China Chip Firms Soar on Report of Advance in Fabrication Tech

Chinese chipmaking machine suppliers surged on Wednesday following a media report that a state-backed firm made a significant technological breakthrough, spurring hopes the country can lessen its reliance on US semiconductor techniques.

Shanghai Micro Electronics Equipment Group, the Chinese leader in so-called lithography gear that’s been blacklisted by the US, is working to deliver its first system based on 28-nanometer technology later this year, local newspaper Securities Daily reported on Monday, citing an unnamed source. Optical components maker Mloptic Corp. gained as much as 15%, while peers Kingsemi Co. and Castech Inc. each advanced around 5% on Wednesday morning.