HK Stock Market Move | Chip stocks are performing strongly, with AI driving prices up across the entire semiconductor industry chain. Two semiconductor companies have officially announced price increases.

Chip stocks performed strongly. As of the time of drafting, Suzhou Novosense Microelectronics (02676) rose 14.45% to 161.6 Hong Kong dollars; GigaDevice Semiconductor Inc. (03986) rose 9.84% to 352.6 Hong Kong dollars; HUA HONG SEMI (01347) rose 5.87% to 120.9 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose 3% to 78.9 Hong Kong dollars. On the news front, on the evening of January 27, China Micro Semicon (Shenzhen) released a price increase letter on its official WeChat account, stating that in view of the current severe supply and demand situation and significant cost pressures, it has decided to adjust prices for MCU, Norflash and other products, with price increases ranging from 15% to 50%. Hunan Goke Microelectronics also announced that it has sent price increase letters to customers, raising prices by 40% for 512Mb KGD products, 60% for 1Gb KGD products, and 80% for 2Gb KGD products, with prices for external DDR products to be notified separately. Dongguan Securities believe that the AI-driven semiconductor industry chain price increases may exert some pressure on the cost side of downstream consumer electronics (such as smartphones, computers, etc.), thereby affecting end-market shipments. However, the continuous increase in AI infrastructure investment by 2026 is seen as a certainty, suggesting investment opportunities in advanced semiconductor packaging, related equipment for advanced packaging, and CPUs.