Tracking the concept of Hong Kong stocks | Rebalancing of supply and demand in the Chinese semiconductor market Benefits for leading chip companies (with concept stocks)

Market news, it is reported that TSMC will raise the prices of its products at its US wafer fab by 30%. The Trump administration has initiated a national security investigation into imported drugs and semiconductors under Section 232 of the Trade Expansion Act, which may further escalate the comprehensive trade war initiated by Trump. Two notices released by the US Department of Commerce show that investigations will begin on the impact of imports of "semiconductors and semiconductor manufacturing equipment" and "drugs and drug ingredients, including finished drugs," on US national security. The investigation will study the current and projected demand for pharmaceuticals and semiconductor products, the domestic production capacity to meet the demand, and the possibility of export restrictions. Bank of America Securities believes that the supply and demand in the Chinese semiconductor market are rebalancing, leading to an improved pricing environment for chip foundries. Soochow points out that the increase in import tariffs in China is beneficial for further increasing the localization rate of semiconductor equipment. CICC believes that the US "reciprocal tariffs" policy is impacting the technology hardware industry, and external tariffs bring uncertainty. According to the latest exemption list from the US Customs on April 13, certain goods are exempt from "reciprocal tariffs," including smartphones, computers, switches, and other products, with China being included as well. The applicable tariffs return to the level before "reciprocal tariffs." However, the industry still faces uncertainty from external tariffs. Despite the uncertainty from external tariffs, the fundamental nature of the industry and the core competitiveness of companies at the industry level remains unchanged. Considering the long and complex industry chain of the electronic manufacturing industry, the short-term shift of the global consumer electronics manufacturing landscape to the US is difficult. In the long run, the "China plus other countries" consumer electronics manufacturing landscape still remains attractive. Additionally, opportunities for domestic substitution in the semiconductor design and manufacturing sectors are favored under the current China tariff policy. Leading companies in the chip sector listed on the Hong Kong stock market: HUA HONG SEMI (01347), Semiconductor Manufacturing International Corporation (00981), SHANGHAI FUDAN (01385), etc.