Global Market: Chinese AI and chip stocks rally after Huawei signals major tech leap
Shares of Semiconductor Manufacturing International Corp. and Hua Hong Semiconductor Ltd. surged more than 16% as trading resumed following a market holiday. On the mainland, chip-related counters had already gained momentum after a Huawei executive revealed at an industry conference that the company plans to begin producing 1.4-nanometer chips by 2031 using its proprietary “LogicFolding” technology.
According to Bloomberg, the proposed manufacturing process could help Chinese semiconductor firms reduce the technology gap with global leaders such as Taiwan Semiconductor Manufacturing Co. The development is also being viewed as strategically important for China’s artificial intelligence ambitions, especially as US restrictions continue to limit the country’s access to advanced processors from Nvidia Corp..
Huawei’s chip research team, led by He Tingbo, has proposed a new time-scaling approach designed to improve transistor data transmission speeds. The method differs from the traditional semiconductor industry focus under Moore’s Law, which emphasizes shrinking transistor sizes to pack more components onto chips.
Analysts believe the technology, if successfully commercialized, could potentially reduce reliance on cutting-edge chipmaking equipment supplied by ASML Holding NV. Bloomberg noted that this may enable Chinese firms to accelerate product launches while lowering production costs.
The broader rally extended to other Chinese semiconductor firms listed in Hong Kong. GigaDevice Semiconductor Inc. climbed as much as 12%, while Montage Technology Co. gained around 6%.
Despite the excitement, market experts cautioned that LogicFolding technology remains unproven at scale. Bloomberg reported that a key test will come later this year when Huawei launches Kirin mobile chips expected to be manufactured using the new process.Huawei has emerged as a central figure in China’s push for technological self-reliance amid years of tightening US-led export restrictions targeting advanced semiconductor technologies. Investors increasingly see domestic innovation as critical for China’s long-term competitiveness in artificial intelligence and high-performance computing.
