Core Viewpoint - Chip stocks experienced a rebound in the afternoon, with several major stocks seeing significant gains, indicating a positive trend in the semiconductor sector [1] Group 1: Stock Performance - Companies such as Cambricon, Taiji, Shengke Communication, Huahong Group, and Jingfeng Mingyuan all saw their stock prices rise by over 5% [1] - Other companies including SMIC, Aishi Chuang, Guoxin Technology, Shengbang Technology, and Guomin Technology also followed suit with notable increases [1]

Group 1 - The Hang Seng Technology Index opened lower but rose over 1.5% during the session, with key stocks like Alibaba and semiconductor companies such as Hua Hong Semiconductor and SMIC showing strength [1] - TSMC reported a revenue of NT$263.71 billion for June, a decrease of 17.7% from May but a year-on-year increase of 26.9%. The company's revenue for the first half of the year was NT$1,773.046 billion, up 40.0% year-on-year [1] - TSMC maintained its forecast for a double-digit revenue growth in USD for the year, estimating a growth rate of 24% to 26% [1] Group 2 - The Hong Kong technology sector has seen a valuation correction over the past quarter, with the latest valuation of the Hang Seng Technology Index ETF (513180) at 19.69 times P/E, which is below 92% of the time since the index was launched [2] - The sector is expected to have significant upside potential if favorable events act as catalysts, given its high growth and elasticity characteristics [2] Group 3 - The semiconductor industry is undergoing a structural transformation driven by geopolitical factors, leading to a decrease in the proportion of externally sourced chips from 63% in 2024 to 42% in 2025 [1]

Group 1 - The Hong Kong stock market continued to decline in the afternoon session, with the Hang Seng Tech Index dropping by 2% [1] - Hua Hong Semiconductor experienced a decline of over 5% [1] - Alibaba's stock fell by more than 3% [1]

7 July 2025 | 3:27PM HKT Hua Hong (1347.HK): Mgmt. Call: Full UT rate to support pricing trend; GM improvements ahead despite D&A burdens; Neutral We hosted Hua Hong management on July 7 in our China Semis Corp Call series (July 7 - 10). Key discussions were around pricing strategies, UT rates, the company's capacity expansion plans and outlook on margin levels. Overall, Hua Hong remains positive on their operations, with UT rates of its major fabs at 100% or above, supported by a strong demand across power ...

Summary of Semiconductor Industry Conference Call Industry Overview - The semiconductor supply chain is accelerating towards self-sufficiency, with significant growth in equipment and materials manufacturers' orders and performance in Q2 2025 [1][2][3] - Key sectors such as storage, analog, and MCU are showing signs of recovery, with strong performance guidance from SoC companies indicating robust demand [1][2] Market Performance - In June 2025, global semiconductor stocks performed well, with the Shenzhen Composite Index rising nearly 6% [2] - Demand for mobile phones, PCs, and wearable devices remains stable, with Xiaomi's AI glasses receiving positive market feedback [1][2] - The automotive market is experiencing steady growth, with Xiaomi's new car sales exceeding expectations [1][2] Inventory and Supply Chain Dynamics - The inventory situation for mobile phones is stable, while PC inventory adjustment space is narrowing [1][3] - Power semiconductor manufacturers are gradually improving their inventory levels [1][3] - TSMC maintains its capital expenditure guidance, while SMIC and Hua Hong are steadily expanding production [1][3] Pricing Trends - After a rapid increase, DDR4 prices are losing momentum, with some models even trading below DDR5 prices, which is expected to drive DDR5 adoption [1][3] - In April 2025, global semiconductor sales increased by over 20% year-on-year, with significant growth in China and the Americas [1][3] Company Developments - Domestic GPU manufacturers such as Muxi and Moer Thread are making progress, while Loongson has released a fully autonomous server CPU [1][2] - Companies like Rockchip and Espressif are showing stable performance, and the MCU market is recovering across multiple sectors [1][2] Financial Performance - Micron's latest financial report shows a nearly 50% increase in HBM revenue, with expectations for Q3 revenue growth of 38% year-on-year and 15% quarter-on-quarter [3][22] - Analog chip companies are experiencing significant revenue growth, with companies like Ti and AD expected to see a 10%-20% increase in Q2 2025 [4][25] Investment Recommendations - Investment suggestions focus on two main areas: self-sufficiency and marginal changes in the economic cycle, with recommended sectors including upstream equipment and materials, storage chip modules, manufacturing and advanced packaging, and AI-related chips [13] Challenges and Opportunities - The RF industry faces competitive pressures, but opportunities for domestic substitution are noteworthy, particularly in the automotive sector [6][28] - The power semiconductor market remains stable, with good demand in the new energy vehicle sector, although price competition persists [7][29] Conclusion - The semiconductor industry is showing signs of recovery and growth across various sectors, with strong demand and improving financial performance expected in the coming quarters. The focus on self-sufficiency and technological advancements will be crucial for future developments [1][2][3][13]

| 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 688347 | 說明 | | 股票於上海證券交易所科創板上市 | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 407,750,000 | | 0 | | 407,750,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 407,750,000 | | 0 | | 407,750,000 | 第 2 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年6月30日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 華虹半導體有限公司（於香港註冊成立的有限公司） | | ...

Group 1 - The core point of the article is that Hong Kong stock market's Hua Hong Semiconductor has seen a significant increase, rising over 4% [1] Group 2 - The article highlights the performance of Hua Hong Semiconductor in the stock market, indicating a positive trend in its share price [1]

国芯网[原:中国半导体论坛] 振兴国产半导体产业！ 不拘中国、 放眼世界 ！ 关注 世界半导体论坛 ↓ ↓ ↓ 7月1日消息， 近日，市场调研机构Yole集团发布报告，显示我国大陆地区在2024年已占据全球代工 产能的21%，位居世界第二，仅次于我国台湾地区的23%，领先韩国的19%，并预计到2030年中国的产 能占比将跃升至30%，成为全球第一！ 报道指出，2024年中国大陆占全球21%的产能，随着本土产能的快速扩张，中国大陆的崛起 凸显了在分散且充满战略博弈的芯片制造格局中，行业话语权正在发生转移。 近年来，我国大力扩充本土代工产能，一方面是为应对不断升级的中美贸易摩擦和制裁措施，保证国内 需求不受外部影响；另一方面亦是国家半导体自给率政策的重要组成部分。随着智慧城市、物联网与人 工智能等应用快速发展，各类芯片需求持续攀升，此前高度依赖海外代工的模式正逐步被国产化替代。 在我国代工厂中，中芯国际（SMIC）、华虹半导体、Nexchip等三家企业跻身全球前十。SMIC自2022 年以来每年投入约500亿元人民币用于扩建产能，其10nm及更先进工艺正处于稳步提升阶段。 国际半导体产业协会数据显示，2024年中 ...

Group 1 - The A-share market's three major indices closed mixed, with the Shanghai National New Sci-Tech Board State-Owned Enterprises Index down 0.05% at 999.69 points, with a trading volume of 17.032 billion yuan [1] - The Shanghai National New Sci-Tech Board State-Owned Enterprises Index has increased by 3.65% in the past month, 0.32% in the past three months, and 2.81% year-to-date [1] - This index reflects the overall performance of state-owned enterprises listed on the Sci-Tech Board, selected from companies with state capital participation and no actual controller, with a base date of December 30, 2022, set at 1000.0 points [1] Group 2 - The top ten weighted stocks in the index include Huahai Qingke (5.82%), Huaron Micro (5.23%), SMIC (5.06%), Haiguang Information (5.02%), and others, with the Shanghai Stock Exchange accounting for 100% of the index's holdings [1] - In terms of industry composition, the index's sample shows that Information Technology accounts for 54.77%, Industry for 28.86%, Materials for 8.94%, Communication Services for 5.21%, and Healthcare for 2.24% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December, and weights are fixed until the next adjustment unless special circumstances arise [2]

Core Viewpoint - After a 16-week period of adjustment, Huahong Semiconductor (01347) has seen a strong rebound in its stock price, reversing the downward trend in the wafer foundry sector [1] Industry Overview - The wafer foundry sector has performed well this year, with major players Huahong Semiconductor and SMIC both experiencing significant increases, with Huahong's stock rising over 60% [1] - The valuation increase in the sector is attributed to strong performance, with Huahong reporting Q1 2025 revenue of $541 million, a year-on-year increase of 17.6% [1][2] - SMIC's revenue for the same period was $2.247 billion, up 28.4% year-on-year, with a net profit of $188 million, reflecting a staggering 162% increase [1][2] Company Performance - Huahong Semiconductor has achieved double-digit revenue growth for two consecutive quarters, with Q2 guidance indicating a growth rate of 15-20% [1] - The company has a total wafer capacity of 413,000 pieces, with an 8-inch wafer revenue of $231 million and a 12-inch wafer revenue of $310 million, the latter showing a significant year-on-year growth of 40.9% [2][4] - The company has maintained a high capacity utilization rate of 102.7% for 8-inch equivalent wafers, exceeding 100% for three consecutive quarters [4] Financial Metrics - Huahong's gross margin for Q1 2025 was 9.24%, while SMIC's was significantly higher at 22.52%, indicating a substantial gap in profitability [5] - Despite lower profitability, Huahong's strong cash flow performance is notable, with a net cash inflow of $50 million in Q1, contrasting with SMIC's net cash outflow of $160 million [6] - As of March 2025, Huahong had cash equivalents of $4.08 billion, while SMIC had $4.587 billion [6] Valuation and Market Sentiment - The market has assigned a price-to-book (PB) ratio of 2.19 to SMIC, while Huahong's PB ratio is only 1.25, indicating a 75% discount in valuation [7] - Analysts have mixed views on Huahong, with some downgrading its rating due to weak return on equity projections, while others have raised target prices based on expected product price improvements [9] - Overall, the wafer foundry sector is entering a new phase of upward trends, with Huahong's low valuation and improving quarterly performance presenting significant investment opportunities [9]