Chinese chip stocks surged on Wednesday following the launch of Huawei Technologies’ new Mate 60 Pro phone. Investors speculated that the phone could be equipped with a 5G capable chip, which would be a significant win for China’s local semiconductor sector. Since 2019, Huawei has been restricted from purchasing advanced chips and software from US companies, severely impacting its consumer electronics business. However, research firms believe that Huawei is planning a comeback in the 5G smartphone industry by procuring chips domestically. The company began selling the Mate 60 Pro on Tuesday, with online users posting videos claiming that the phone matched the network speeds of 5G chipset phones. The launch of the Mate 60 Pro coincided with US Commerce Secretary Gina Raimondo’s visit to China, where she stated that the US had rejected a Chinese request to reduce export controls on technology. The chip shares in China’s semiconductor sector jumped more than 2.5% on Wednesday, with Huawei’s website indicating that the phones were selling fast. However, Huawei declined to comment on whether the phone was 5G capable.
How has the launch of Huawei’s Mate 60 Pro phone impacted China’s chip stocks and semiconductor sector?
Excitement Soars in Chinese Chip Stocks as Huawei’s New Mate 60 Pro Phone Hits the Market
Chinese chip stocks experienced a remarkable surge on Wednesday as Huawei Technologies launched its highly anticipated Mate 60 Pro phone. Investors eagerly speculated about the possibility of the phone being equipped with a groundbreaking 5G capable chip, which could signal a major triumph for China’s local semiconductor sector.
Ever since 2019, Huawei has encountered significant obstacles in purchasing advanced chips and software from US companies, greatly impacting its consumer electronics business. However, research firms suggest that Huawei is determined to make a comeback in the 5G smartphone industry by sourcing chips domestically. To the delight of eager consumers, the company introduced the Mate 60 Pro for sale on Tuesday, instantly attracting attention. Online users swiftly shared videos claiming that the phone matched the lightning-fast network speeds typically associated with 5G-enabled chipset phones.
In an interesting twist of events, the launch of the Mate 60 Pro coincided with the visit of US Commerce Secretary Gina Raimondo to China. During her visit, Raimondo boldly declared that the US had rejected a Chinese request to ease export controls on technology. This juxtaposition between the high-stakes diplomatic negotiations and the innovative smartphone release only added to the excitement surrounding the Mate 60 Pro.
Following this release, chip shares in China’s semiconductor sector soared by over 2.5% on Wednesday, indicating the high level of confidence in Huawei’s latest offering. To further elate investors, Huawei’s website demonstrated that the Mate 60 Pro was swiftly emerging as a hot selling item. However, when questioned about the much-anticipated 5G capabilities of the phone, Huawei preferred to remain tight-lipped, leaving eager consumers even more intrigued.
Overall, the launch of the Mate 60 Pro has not only revitalized China’s chip stocks but has also revitalized hope in the nation’s semiconductor industry. As Huawei sets its sights on procuring chips locally, the future of China’s tech sector promises to be vibrant and fiercely competitive.
