HK Stock Market Move | Chip stocks fell across the board in early trading, with Shanghai Fudan (01385) dropping nearly 8% and Hua Hong Semiconductor (01347) falling over 4%.

Chip stocks fell across the board in the morning session, as of the time of publication, SHANGHAI FUDAN (01385) fell 7.71% to HK$44.28; HUA HONG SEMI (01347) fell 4.59% to HK$90.5; Semiconductor Manufacturing International Corporation (00981) fell 2.59% to HK$60.1; ASMPT (00522) fell 1.65% to HK$107.2. On the news front, it was reported recently that Huahong Group has successfully developed 7nm manufacturing technology, and Huahaiwei may become the second domestic semiconductor manufacturer with 7nm manufacturing capability after Semiconductor Manufacturing International Corporation. Morningstar released a research report stating that if the news is true, it will completely change the company's business model; and that Huahong has no motivation to pursue 7nm chip manufacturing. HUA HONG SEMI will focus on special technology on behalf of Huahong Group and avoid developing cutting-edge products. It is worth noting that TSMC, Semiconductor Manufacturing International Corporation, and HUA HONG SEMI have previously reported price increases, with some process node prices rising by 10%-20%. The latest news shows that UMC, Global Foundries, Powerchip Technology, Nexchip Semiconductor Corporation, and many other wafer foundries have also reported price increases. The price increases are mainly due to factors such as geopolitical instability, supply chain fluctuations, and rising raw material costs.