HK-listed Chinese chip stocks jump as Trump tariffs spark local demand hopes

Published 03/02/2025, 07:06
© Reuters

Investing.com-- Hong Kong-listed semiconductor stocks jumped on Monday as investors anticipated increased local demand following the U.S. administration’s imposition of new tariffs on key trading partners.

President Donald Trump announced a 25% tariff on imports from Mexico and Canada, along with a 10% levy on Chinese goods, set to take effect on Tuesday.

The tariffs are expected to disrupt global supply chains, particularly in the technology sector, where China and Mexico play key roles in semiconductor manufacturing and assembly.

With higher costs for U.S. firms sourcing chips from these regions, investors speculate that Chinese and Hong Kong-listed semiconductor companies may benefit from a shift in demand toward local alternatives.

Leading the surge, Semiconductor Manufacturing International Corp (HK:0981) (SMIC) saw its shares rise nearly 8% to HK$81.

Similarly, ASM Pacific Technology (HK:0522)stock rose 2%, while Solomon Systech International (HK:2878) shares gained 3.2%.

The jump was despite the weakness in the broader Hang Seng index, declining 1.8%, as worries over trade uncertainties and rising inflation weighed on sentiment.

In a related development, Chinese startup DeepSeek has garnered significant attention with the launch of its latest AI models, which it claims are on par with or superior to industry-leading models in the U.S., achieved at a fraction of the cost. This advancement has the potential to further stimulate local demand for semiconductors, as domestic AI applications expand.

Analysts suggest that U.S. restrictions on Chinese chipmakers, combined with the latest tariff escalation, could accelerate China’s push for self-sufficiency in semiconductor production. Market watchers also point to the potential for retaliatory measures from Beijing, which could further reshape the global semiconductor landscape.

 

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