HK Stock Market Move | Semiconductor Manufacturing International Corporation (00981) rose by more than 3%. The company benefits from structural AI demand and the localization of advanced processes, and its advanced logic capacity may further increase.

Semiconductor Manufacturing International Corporation (00981) rose over 3%, and as of the time of writing, it is up 3.06%, trading at HKD 67.3, with a transaction volume of HKD 2.104 billion. On the news front, a report from UBS pointed out that Semiconductor Manufacturing International Corporation, as the only foundry in China with 7nm node technology capability and mass production experience, stands to benefit the most from structural demand for artificial intelligence and the localization of advanced processes. With export controls becoming manageable and domestic equipment and supply chains maturing, it is expected that SMIC's advanced logic capacity will increase from 26,000 wafers per month by the end of 2025 to 98,000 wafers per month by the end of 2028, and further increase to 166,000 wafers per month by 2030. As the supply of advanced logic in China is expected to remain tight in the next one to two years, capacity is anticipated to be utilized at nearly full capacity, and the average price of advanced node subsidiaries will also rise moderately.