Economic security

China’s semiconductor stocks showing some signs of immunity as coronavirus rips through the rest of the world’s tech industry

The coronavirus pandemic has torn apart businesses and supply chains across the globe. But stock analysts say one sector is showing some signs of immunity: Chinese semiconductor manufacturers.

The Chinese makers of the tiny data-processing brains used in everything from laptops to cellphones and washing machines are getting a boost from surging demand at home, as domestic manufacturers turn to them to replace products they normally get from virus-stricken suppliers in the US and Europe.

Because China appears for now to have successfully beaten back the virus, most of its factories are already firing back up. While the rest of the world is under siege, leading to uncertain foreign demand, China’s domestic semiconductor makers are getting a major boost from Huawei. The Chinese tech giant began sourcing more of its semiconductor needs back home amid blacklisting by the US, which claims its products can be used for spying – a charge Huawei denies.