Chinese chipmaking stocks rallied on Monday after Huawei reported a breakthrough in advanced chip design, boosting optimism over China’s semiconductor self-sufficiency amid ongoing U.S. sanctions.
Huawei said it expects its high-end chips to achieve transistor density equivalent to 1.4-nanometre processes within five years, unveiling a new “Tau Scaling Law” focused on improving chip performance through system efficiency rather than relying solely on smaller transistors.
The company also introduced a “LogicFolding” architecture, expected to debut in upcoming Kirin chips later this year, which it said would significantly improve performance by shortening internal chip wiring.
Shanghai-listed shares of Semiconductor Manufacturing International Co (SS:688981) surged more than 17%.
Cambricon Technologies (SS:688256) shares jumped nearly 10%, while Piotech Inc (SS:688072) tacked on over 18%.
Hwatsing Technology (SS:688120) advanced 8%, while Shenzhen Fastprint Circuit Tech (SZ:002436) added 6% and Qingdao Yunlu Advanced Materials Technology (SS:688190) jumped 9%.
Investor sentiment toward China’s semiconductor sector has strengthened in recent months as domestic firms seek alternatives to U.S. chipmaker NVIDIA Corporation (NASDAQ:NVDA) following tighter export restrictions on advanced AI processors.
Huawei’s Ascend AI chips have increasingly emerged as a key domestic alternative for Chinese AI developers, including DeepSeek.
