HK Stock Market Move | The two leading semiconductor foundries reported increased earnings in the second quarter. Hua Hong Grace Semiconductor (01347) rose over 8% in early trading, while Semiconductor Manufacturing International Corporation (00981) jumped over 7%.

The semiconductor foundry giants both rallied in the early trading session. As of the time of writing, Semiconductor Manufacturing International Corporation was up 7.06%, priced at HKD 75.8; Hua Hong Grace Semiconductor rose 7.99%, priced at HKD 140.5. On the news front, Semiconductor Manufacturing International Corporation and Hua Hong Grace Semiconductor both released their second-quarter results on the evening of the 13th. Semiconductor Manufacturing International Corporation's revenue for the period surpassed USD 3 billion for the first time, growing 20% quarter-on-quarter and 36.1% year-on-year; the quarterly gross margin reached 25.3%, all exceeding the guidance provided for the first quarter. Hua Hong Grace Semiconductor achieved record revenue in the second quarter, with sales reaching USD 717.5 million, a year-on-year increase of 26.8%; the net profit attributable to shareholders was USD 38.639 million, a remarkable increase of 385.9%, with a gross margin of 16.5%, up 5.6% year-on-year. According to TrendForce, the global foundry market is expected to grow by 24.8% year-on-year in 2026, reaching an overall scale of approximately USD 218.8 billion; the industry is anticipated to continue its growth in the third quarter, driven by sustained demand for AI chips and the arrival of the traditional peak season for consumer electronics, which is expected to further release demand in the mature process market.