Hong Kong-listed semiconductor stocks are experiencing a broad-based rebound.
At the time of writing, HUA HONG GRACE (ASX: 01347) surged 15.82% to HK$16.55. NEXCHIP (ASX: 02249) gained 8.85% to HK$3.222, while SMIC (ASX: 00981) advanced 8.24% to HK$7.55. SHANGHAI FUDAN (ASX: 01385) rose 6.28%, trading at HK$2.674.
Driving Forces Behind the Surge
The rally follows reports indicating that Taiwan Semiconductor Manufacturing (TSMC) is considering a price increase for chips made using mature process technologies, potentially effective in early 2027. This would mark its first price adjustment for non-advanced nodes in over three years, signaling that the AI-driven semiconductor demand boom is expanding beyond GPUs and high-performance computing into areas like power management integrated circuits (PMICs) and power devices, which typically utilize mature processes.
Upgraded Outlook from Industry Leader
Concurrently, TSMC has revised its full-year revenue forecast upward, raised its outlook for AI demand, and increased its capital expenditure (Capex) guidance.
Analyst Perspective on the Implications
Northeast Securities analysts noted that the upward revision in TSMC's capital spending reaffirms the robust health of the AI sector. The supply tightness is not confined to advanced manufacturing processes; AI data centers are also driving significant demand for PMICs and sensors, leading to shortages in mature-node capacity as well. The firm suggests domestic foundries could benefit by following two key paths: first, by expanding advanced process capacity to capture spillover demand from AI computing needs and support localization efforts; second, by participating in mature process price hikes, which could improve capacity utilization and average selling prices (ASPs), thereby driving profit recovery. The analysts express a positive view on related foundry companies.
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