Hong Kong Stock Movers | Chip Stocks Decline in Early Trading Shanghai Fudan (01385) Falls Nearly 8% Huahong Semiconductor (01347) Drops Over 4%

CNBC Finance APP has learned that chip stocks declined across the board in early trading. As of the latest report, Shanghai Fudan (01385) fell 7.71% to HKD 44.28; Huahong Semiconductor (01347) dropped 4.59% to HKD 90.5; Semiconductor Manufacturing International Corporation (00981) decreased 2.59% to HKD 60.1; ASMPT (00522) declined 1.65% to HKD 107.2.

On the news front, recent reports indicate that Huahong Group has successfully developed 7nm manufacturing technology, and Huali Micro may become the second domestic semiconductor manufacturer after SMIC with 7nm production capability. Morningstar released a research report stating that if the news is true, it would fundamentally change the company’s business model; it also believes Huahong has no motivation to pursue 7nm chip manufacturing. Huahong Semiconductor will focus on specialized technologies on behalf of Huahong Group, avoiding the development of cutting-edge products.

It is worth noting that TSMC, SMIC, and Huahong Semiconductor have previously announced price increases, with some process node prices rising by 10%-20%. The latest news also shows that several wafer foundries, including UMC, World Advanced, Powerchip, and JCET, have announced price hikes. The price increases are mainly due to geopolitical instability, supply chain fluctuations, and rising raw material costs.