A ban in China against the German chip giant Infineon Technologies from selling gallium nitride (GaN) products has led to a significant rise in domestic semiconductor stocks. This move comes after China’s Supreme People’s Court upheld a previous ruling that found Infineon in violation of GaN patents held by Chinese competitor Innoscience. As a result, Infineon is required to halt all sales and imports of the contested products in China and pay damages totaling 10 million yuan. Despite the ruling, Infineon claims the impact on its GaN business will be minor and plans to appeal the decision. The court’s decision has boosted Chinese chip stocks, with Innoscience’s shares in Hong Kong rising by 16.6%, and other semiconductor companies like Silan Microelectronics, Sanan Optoelectronics, and China Resources Microelectronics experiencing significant gains.
Why did Chinese chip stocks surge after the Infineon GaN patent ruling?
