HK chip stocks rose as China trials its first advanced tools for AI chipmaking; SMIC up 5%; Hua Hong Semi and Solomon up 2%

China’s leading chip producer is running trials on the country’s first domestically produced advanced chipmaking equipment in an effort to challenge western rivals in producing artificial intelligence processors, according to FT.

Semiconductor Manufacturing International Corporation (SMIC) is testing a deep-ultraviolet (DUV) lithography machine made by Yuliangsheng, a Shanghai-based start-up, said two people with knowledge of the development.

The ability to produce advanced DUV machines would represent a big victory in China’s ability to overcome US controls on chip export, reduce reliance on western technology and increase the production capacity of advanced AI processors.