Chinese Analog Chip Companies Rise After Beijing Launches U.S. Probes

By Sherry Qin

Shares of Chinese analog chip vendors rose sharply after Beijing launched probes into the U.S. semiconductor sector, boosting hopes for local chip makers to gain market share.

Shares of SG Micro, a Beijing-based analog chip designer, surged by the 20% daily trading limit in Shenzhen on Monday. 3Peak, another Chinese analog chip maker, rose 10% in Shanghai. OmniVision Integrated Circuits Group gained 1.9% and Suzhou Novosense Microelectronics increased 11%.

China announced Saturday that it had launched two probes into the U.S. semiconductor sector, one targeting American analog chips for alleged dumping and the other concerning broader U.S. discrimination against the Chinese chip sector.

The probes are deemed to be retaliatory moves, as the U.S. recently blacklisted 23 more Chinese firms on national-security concerns.

Citi analysts said that the probes bode well for Chinese analog chip makers. China's analog localization remains low, with the domestic market accounting for only 10%-15% of Chinese companies' global revenue share. And as China strengthens its localization resolve, "market-share gain by domestic vendors over the coming years" will be likely, the analysts said in a research note.

Citi opened an upside 90-day catalyst watch on OmniVision and SG Micro, as China could impose tariffs on U.S. analog integrated circuits or restrictive measures on U.S. chip usage.

Despite the sharp gains in analog chip makers, broader semiconductor stocks ended mixed on Monday. SMIC, China's largest chip maker, edged 0.2% higher in Shanghai and artificial-intelligence chip designer Cambricon Technologies ended 3.2% lower.

Given the recent rallies amid Beijing's increasing efforts to localize chip production, Chinese chip stocks have likely priced in the positive developments.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

September 15, 2025 05:17 ET (09:17 GMT)