Huawei Launches Mate 60 Pro, Sparks Rally in Chinese Chip Stocks

Chinese chip stocks soared on Wednesday following the release of Huawei Technologies’ new Mate 60 Pro phone. Investors speculated that the phone could be equipped with a 5G capable chip, which would be a major win for China’s local semiconductor sector. Since 2019, Huawei has been restricted by Washington from purchasing advanced chips and software from U.S. companies, severely impacting its consumer electronics business. However, research firms have suggested that Huawei may be planning a comeback in the 5G smartphone industry by procuring chips domestically. The Mate 60 Pro was launched in an unexpected manner, with little advertising or advance notice. The phone’s specifications did not disclose information about the chipset inside, but videos posted by online users who managed to purchase the phone claimed that it matched the network speeds of 5G chipset phones and used a Kirin 9000s chip. These claims have not been verified by Reuters. The Mate 60 Pro’s launch generated significant buzz and became the most searched topic on China’s version of Twitter, Weibo. The surge in interest caused Huawei’s website to announce that buyers would have to wait until September 17 to receive their phones. While the company declined to confirm if the phone was 5G capable, it did say that the Mate 60 series was its most powerful Mate model to date. The launch of the Mate 60 Pro coincided with U.S. Commerce Secretary Gina Raimondo’s visit to China, during which she stated that the U.S. had rejected a Chinese request to reduce export controls on technology. The launch of the Mate 60 Pro also had a positive impact on China’s semiconductor sector, with stocks jumping over 2.5%. China’s Semiconductor Manufacturing International Corp saw a roughly 10% increase in value for the week. Retail investors also expressed their enthusiasm for the new phone by purchasing shares in semiconductor firms, such as Sai MicroElectronics Inc and the tech-focused STAR 50 Index. Some investors hope that Huawei’s technology is authentic as it would have a significant impact on the industry. However, others caution that Huawei needs to provide more clarification on its technology and that its credibility may suffer if the claims are false.