on the chip-making industry. As matters stand, chips remain the priciest sector in China's stock market.
Should AI PCs be part of your next hardware refresh?
Westcon-Comstor and Vectra AI launch brace of new channel initiatives
