Business

China decides to finish off microchip production

China decides to finish off microchip production

suspected its largest microchip manufacturers of speculation. So the authorities decided to finish off the deficit-stricken sector — after the statement on August 6 the company was expected to on the stock exchange, writes Bloomberg.

The authorities accused automobile chip distributors of “malicious” overpricing and called for discipline from the companies. Amid a global chip shortage that has lasted almost 12 months, quotes from Chinese semiconductor manufacturers have risen almost continuously — so the pressure from Chinese regulators has become another challenge for investors.

On Monday on the Hong Kong Stock Exchange, shares of China’s largest chipmaker, Semiconductor Manufacturing International, fell five percent to $3.4 apiece, while securities of smaller Hua Hong Semiconductor fell 5.7 percent to $6.6. Shares of Will Semiconductor fell by the same 5.7 percent on the Shanghai mainland exchange to nearly $50, and securities of Hubei Tech Semiconductors fell 3.3 percent to $4.4 apiece.

The crackdown by the Chinese authorities has forced investors to choose more carefully the areas in which to invest.



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