HK Stock Market Move | Hua Hong Grace Semiconductor (01347) rose by more than 5% again, with expectations of an increase in prices for mature process wafer foundry services. Hua Hong Grace Semiconductor is expected to benefit.

Hua Hong Grace Semiconductor (01347) rose more than 5%, up 4.26% to HK$210.2 as of the report, with a turnover of HK$773 million. On the news front, Hua Hong Grace Semiconductor announced that the company had previously disclosed the intention to issue shares to purchase 97.4988% equity of Huacihu 97.4988% and raise supporting funds, and had obtained the approval of the China Securities Regulatory Commission on July 8 to proceed with the registration approval, with the funds not exceeding RMB 7.556 billion. After the completion of this transaction, Huahong Company will fully control Huacihu. Huayuan Securities believes that TSMC officially began to gradually reduce 8-inch production capacity in 2025, with the goal of partial production area shutting down by 2027; Samsung started to reduce production on 8-inch production lines in the same year. In 2026, despite plans for small-scale expansions by SMIC, Vanguard, and other manufacturers, they are still not as large as the reduction in production capacity of the two giants. At the same time, the increasing demand for power management and power semiconductor in AI servers will drive the utilization rate of 8-inch production capacity of the top ten wafer foundries to nearly 90%, and there is an expectation for an increase in prices for mature process wafer foundry services.