(Yicai Global) May 18 -- Digital China fell by the daily exchange-imposed limit today as investors sold to make a profit after the electronic manufacturer’s shares soared since last November.

Digital China announced plans in November to build a personal computer factory in Xiamen, the capital of China’s Fujian province. Its shares [SHE:000034] rose more than 50 percent in the months that followed, hitting a three-year high of CNY32.94 (USD4.60) in March. Today, the Beijing-based company fell 10 percent to close at CNY25.15 (USD3.54) after saying the plant went into production over the weekend.

The factory will turn out computers and servers equipped with Huawei Kunpeng chips as central processing units. Digital China did not give details on investment and production, Xiamen Daily reported. The project’s first phase is expected to produce 400,000 to 600,000 units a year.

Digital China will also take part in the construction of smart city infrastructure in Xiamen, covering big data, artificial intelligence, smart logistics, and public service platforms, it said in November.

Kunpeng chip is a server chip independently designed by Chinese technology giant Huawei based on ARM architecture. China Telecom’s latest server tender results, released last week, show that 79.4 percent of its 56,000 servers it ordered in 2020 still use chips supplied by Intel, while the remaining 19.9 percent will use domestic chips, including Huawei’s Kunpeng chips.

Digital China is one of Huawei’s important business partners and provides cloud computing infrastructure and solutions to customers.

Editor: Peter Thomas