Market Insight | SMIC Surges Over 5%, Leading Chip Stocks; Taiwan Semiconductor Raises Prices as Foundries Reach Full Capacity, Bringing Price Increase Elasticity
Chip stocks continue recent gains, as of the time of writing, SMIC rose by 4.98% to HKD 19.8; Shanghai Fudan rose by 4.39% to HKD 13.78; HUA HONG SEMI rose by 4.29% to HKD 25.55. On the news front, according to media reports, in a situation of insufficient supply to meet demand, Taiwan Semiconductor will raise prices for 3nm, 5nm advanced processes and advanced packaging. Specifically, Taiwan Semiconductor's 3nm foundry prices may increase by over 5%, while advanced packaging annual prices next year may rise by 10%-20%. It is reported that the capacity utilization rates of major wafer fabs have significantly increased, with many manufacturers operating at full capacity, and some even exceeding 100%. Industry insiders believe that the continuous improvement in wafer foundry utilization rates and some foundries operating at full capacity will bring elasticity to price increases in the future. Morgan Stanley recently stated that HUA HONG SEMI's wafer fab is currently operating at over 100% capacity, and it is expected that wafer prices may be raised by 10% in the second half of this year
According to the information from the Wise Finance APP, chip stocks continue their recent upward trend. As of the time of publication, SMIC (00981) rose by 4.98% to HKD 19.8; Shanghai Fudan (01385) rose by 4.39% to HKD 13.78; HUA HONG SEMI (01347) rose by 4.29% to HKD 25.55.
On the news front, media reports indicate that in a situation of insufficient supply to meet demand, Taiwan Semiconductor will raise prices for its 3nm and 5nm advanced processes and advanced packaging. Specifically, the price increase for Taiwan Semiconductor's 3nm foundry services may be over 5%, while the annual price increase for advanced packaging next year is expected to be between 10% and 20%.
It is reported that the capacity utilization rates of major wafer fabs have significantly increased, with many manufacturers operating at full capacity, and in some cases, even exceeding 100% utilization. Industry insiders believe that the continuous improvement in wafer foundry utilization rates and the full capacity of some foundries will bring elasticity to price increases in the future. Morgan Stanley recently stated that the wafer fab utilization rate of HUA HONG SEMI has already exceeded 100%, and it is expected that wafer prices may be raised by 10% in the second half of this year