Chinese chip-making machine suppliers surged on Wednesday following a media report that a state-backed firm made a significant technological breakthrough, spurring hopes the country can lessen its reliance on US semiconductor techniques.
Shanghai Micro Electronics Equipment Group, the Chinese leader in so-called lithography gear that’s been blacklisted by the US, is working to deliver its first system based on 28-nanometre technology later this year, local newspaper Securities Daily reported on Monday, citing an unnamed source. Optical components maker Mloptic gained as much as 15%, while peers Kingsemi and Castech each advanced around 5% on Wednesday morning.
Beijing has pushed its firms for years to develop local technologies in sectors it deems of strategic importance, particularly those that Washington is targeting to contain its rival. Chip-making gear is regarded as among the weakest links in China’s semiconductor supply chain, an area currently dominated by firms including ASML Holding and Tokyo Electron. The country’s top chip makers, including Semiconductor Manufacturing International and Hua Hong Semiconductor, all rely on foreign-made equipment.
Chinese chips
ASML is the global leader in lithography machines, and gear that can support 28nm chips is essential to making silicon for a spectrum of products from electric cars to missiles. The Netherlands, home to ASML, has joined a US-led effort to curb Beijing’s chip ambitions by banning the Dutch supplier from selling advanced chip-making machines to China.
It’s unclear whether the Shanghai firm can deliver such machines in bulk. The original article about its breakthrough wasn’t accessible on Wednesday but had since been widely reposted by other outlets including the official Xinhua News Agency. — (c) 2023 Bloomberg LP
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