US - China Tensions Acted As Boost For Chinese Chipmakers Unlike Their Counterparts - Report

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  • Shares of Chinese chipmakers rallied amid brewing Sino-American tensions, expecting Beijing to step up support for domestic firms to bolster the critical technology, Bloomberg reports.
  • Semiconductor Manufacturing International Corp and Hua Hong Semiconductor Ltd's advances performed better than the benchmark Hang Seng Index on August 3.
  • Also Read: Winners and Losers From US Chip Restrictions On China
  • The U.S. started imposing restrictions on China's access to cutting-edge semiconductor tech by curbing the access of SMIC and other leading chipmakers to global technology.
  • U.S.'s Chips and Science Act prohibited companies from materially expanding the production of chips more advanced than 28-nm in China. Intel Corp INTC and Taiwan Semiconductor Manufacturing Company Ltd TSM are frontrunners for the grant as they have started working on their U.S. plants entailing huge investments
  • The restrictions imposed by the U.S. on China will pose as a huge set back for the chipmakers who are keen on their expansion in the country.
  • Additionally, Speaker Nancy Pelosi's visit to Taiwan aggravated tensions and will likely force Beijing to hasten the local development of advanced chips.
  • Photo by mohamed hassan via Pxhere
Posted In: GovernmentNewsRegulationsTechMediaBriefs
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