SMIC’s Stock Surges Amid China’s Push for Self-Reliance but Faces Risks and Overvaluation Concerns
Key Points SMIC’s Shanghai shares have surged 120% since September, outperforming global peers. Beijing’s localization push has boosted demand for domestic chipmakers. U.S. restrictions limit access to advanced semiconductor technology. Rivals like TSMC may intensify competition by lowering legacy chip prices. SMIC shares trade above historical valuation averages, raising overvaluation concerns. Semiconductor Manufacturing International Corp. (SMIC), China’s largest outsourced chipmaker, has seen its Shanghai-listed shares more than double in value over the past two months. The 120% rise from a...