The Zhitong Finance App learned that semiconductor stocks continued to rise in early trading. As of press release, Shanghai Fudan (01385) rose 5.09% to HK$10.74; SMIC (00981) rose 3.16% to HK$15.04; Huahong Semiconductor (01347) rose 2.81% to HK$16.1; and CLP Huada Technology (00085) rose 1.52% to HK$1.34.
According to the news, Asmack said in its 2023 annual report released on Wednesday that the semiconductor market has bottomed out and there are signs of recovery. Asmack said that in the fourth quarter, the amount of new orders more than tripled from 2.6 billion euros in the previous quarter to 9.19 billion euros, a record high, far higher than analysts' average expectations of 3.6 billion euros. In addition, TSMC's consolidated revenue for January was NT$215.785 billion, up 22.4% from the previous month and 7.9% year-on-year. TSMC President Wei Zhejia previously predicted that the overall output value of the semiconductor industry is expected to increase by 10% (excluding memory) this year, and that the revenue of the wafer processing industry will also increase 20%.
SPDB International pointed out that it maintains an optimistic view of China's semiconductor foundry industry: First, the year-on-year growth rate of foundry revenue continues to improve. The year-on-year revenue growth rate of SMIC and Huahong in the fourth quarter of last year and the first quarter of this year continued to improve compared to the third quarter of last year. Second, profits in the foundry industry have bottomed out, lagging behind the revenue growth rate, but Huahong's gross margin is already showing signs of bottoming out and improving. Finally, although the valuation of foundry players continues to rise, it is still in a relatively low position, and there is plenty of room for growth.