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Chinese Auto-Chip Stocks Fall After Official Probe Into Pricing

  • Leading chip developers plunge by daily trading limit
  • Chinese automakers import about 90% of chips they require
Photographer: Olivier Matthys/Bloomberg
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Chinese automobile-chip maker stocks tumbled after the government launched a probe into possible price manipulation, putting a brake on share surges buoyed by a global semiconductor shortage that’s approaching the 12-month mark.

Chip developers GigaDevice Semiconductor (Beijing) Inc., Wuxi NCE Power Co. and Hangzhou Lion Electronics Co. plunged by their 10% daily trading limit in Shanghai on Tuesday after China’s market regulator said it’s looking into some auto-chip sellers over allegationsBloomberg Terminal of price misconduct. Some Asian chip stocksBloomberg Terminal outside of China tied to the auto industry also fell.