By Yifan Wang

BYD Co. shares jumped in morning trade Wednesday as investors warmed up to the electric car maker after it finalized details of an expected listing of its chip-making unit.

The stock gained as much as 7.6% by the midday trading break.

The Chinese car maker late Tuesday announced plans to list its subsidiary BYD Semiconductor Co. Ltd. on the Growth Enterprise Market of the Shenzhen stock exchange. BYD had earlier expressed intentions for a potential listing when it spun off the unit and secured a host of strategic investors last year.

Investors have grown increasingly enthusiastic about the semiconductor sector as a global supply shortage and booming electronics demand fuelled the industry's earnings and stock valuations in recent months.

Many tech firms are eager to expand their businesses into the chip market. Apple supplier Foxconn Technology Group, also known as Hon Hai Precision Industry, earlier this month set up a joint venture with another Taiwanese electronics maker to develop chips.

BYD's positive momentum on Wednesday also followed a recovery in Hong Kong tech stocks, as overnight gains for several U.S. tech giants lifted sentiment and helped the sector recoup some of Tuesday's steep losses.

BYD shares eased from their morning gains and were last 4.9% higher at HK$149.00 in early afternoon trading.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

05-12-21 0128ET