MGI Tech (SHA:688114), a Chinese manufacturer of genome sequencing machines, said it is experiencing a significant surge in demand following China's import ban on similar products from US-based companies like Illumina, Yicai Global reported Thursday.

The ban, implemented by China's Ministry of Commerce on Feb. 4, citing national security concerns and placing Illumina on its "unreliable entity list," has prompted domestic customers to seek alternative suppliers, the report said.

MGI Tech is poised to be the primary beneficiary of this market shift, as Illumina's substantial market share is redistributed among local competitors, according to a research report by Guosen Securities.

Prior to the ban, Illumina held a significant presence in the Chinese market, accounting for approximately 26.5% of new gene-sequencing machine installations, generating revenues of $310 million in the past year, the report said.

This market share is now expected to be largely captured by MGI Tech and other domestic manufacturers, Yicai reported.

MGI's shares slipped 1% in recent trade.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)