British News Agency

Shares of Hua Hong Semiconductor fell 2.6%, while Semiconductor Manufacturing International Corp dropped 2% on the Hong Kong stock exchange. Both stocks had fallen more than 4% on Tuesday.

Equipment suppliers also weakened, with NAURA Technology Group losing around 2%. Shares of Cambricon Technologies also declined by more than 2%.

The decline came after a Financial Times report on Wednesday stating that Beijing had quietly added domestically produced AI chips, such as those from Huawei, to the official government procurement list for the first time.

The report noted that the move aims to expand the use of domestic semiconductors in government institutions and state-owned companies, potentially generating billions of dollars in orders for local chip designers.

Sales of Nvidia chips will still require approval and may face resistance from U.S. lawmakers and Chinese regulators, but the decision could give Chinese buyers some breathing room and reduce the urgency of switching to local processors.