China chip stocks rally after Huawei's low-key launch of new Mate 60 Pro phone
CHINESE chip stocks rallied on Wednesday (Aug 30), following Huawei Technologies’ launch of its new Mate 60 Pro phone, as investors speculated it could be using a 5G capable chip which, if true, would be a win for China’s local semiconductor sector.
Since 2019, Washington has restricted Huawei from buying advanced chips and software from US companies, which has decimated its consumer electronics business and left it only able to launch limited batches of 5G models using stockpiled chips.
But research firms told Reuters last month that they believed Huawei was plotting a return to the 5G smartphone industry by procuring chips domestically, using its own advances in semiconductor design tools along with chip making from Semiconductor Manufacturing International Co (SMIC). Huawei declined to comment at the time.
On Tuesday, the company began selling its Mate 60 Pro around midday for 6,999 yuan (S$1,299) in an unusually low-key fashion, having given no advance notice or conducted advertising. Staff at Huawei and sales personnel at stores in Beijing and Shenzhen also told Reuters they were caught off-guard.
The specifications provided for the Mate 60 advertised its ability to make satellite calls, but provided no information on the power of the chipset inside.
Still, online users who managed to purchase the phone began posting videos of themselves conducting tests that they said showed it could match the network speeds of 5G chipset phones as well as screenshots saying it used a Kirin 9000s chip. Reuters was unable to verify these claims.
The phone’s launch also rose to be the No 1 most searched subject on Weibo, China’s version of X, on Wednesday, with excited netizens saying the launch marked the overcoming of US restrictions.
In an indication that the phones were selling fast, Huawei’s website said on Wednesday afternoon that buyers would be able to receive their phones only on Sep 17 at the earliest.
Huawei, whose woes with Washington have become a key flashpoint in US-China relations, declined to comment on whether the phone was 5G capable, but said in a statement the Mate 60 series was its most powerful Mate model ever.
SEE ALSO
The launch of the Mate 60 Pro also coincided with US Commerce Secretary Gina Raimondo’s visit to China. On Tuesday, she said the US had rejected a Chinese request to reduce export controls on technology.
Chip shares jump
China’s semiconductor sector jumped more than 2.5 per cent on Wednesday, sending weekly gains to roughly 8 per cent. China’s SMIC is up roughly 10 per cent for the week.
Retail investor Lu Deyong said he bought shares in semiconductor firm Sai MicroElectronics Inc, which has business connections with Huawei, and the tech-focused STAR 50 Index, following the launch of the new Huawei phone.
“Shares rose and I saw that large sums of money flowed in, which showed very good attitude toward the launch and the technology behind it,” he said. “I cannot confirm if the technology is authentic, but I hope it is.”
Nicole Peng, senior cive-president of Mobility at Canalys, said it would be crucial for Huawei to provide clarification on its technology, given the high level of market interest.
“If it is indeed true that Huawei is able to develop its own 5G SoC (system-on-chip) that exceeds industry current development timeline, it signals a significant leap in its R&D capabilities. It creates huge disruption to the semi industry, especially to its competitors,” she said.
“On the other hand, the doubt surrounding Huawei’s ability to develop 5G SoC and its vagueness about the product and launch could harm its credibility in the long run. It could turn south if the claims are false.” REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
