Chinese tech stocks dived on Monday morning in Asia following the news that the country’s state semiconductor fund will reduce stakes in the tech companies.Shenzhen Goodix Technology’s stock price fell 4.5%, while stock prices of Hunan Goke Microelectronics plunged 9.51% and Gigadevice Semiconductor dropped 7.01%.
Known as the “Big Fund”, the National Integrated Circuitry Investment Fund planned to partially divest in these tech companies by no more than one percentage point each. These three companies are pominent players in China’s semiconductor industry. The state fund currently holds 15.63% in Goke, 6.63% in Goodix, and 9.72% in Gigadevice.
The move came after the three companies made great gains this year. Goke, Goodix and Gigadevice’s stock prices have surged 93%, 161% and 214% this year. This special national industry investment fund was set up in 2014 with an aim to boost the semiconductor industry by investing in chip manufacturing and designing, as China is striving for tech self-sufficiency amid tighter U.S. scrutiny of Chinese tech firms.
China’s economy is expanding at its weakest rate in nearly 30 years and could face more downward pressure next year, but the government has vowed to keep growth within a reasonable range in 2020 and keep policies forward-looking and effective.
Import tariffs on multi-component semiconductors will be cut to zero.
https://www.reuters.com/article/us-china-economy-imports-idUSKBN1YR02Z
Arm China, the Chinese subsidiary of the British chip company owned by Japan’s SoftBank, has become a key player in Beijing’s quest for tech self-sufficiency and, in a move likely to alarm the U.S., has developed codes that enable Chinese semiconductors to run state-approved cryptographic algorithms, the Nikkei Asian Review has learned.
Huawei, the Chinese telecom gear maker that Washington has accused of spying, is among the company’s biggest customers after Arm China took over the Chinese business of its larger U.K parent last year.
“The goal of Arm China is to help all Chinese chip developers and other product makers to use Chinese-controlled technologies — not only for the domestic market but for global markets,” said William Liu, Arm China’s vice president of product development.
“In the future, these China-developed technologies could even become world leaders and have a say on the global stage,” he added.
https://www.digitalmunition.me/beijings-latest-tech-ally-in-us-clampdown-arm-china/