SMIC's stock price surged 11.37% during intraday trading on Wednesday, leading a broad rally in semiconductor shares.
The sharp gain followed news of a conditional two-week ceasefire agreement between the United States and Iran. This development eased significant geopolitical tensions that had threatened key supply chains for the semiconductor industry, particularly the supply of helium—a critical cooling agent in chip manufacturing that is difficult to store and substitute. Analysts noted that the ceasefire reduces risks of disruption in the Strait of Hormuz, a vital shipping route, thereby lowering potential manufacturing costs and alleviating investor concerns.
Furthermore, the sector continues to benefit from the sustained artificial intelligence investment boom and strong fundamental performance. Recent 2025 financial results for Hong Kong's hard tech sector showed robust growth, while renewed policy focus on achieving technological self-sufficiency in the face of export control developments has reinforced long-term optimism for domestic chipmakers like SMIC.
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