By Nicholas G. Miller

Shares of semiconductor companies jumped after Huawei Technologies said it had developed a workaround that would allow it to make more advanced chips without the specialty equipment the U.S. has blocked.

ACM Research rose 6.8% in premarket trading. United Microelectronics jumped 15%. Power Integrations gained 9.4%. Wolfspeed increased 9.5%.

Huawei revealed a new principle, called the Tau Scaling Law, that centers on shortening the time for data to move through chips. It said the benefits from the efforts to make better chips by shrinking transistors have slowed and that the industry must now focus on reducing time rather than size.

The company said it expects to design high-end chips that match the transistor density of those manufactured with a 1.4-nanometer process by 2031.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

May 26, 2026 08:57 ET (12:57 GMT)

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