Group 1 - Semiconductor stocks are experiencing significant declines, with notable drops including SMIC down 4.17% to HKD 57.5, Hua Hong Semiconductor down 3.56% to HKD 46.58, and Shanghai Fudan down 3.19% to HKD 32.74 [1] - Hua Hong Semiconductor announced plans to acquire 97.5% of Huahong Micro through a combination of issuing shares and cash, while SMIC is planning to issue A-shares to acquire a 49% minority stake in SMIC North [1] - Dongxing Securities highlights that the frequent asset consolidation events among leading semiconductor companies reflect the national technology strategy, aiming to enhance China's high-tech industry through appropriate market capitalization [1] Group 2 - Minsheng Securities suggests that SMIC's acquisition of SMIC North could significantly increase the parent company's net profit, addressing the exit demands of major shareholders like the Big Fund Phase I, which holds a 32% stake and is nearing its exit period [1] - The Big Fund Phase I was established nearly 11 years ago and is currently in an "extension period," indicating strong exit demands from shareholders [1] - The expansion of semiconductor wafer manufacturing projects is commonly financed through external funding for subsidiary projects, with the acquisition being completed through a combination of share issuance and cash [1]