Hong Kong stocks concept tracking | The United States introduces new regulations on AI chip control to push for the development of domestic computing power and advanced process technology (with concept stocks)

On January 13 local time, the US government announced new regulations on US-made AI chip control, stipulating a limit on the computing power of chips that American companies can sell to most countries. Nvidia stated, "The personal computers used daily by global users are already equipped with data center-related GPU products and technology. Attempting to control them is meaningless, and may instead force the world to seek alternative solutions, damaging US interests." Oracle, on the other hand, stated that this new regulation could become one of the most destructive policies in the history of the US technology industry, "directly shrinking the global chip market for US companies by 80%." A report by Founder stated that the global photolithography machine market is expected to be around 145/164/244 billion euros from 2021 to 2023. Photolithography machines, as the most cutting-edge category of semiconductor equipment, have a high degree of competition and concentration, with higher-end models having higher market concentration. Photolithography machines are extremely complex systems, and the localization of the entire industry chain of photolithography machines is an inevitable result of self-controllability. Furthermore, CITIC Securities released a report stating that the Biden administration has officially announced new global control measures on the export of AI chips, dividing countries and regions worldwide into three categories and implementing different restrictions. Strict controls are imposed on the purchase of AI chips by mainland China and other regions. The US restrictions continue to drive domestic alternatives in AI computing power and advanced processes. CITIC Securities estimates that the market space for domestic AI computing power chips is around $30 billion, and continues to recommend related domestic wafer foundries, AI chip design, semiconductor equipment, and advanced packaging industrial chains. Key HK-listed companies in the semiconductor-related industry chain include Semiconductor Manufacturing International Corporation (00981), HUA HONG SEMI (01347), SHANGHAI FUDAN (01385), Zhuzhou CRRC Times Electric (03898), etc.