HK Stock Market Move | Chip stocks soared in the afternoon, with TSMC facing an urgent capacity shortage and transferring orders. The company did not rule out the possibility of raising prices in the future.

Chip stocks rose sharply in the afternoon, as of the time of writing, ILUVATAR COREX (09903) rose 12.4% to HK$584.5; HUA HONG GRACE (01347) rose 9.36% to HK$174; GigaDevice Semiconductor Inc. (03986) rose 8.3% to HK$913.5; Semiconductor Manufacturing International Corporation (00981) rose 2.84% to HK$77.9. On the news front, on June 10, TSMC CFO Huang Renzhao said that inflation has increased operating costs, and the company does not rule out future price increases, but there will not be a "four to five times" surge. In addition, according to reports from Caijing Media, sources revealed that due to the demand for artificial intelligence infrastructure far exceeding TSMC's advanced chip manufacturing capacity, Samsung Electronics is receiving more and more chip outsourcing orders from global customers such as Google, AMD, and Tesla. Huatai released a research report stating that in the context of the demand for self-controllable core technologies and the transfer of bargaining power, domestic AI chip companies still have the ability to transfer costs, and profit elasticity is expected to be reflected under the advantage of scale, potentially ushering in an opportunity for simultaneous increase in volume and price. Potential catalysts for the subsequent domestic computing power sector include: the release and testing adaptation results of new generation products; and the implementation of price increases. (Note: Some company names and numbers were left untranslated as they are proper nouns.)