HK Stock Market Move | Chip stocks rose in early trading, domestic alternatives are expected to accelerate. Institutions said there is still a considerable space for domestic alternatives in the multi-link industrial chain.

Chip stocks rose in early trading. As of press time, SHANGHAI FUDAN (01385) rose by 8.61% to 24.6 Hong Kong dollars; HUA HONG SEMI (01347) rose by 6.6% to 27.45 Hong Kong dollars; ASMPT (00522) rose by 5.76% to 46.85 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose by 4.11% to 39.25 Hong Kong dollars. On the news front, on April 3, the Japanese government announced export controls on more than a dozen semiconductor-related items. It is reported that Japan is one of the major exporting countries in the global semiconductor industry chain, and this export control covers key materials and equipment components such as photoresist, high-purity hydrogen fluoride, and large silicon wafers, which are weak links in domestic semiconductor manufacturing. EB SECURITIES pointed out that Japan's further upgrade of semiconductor sanctions will also accelerate the pace of domestic substitution. Cinda pointed out that the Sino-US tariff friction may disrupt the mainland's semiconductor industry chain, and there is still considerable room for domestic substitution in various links. The bank pointed out that the tariff friction between China and the United States may prompt end customers to shift their production to mainland China, and downstream manufacturers may gradually transfer the products sold to the mainland to local production in order to avoid cost pressure. On the other hand, the tariff impact on the import of domestic high-end chips (AI chips) may further increase the demand for advanced process foundries in the mainland.