A chip manufacture machine Photo: VCG

State Administration for Market Regulation (SAMR) started a series of investigation on multiple reported cases in domestic vehicle chips sector, SAMR said in an announcement on its official website on Tuesday. Stock prices of multiple listed companies in China have witnessed sharp slide.

By the trading close time of Tuesday, share prices of vehicle chips related companies including Gigadevice Semiconductor (Beijing) Inc, Hangzhou Lion Microelectronics Co and Wuxi NCE Power Co all reached their daily decline limits.

Due to various issues in vehicle chips market such as bidding up products prices, SAMR launched an investigation into suspected vehicle chips traders and companies according to related supervision data and market reports, according to the announcement. 

SAMR also vowed to keep monitoring the prices of critical products including chips to regulate the market environment. SAMR will strengthen market oversight and strictly penalize illicit business activities such as stocking up goods, bidding up prices and collusions.

Global Times