HK Stock Market Move | Semiconductor stocks rise against the trend, with Hua Hong Semi (01347) soaring by over 10% and Solomon Systech (02878) increasing by nearly 7%.

Semiconductor stocks have strengthened against the trend. As of the time of writing, HUA HONG SEMI (01347) rose by 10.43% to HK$34.4, SOLOMON SYSTECH (02878) rose by 6.9% to HK$0.62, CE HUADA TECH (00085) rose by 5.8% to HK$1.46, SHANGHAI FUDAN (01385) rose by 4.36% to HK$199.14, and Semiconductor Manufacturing International Corporation (00981) rose by 3.14% to HK$49.35. On the news front, the latest "Global Semiconductor Technology Supply Chain Intelligence Report" released by market research firm IDC shows that global demand for AI and high-performance computing (HPC) will continue to rise, with the global semiconductor market expected to grow by over 15% by 2025. In addition, Citigroup's report stated that Semiconductor Manufacturing International Corporation and HUA HONG SEMI both announced fourth-quarter earnings last year, with revenues growing by 32% and 18% respectively year-on-year due to a recovery in domestic demand. The bank stated that SMIC and Hua Hong are optimistic about recent demand, mainly due to customers ordering ahead of tariff concerns and benefiting from policy support. SMIC expects to achieve above-average industry growth this year. Furthermore, on Tuesday local time, U.S. President Trump stated that he will announce import tariffs on automobiles, semiconductors, and pharmaceuticals in early April. Tianfeng believes that in the long run, the uncertainty brought by external geopolitical influences is expected to accelerate the pace of domestic substitutions in the Chinese mainland semiconductor industry chain. Guosen believes that through adaptation with domestic large models like DeepSeek, the support capabilities of domestic full-function GPUs for complex AI tasks will be validated and optimized, helping the development of the entire domestic AI industry chain. They continue to recommend related semiconductor companies such as Semiconductor Manufacturing International Corporation.