Understanding the Market | Chip stocks rebound across the board, reports indicate that Taiwan Semiconductor plans to raise prices for mature processes, and Capex adjustments further confirm AI's prosperity
Chip stocks rebounded across the board, with significant gains in Hua Hong Semiconductor, SMIC, and others. TSMC plans to raise prices for mature processes in early 2027 and simultaneously adjust its full-year revenue, AI demand, and capital expenditure guidance. Northeast Securities believes that the upward trend in Capex confirms the prosperity of AI, and there is also a shortage in mature processes. Domestic wafer fabs are expected to achieve profit recovery through advanced capacity expansion and price increases in mature processes
According to Zhitong Finance APP, chip stocks have rebounded across the board. As of the time of publication, Hua Hong Semiconductor (01347) rose by 15.82%, trading at HKD 165.5; Jinghe Integrated (02249) increased by 8.85%, trading at HKD 32.22; SMIC (00981) climbed by 8.24%, trading at HKD 75.5; and Shanghai Fudan (01385) rose by 6.28%, trading at HKD 26.74.
On the news front, it has been reported that Taiwan Semiconductor may raise prices for mature process chips in early 2027, marking the first price adjustment for non-advanced processes in over three years. This also indicates that the AI-driven semiconductor demand boom is spreading from areas such as GPUs and high-performance computing to power management chips and power devices in mature processes.
In addition, Taiwan Semiconductor has simultaneously raised its full-year revenue, AI demand outlook, and capital expenditure guidance. Northeast Securities pointed out that the upward trend in Taiwan Semiconductor's Capex further confirms the AI boom, and the shortage is not limited to advanced processes: AI data centers are driving increased demand for PMICs and sensors, leading to shortages in mature processes as well. Domestic wafer fabs are expected to follow two main lines: one is the expansion of advanced processes to accommodate the overflow of AI computing demand and local support; the other is the price increase in mature processes, with both capacity utilization and ASP rising to drive profit recovery, making related wafer fabs optimistic
