HK Stock Market Move | Hua Hong Grace Semiconductor (01347) surged over 5% during trading today as it officially turned blue. The Tao Law is expected to drive demand for advanced process wafers.

Hua Hong Grace Semiconductor (01347) saw its stock price rise by over 5%, and as of the time of this report, it has increased by 4.56% to HKD 114.7, with a trading volume of HKD 1.763 billion. In terms of news, according to an announcement released by the Hang Seng Index Company on August 21, Hua Hong Grace Semiconductor has been included in the constituents of the Hang Seng Index, and the change will officially take effect today (September 7). Notably, on September 4, Huawei's semiconductor head He Tingbo updated the (Tao) Law paper, directly addressing concerns about heat generation in 3D stacked chips. KGI Securities stated that it is advisable to focus on the Fab, CP testing, and the addition of equipment. In terms of Fab, the Tao Law directly drives the demand for advanced process wafers, and the design innovations associated with the Tao Law mainly come from the collaborative R&D of front-end wafer fabs. Additionally, Hua Hong Grace Semiconductor recently disclosed its plan to build the Wuxi Phase III project. The total investment for this project is USD 6.95 billion, aimed at utilizing the existing production and power facilities at the company's Wuxi base to construct clean rooms and power systems, along with equipping them with corresponding process equipment, measurement and auxiliary equipment, automated handling systems, and production management systems. The plan emphasizes the establishment of a distinctive process technology platform through independent R&D and appropriate technology introduction, building a specialized process production line with a monthly capacity of 55,000 wafers at 12 inches.