HK Stock Market Move | Semiconductor stocks fell further in the afternoon as geopolitical tensions intensified and exacerbated chip supply shortages. Institutions pointed out that the acceleration of self-controllable technology will continue.

Semiconductor stocks fell further in the afternoon, as of the time of writing, HG SEMI (06908) fell by 16.18% to 0.57 Hong Kong dollars; SOLOMON SYSTECH (02878) fell by 7.14% to 0.52 Hong Kong dollars; HUA HONG SEMI (01347) fell by 5.64% to 21.75 Hong Kong dollars; SHANGHAI FUDAN (01385) fell by 1.16% to 15.38 Hong Kong dollars. On the news front, according to recent reports from the media, the US Department of Commerce has written to TSMC, requesting to stop supplying 7-nanometer and more advanced AI chips to customers in mainland China from the 11th. Sources said that TSMC has notified affected customers and will suspend the shipment of related chips starting from the 11th. There are also reports that the latest restrictions only apply to AI/GPU-related chips, and chips used in smartphones, automobiles, and communications are not affected. Huaxi Securities pointed out that semiconductors are an important area of competition for major countries, and geopolitical tensions are exacerbating chip supply shortages. It is imperative to achieve self-controllability in the field of semiconductors. In addition, with the possibility of increased technology restrictions and trade sanctions against China under President Trump, achieving self-control in semiconductors in China is not only necessary but will also accelerate. Huatai stated that if the scope of semiconductor export restrictions is further expanded, it may have a certain impact on the Chinese semiconductor industry in the short term, but in the long run, it may promote domestic substitution.