HK Stock Market Move | HUA HONG SEMI(01347) surged nearly 8% to a record high in early trading. The company recently announced a restructuring with Huahong Microelectronics. Goldman Sachs stated that the company has been negotiating price increases with customers.

HUA HONG SEMI (01347) rose nearly 8% in early trading, hitting a new high of 71.4 Hong Kong dollars. As of the time of writing, it rose by 5.51%, reaching 69.9 Hong Kong dollars, with a trading volume of 1.641 billion Hong Kong dollars. On the news front, Huahong recently announced a restructuring with Huali Micro to address industry competition issues related to the IPO commitment. Huali Micro's fifth factory mainly provides 12-inch integrated circuit wafer foundry services to customers, with a capacity of 38,000 pieces per month, providing complete technical solutions for terminal applications such as communication and consumer electronics, with both companies owning 65/55nm and 40nm process foundry technologies. This restructuring will further enhance the company's 12-inch wafer foundry capacity, and the complementary advantages of both sides' technology platforms can jointly build a wafer foundry and supporting services covering a wider range of application scenarios and more complete technical specifications. Goldman Sachs recently released a research report stating that due to the increase in global mature process capacity and the slowdown in end-market growth, the average selling price of Huahong's products has been trending downwards since the first quarter of 2023. However, with the support of capacity utilization exceeding 100% from the third quarter of 2024 to the second quarter of 2025, Huahong has begun price negotiations with customers, which is expected to be reflected in the third quarter of 2025 performance. Although the short-term average price increase will not be significant, the bank believes this is a positive signal of supply and demand improvement. With the major end-markets having completed inventory adjustments, future prices are expected to show a gradual and sustainable upward trend.