Understanding the Market | Chip Stocks Continue Recent Uptrend, Taiwan Semiconductor Raises Full-Year Growth Range to 30%, Institutions Expect Wafer Foundry Capacity Utilization Rate to Increase
Chip stocks continue to rise, INNOSCIENCE up 3.15%, Hua Hong Semiconductor up 3.07%, SMIC up 2.96%, SHANGHAI FUDAN up 1.71%. Taiwan Semiconductor raised its full-year growth range to 30%, with a net profit of nearly NT$398.3 billion in the second quarter, a year-on-year increase of 61%. Cathay Securities expects wafer foundry capacity utilization to improve, with AI chip demand driving SMIC to seize domestic substitution opportunities
According to Zhitong Finance APP, chip stocks continue their recent upward trend. As of the time of writing, INNOSCIENCE (02577) is up 3.15%, trading at HKD 45.85; Hua Hong Semiconductor (01347) is up 3.07%, trading at HKD 36.95; SMIC (00981) is up 2.96%, trading at HKD 48.65; Shanghai Fudan (01385) is up 1.71%, trading at HKD 26.7.
In news, on July 17, Taiwan Semiconductor announced its financial report for the second quarter of 2025. The data shows that in the second quarter of 2025, Taiwan Semiconductor achieved a net profit of nearly NT$ 398.3 billion, a year-on-year increase of nearly 61%, with a quarterly net profit reaching a historical high and the net profit growth rate hitting a three-year high for the same period. Taiwan Semiconductor stated at the earnings call that it has raised its full-year growth range to 30%, while capital expenditure remains unchanged at USD 38 billion to 42 billion. Taiwan Semiconductor's Chairman and CEO, C.C. Wei, stated that they have not seen any changes in customer behavior and continue to support strong AI demand from customers.
Cathay Securities pointed out that with the downstream industrial and automotive sectors beginning to replenish inventory, demand for BCD Analog is expected to grow, and wafer foundry capacity utilization is likely to continue to improve in the second quarter and the second half of the year. Additionally, as domestic advanced process technologies continue to iterate, AI chips are expected to gradually shift to domestic wafer foundries, and SMIC, as a core asset in advanced processes, is expected to welcome a broad domestic substitution space in the AI era, giving the industry an "overweight" rating
