From Investing.com: 2024-11-11 02:45:40

China’s semiconductor index surged to a three-year high on Monday following a U.S. order halting Taiwan Semiconductor Manufacturing Co’s shipments of advanced chips to Chinese customers. TSMC will suspend certain chip shipments to Chinese clients after export restrictions were imposed by the U.S. Department of Commerce. This move could benefit China’s domestic chipmaking sector, leading to a reorganization of the supply chain and technological breakthroughs.

The CSI Semiconductor Index and CSI Integrated Circuits Index both saw significant gains, with SMIC, China’s largest foundry, rising over 4%. Several Chinese technology firms have been designing their own advanced processors in response to U.S. sanctions on Huawei and restrictions on chip sales to China. TSMC, the world’s leading contract chipmaker, is a key production partner for many Chinese companies.

The U.S. imposed export restrictions on TSMC chips with 7 nanometer or more advanced designs, impacting Chinese firms reliant on the company for chip production. SMIC, the only foundry in China capable of producing such advanced chips, has faced challenges in ramping up production due to U.S. export controls. The company has prioritized AI chip production for Huawei over smartphone chips.



Read more at Investing.com: China chip index nears 3-year high as TSMC order fuels self-reliance bets By Reuters