Semiconductor stocks generally rose in early trading. As of press release, Huahong Semiconductor (01347) rose 3.92% to HK$14.84; SMIC (00981) rose 3.68% to HK$14.64; and Shanghai Fudan (01385) rose 2.6% to HK$9.47.
The Zhitong Finance App learned that semiconductor stocks generally rose in early trading. As of press release, Huahong Semiconductor (01347) rose 3.92% to HK$14.84; SMIC (00981) rose 3.68% to HK$14.64; Shanghai Fudan (01385) rose 2.6% to HK$9.47; and Jingmen Semiconductor (02878) rose 0.81% to HK$0.25.
According to the news, according to the forecast of the American Semiconductor Industry Association SIA, as demand for chips in various fields increases, the global chip industry is expected to rebound sharply this year, and sales are expected to reach record highs. John Neuffer, president and CEO of the association, said that global semiconductor sales were sluggish in early 2023 but rebounded strongly in the second half of the year, and this trend is expected to continue in 2024. As chips play an increasingly important role in the myriad products the world depends on, the long-term prospects for the semiconductor market are very strong.
According to Tianfeng Securities, SMIC Huahong disclosed 4Q23 results on February 6. SMIC showed 4Q23 revenue up 1%-3% month-on-month, gross margin fell to the 16%-18% month-on-month range, while Huahong Semiconductor's early guidance 4Q23 revenue fell to US$45-50 billion month-on-month, and gross margin fell to 2%-5% month-on-month. Downstream demand in the fourth quarter was affected by the mobile phone industry's peak season, but some design companies are still in the 4Q phase of price reduction and inventory removal, and the utilization rate of mainland wafer foundry production capacity is expected to be relatively low. The bank believes that the current industry inventory is at a relatively healthy level, and the semiconductor industry cycle is at a relatively low level. In the future, as new technologies such as 5G/AI are iterated and domestic substitution continues, the capacity utilization rate of mainland foundry is expected to be repaired quarterly, which in turn will drive improvements on the performance side.