Cambricon Technologies Corp, a leading Chinese AI chip company, has seen its stock price surge in 2024, more than doubling since July. This growth is fuelled by China's increasing focus on semiconductor self-sufficiency and rising demand for domestic AI chips. Cambricon's stock performance has outpaced industry giants, driven by government support and increasing trade tensions.
This surge reflects broader trends in China's semiconductor industry, including mandates for domestic data centres to source over 50% of chips locally. This push for self-reliance is further supported by substantial state investment and policies favouring domestic chipmakers. Cambricon's recent announcement of a 4 billion yuan private placement to fund its large-model chip platform highlights its commitment to advancing AI chip technology.
Other Chinese chip stocks have also experienced gains, indicating a positive market sentiment towards domestic semiconductor companies. Cambricon's stock price has risen above 1,200 yuan, positioning it as one of the highest-priced stocks in China's A-share market. The company's success underscores China's determination to establish a robust domestic semiconductor industry amid geopolitical uncertainties.
