BEIJING (Reuters) – Shares in several Chinese companies linked to the semiconductor industry rose on Wednesday, boosted by investor enthusiasm over a government listing that some interpret as a sign of progress in China's efforts to develop domestic chipmaking technology.
Both Shanghai Zhangjiang Hi-Tech Park Development and Shanghai Highly Group hit their daily gain limit of 10% at market close. Sanhe Tongfei Refrigeration, which has a wider trading band, hit its daily limit of 20%.
Shenyang Blue Silver Industry Automation Equipment closed the day up 10.7%.
The increase comes after China's Ministry of Industry and Information Technology (MIIT) on Sept. 9 released a guide promoting the use of important domestic technical equipment.
The MIIT guide specifically mentioned two models of lithography machines and recommended their use by state-linked organizations.
Chip-making tools have become a central focus of China’s drive to develop its semiconductor industry. The sector has faced significant challenges due to restrictions imposed by the United States and its allies on the export of advanced equipment to China, part of ongoing efforts to limit Beijing’s technological advancement.
ASML, a Dutch company and one of the world's few manufacturers of advanced lithography machines, has been banned from selling its most sophisticated equipment to China.
Chinese companies, including Shanghai Micro Electronics Equipment (SMEE), have been actively developing domestic lithography capabilities.
However, industry experts say progress has been limited, underscoring the technological challenges facing China in this sector.
The more advanced of the two lithography machines listed, for which MIIT did not specify a supplier, has a resolution of 65 nanometers or better.
Resolution determines the size of features that can be achieved on a semiconductor chip. Smaller resolutions allow for more advanced and powerful chips.
For comparison, ASML's most advanced lithography machines currently achieve resolutions of 8 nanometers and below.
The 65-nanometer resolution machine mentioned in the MIIT list is at least 15 years behind its international competitors, according to Leslie Wu, executive director of consulting firm RHCC.
(Reporting by Beijing editorial staff; editing by Keith Weir)
