Shares of Chinese companies went up after US authorities initiated an investigation into the origin of the 7nm Kirin 9000S chip in Huawei smartphones

The US Department of Commerce wants to investigate the origin of the Kirin 9000S processor. Because of this, the shares of some companies have risen sharply.

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Huawei within two weeks announced at once four smartphones that are equipped with a chip made using 7 nm technology. The company introduced the Mate 60, Mate 60 Pro, Mate 60 Pro+ and Mate X5 models.

Congressmen believe that SMIC may have manufactured the chip using US technology, thus violating sanctions. The U.S. Department of Commerce initiated an investigation to determine the structure and origin of the processor.

This has led to increased faith on the part of investors in the Chinese semiconductor industry. Companies that produce chip-making equipment have shown a sharp rise.

Shares of Shenyang Blue Silver Industry Automatic Equipment Co. rose about 20 per cent to a two-year high. Securities of Shanghai Electric Group Co. rose 10 per cent and the share price of Mloptic Corp. rose 9 per cent.

The Kirin 9000S and the investigation surrounding it raises questions about the effectiveness of U.S. sanctions aimed at curbing China's access to advanced technology.

Source: Bloomberg