After SMIC’s stellar debut, Chinese AI chip maker Cambricon Technologies soars 350 per cent in Shanghai

Cambricon Technologies, a Chinese maker of artificial intelligence chips that power smartphones and servers, surged more than fourfold on the first day of trading in Shanghai.

The Beijing-based chip maker, which is backed by Alibaba Group Holding, jumped by as much as 358 per cent from its initial public offering price to 295 yuan on the Star Market, on Monday. The gain narrowed to 230 per cent at the close, to 212.40 yuan.

Cambricon is the second high-profile chip maker to list on the domestic market in less than a week. Semiconductor Manufacturing International Corp (SMIC), the nation’s biggest maker of integrated circuits, debuted on the Star Market on Thursday with gains of 202 per cent, after raising 53 billion yuan (US$7.58 billion) in China’s biggest IPO in a decade.

China has accelerated the home listings of domestic chip companies, as its confrontation against the US escalates. President Donald Trump has ordered US technology companies to stop supplying their hardware, software and services to Chinese companies on national security grounds.