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Chinese listed companies affected by Intel chip flaws

Xinhua | Updated: 2018-01-16 11:27
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SHANGHAI - More than 30 chip concept companies listed on the Chinese stock market were affected Monday by critical Intel chip flaws.

Intel's Spectre and Meltdown vulnerabilities disclosed earlier in January by Google's Project Zero, a team that focused on discovering security issues, have affected almost the whole industry globally.

China's leading companies such as Unigroup Guoxin went limit down during the day, and the growth enterprise index decreased nearly 3 percent.

Before the crisis, chip industry was believed to be one of the most promising sectors on the Chinese stock market, but the Intel flaws have left many investors re-estimating their perspective.

Pan Jiang, a Shanghai mutual fund manager, told Xinhua that the effect on the Chinese industry remains to be seen and his team will be cautious until they have a clear picture.

However, Pan said it would not affect government support for the industry.

Pan added that the new generation of information technology is one of the ten most supported industries in the "Made in China 2025" plan. In 2016, the total output value of the integrated circuit industry in China exceeded 100 billion yuan ($15.6 billion). By 2025, China's chip self-sufficiency rate is expected to reach 50 percent, according to the plan.

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