Since it marks a development in China’s domestic chip manufacturing, Huawei Technologies Co.’s small but surprising debut of a new phone last week triggered a search for possible beneficiaries.

Semiconductor Manufacturing International Corp., the largest chipmaker in China, has seen a surge in traders and investors, boosting its market value by more than $5 billion since the beginning of last week. On Monday, after Bloomberg News revealed that Huawei was employing SMIC chips, the company’s gains accelerated.

The Mate 60 Pro has swiftly emerged as a symbol of the Chinese semiconductor sector, which is more upbeat as a result of the stock euphoria. Its 7nm SMIC CPU, according to TechInsights, the semiconductor expert who performed the breakdown for Bloomberg, suggests early development of a domestic chip manufacturing ecosystem. The silicon supply chain may experience an increase in demand as a result.

The pursuit of the rally, however, appears more and more perilous in the absence of a comprehensive specification for Huawei’s chip and more precise information regarding the capability of producing the component in large quantities and at an affordable price.

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