(Bloomberg) -- Chinese chip-related stocks jumped after the nation claimed a breakthrough in the development of homegrown semiconductor-making equipment, a step in overcoming US sanctions.
Changchun UP Optotech Co. gained by the daily 10% limit, while Sai Micro Electronics Inc. climbed as much as 5.3%. Semiconductor Manufacturing International Corp. rose as much as 1.9% and Naura Technology Group Ltd. less than 1%.
The gains suggest investors are optimistic China is making progress working around US export curbs on essential chip equipment. Such gear is one of the key bottlenecks in China’s semiconductor ambitions.
State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Ministry of Industry and Information Technology said in an announcement this month. Though the note doesn’t specify the supplier, the spec marks a significant step up from the previous most-advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co. — which stood at around 90nm.
Companies like SMEE are racing to develop machines that can close the gap with suppliers like ASML Holding NV, which are now barred from shipping to China. The advances claimed by MIIT suggest that homegrown rivals are starting to make headway in developing more sophisticated machines, though SMEE and its peers have a long way to go to catch the likes of ASML.
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