HK Stock Market Move | Semiconductor Manufacturing International Corporation (00981) rose more than 5% in early trading, indicating a new upward cycle for the semiconductor industry. The company's fourth quarter revenue is expected to increase month-on-month.

Semiconductor Manufacturing International Corporation (00981) rose more than 5% in the early session, and as of the close of the report, rose 4.26% to HK$31.85, with a turnover of HK$996 million. On the news front, the International Semiconductor Industry Association (SEMI) estimates that global semiconductor production capacity will increase by 6.6% by 2025, reaching a monthly scale of 33.6 million wafers. In response to the growing demand for computing, production capacity for advanced nodes of 7nm and below will reach 2.2 million wafers per month, with a year-on-year increase of 16%. According to data from the Semiconductor Industry Association (SIA) in the United States, global semiconductor sales reached $578 billion in November 2024, an increase of 20.7% year-on-year and 1.6% month-on-month. Huaxin Securities stated that Semiconductor Manufacturing International Corporation is a leader in the integrated circuit manufacturing industry in mainland China and one of the world's leading integrated circuit wafer foundries, and its scarcity and importance are self-evident. The company's Q3 revenue increased by 14% quarter-on-quarter, reaching $2.17 billion, breaking through the $2 billion mark for the first time in a single quarter and setting a new historical high. In terms of production capacity, the company added 21,000 12-inch wafer production capacity per month, promoting further optimization of product structure and an increase in average selling price. Overall production capacity utilization rate increased to 90.4% and gross margin increased to 20.5%. According to the company's guidance, the company's fourth-quarter revenue is expected to remain flat to grow by up to 2%, with gross margin between 18% and 20%.