HUA HONG SEMI (01347) is currently up more than 6%. As of writing, the stock has risen 5.77% to HK$106.4, with a turnover of HK$1.488 billion. According to the latest report from TrendForce, reductions in 8-inch wafer foundry capacity by TSMC and Samsung Electronics are projected to cause a synchronized 2.4% decrease in global 8-inch wafer foundry total capacity by 2026. Concurrently, demand for AI-driven power management-related mature process chips remains robust, which is expected to push the capacity utilization rate of 8-inch wafer foundries up to 90% this year. Amid these contrasting dynamics, 8-inch wafer foundries may raise their quotes by 5% to 20% this year. Huaxin Securities stated in a research note that the utilization rates of HUA HONG SEMI's three 8-inch wafer fabs continue to remain high, while the actual wafer input volume of its first 12-inch fab has already exceeded the design capacity of 100,000 wafers per month. Consequently, to handle the continuous influx of orders, HUA HONG SEMI is actively expanding its production capacity. Another 12-inch wafer fab, currently in a phase of ramping up capacity, is expected to complete its overall capacity configuration in the third quarter of 2026. Currently, the HUA HONG SEMI group's 8-inch wafer foundry capacity is approximately 190,000 wafers, and the capacity utilization rate for its 8-inch wafer foundry business has already surpassed 100%.
Comments