Investing.com– Chinese semiconductor stocks rallied on Friday following Beijing’s announcement of an investigation into U.S. government subsidies and potential dumping of lower-end chips into the Chinese market.
The Ministry of Commerce’s probe aims to assess whether these U.S. practices are undermining China’s domestic chip industry.
Leading Chinese chipmakers experienced notable stock movements.
Hong Kong-listed shares of Semiconductor Manufacturing International Corp (HK:0981) surged nearly 11% to HK$38.90, reflecting investor optimism about the potential benefits of the government’s protective measures for local chipmakers.
Hua Hong Semiconductor Ltd (HK:1347) stock jumped 8.2% in Hong Kong trading, buoyed by expectations of a more level playing field resulting from the investigation.
Shanghai-listed Will Semiconductor Co Ltd Shanghai (SS:603501) gained 2%, while Shenzhen-listed NAURA Technology Group Co Ltd (SZ:002371) rose 1%.
In contrast chip stocks outside China were lower as manufacturing industry groups criticized the Joe Biden administration’s new export controls, arguing they were implemented without sufficient consultation.
This was despite Taiwan Semiconductor Manufacturing (NYSE:TSM) (TSMC) reporting a 57% surge in fourth-quarter net profit, driven by strong demand for AI-related hardware.
In the U.S. major chipmakers like NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) closed lower on Thursday.
China’s reciprocal action underscores the intensifying technological rivalry between the two nations.