HK Stock Market Move | Chip stocks continue recent gains, domestic alternatives remain a long-term trend. Institutions say mature process prices are expected to rebound.

Chip stocks continued their recent uptrend. As of the time of writing, HUA HONG SEMI (01347) rose 5.74% to HK$24.85; SOLOMON SYSTECH (02878) rose 5.05% to HK$0.52; Semiconductor Manufacturing International Corporation (00981) rose 3.92% to HK$43.75; SHANGHAI FUDAN (01385) rose 2.61% to HK$15.74. Tianfeng pointed out that the change in US semiconductor policy after the inauguration of the new president is worthy of attention. The external geopolitical restrictions on China's semiconductor industry are expected to accelerate the development of the local industry chain. Domestic substitution may become a long-term trend, especially in the areas of artificial intelligence and advanced processes. In addition, mature process chips including analog/power/MCU, as investigations land and progress, will further drive domestic market share and prices are expected to steadily rise.