Chinese stocks rise amid Microns product safety investigation

Chinese stocks rise amid Micron’s product safety investigation

It took some time for the stock market to react to Chinese regulators’ decision to investigate the existence of national security threats from Micron Technology products. Shares of the latter in the US fell 4.4%, while the capitalization of a number of Chinese companies rose a total of US$12 billion on Monday.

    Image source: Micron Technology

Image source: Micron Technology

As explained Bloomberg, shares of Ingenic Semiconductor rose 19% and shares of Advanced Micro-Fabrication Equipment rose 10% during the trading session at the Shanghai Stock Exchange. Investors saw the Chinese authorities’ investigation as a reaction to Western countries’ actions to restrict shipments of equipment and semiconductor companies to China. The company Micron on the Chinese market received about 11% of sales last year, its shares fell by 4.4% on the background of this news.

Notably, the share prices of its Korean peers plummeted. SK Hynix shares fell 2.3% and Samsung Electronics shares fell 1.6%. Some analysts say Micron’s customers in China may switch to other brands made by local companies. Memory manufacturing is not as technically complex as logic chips and is well received by Chinese market participants. Of course, this doesn’t mean Micron products will be banned in China, so the stock market’s initial reaction might be too impulsive.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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