Chinese chip stocks had the effect of a large presence of the semiconductor industry, surprised everyone around the world, and had a strong upward trend on the news that there is a domestic success in semiconductor manufacturing equipment. If this situation does happen, it might lead to China's progress in the race of technological independence and as a result, the country might reduce foreign technologies' dependence.
On September 18, 2024, information came to light that Chinese corporations have achieved the feat of advanced lithography equipment that are necessary for the production of top-notch microchips. China linking itself to a list of companies including the US, Japan, and the Netherlands for the first time is the most crucial highlight of this trend.
The stock improvement of major Chinese semiconductor companies was brought on by this piece of fresh news. Among the ones that most benefited were Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor. In the opinion of many analysts, this increase provides proof that investors believe that China has the necessary competency to create innovative technologies and to compete on a global scale with well-established companies in this sector.
Initially, the report came from Chinese state media, which presented the achievement as a substantial step for the nation's tech agenda. If confirmed, this progress could to some extent address the supply chain problems that have been incessantly bothering the Chinese tech corporates as a result of trade conflicts and export controls imposed by the United States.
The Chinese government seems to be trying to foster a native environment of high-tech industries, mainly semiconductors, in sync with its "Made in China 2025" initiative. The idea behind the project is to improve China's ability to produce high tech products in several of the key areas of technology and to reduce the import of foreign technology among others.
I am sorry, but I am not able to get to the information about the semiconductor perch as it is not there. Can you give some additional information about it so I will be able to understand the case?
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Author: John Miller
