Semiconductor stocks have risen sharply; as of the time of writing, $HG SEMI (06908.HK)$up 6.9%, at 0.62 HKD;$SMIC (00981.HK)$Increased by 5.96%, closing at 26.65 Hong Kong dollars; $HUA HONG SEMI (01347.HK)$Increased by 4.99%, closing at 21.05 Hong Kong dollars; $SHANGHAI FUDAN (01385.HK)$Rising by 4.32%, closing at 15.46 Hong Kong dollars.

On the news front, media cited informed sources as saying that the Biden administration is considering further restrictions on the sale of semiconductors equipment and ai memory chips to China, but will not take some of the more stringent measures previously proposed. These restrictions could be announced as early as next week. Tianfeng Securities pointed out that the US may impose new chip controls on China, once again emphasizing investment opportunities in domestic semiconductor alternatives. The firm emphasizes the urgent demand for domestic semiconductor alternatives, large market space, and potential catalysts from external (international political instability) and internal (expansion of major factories, policy support, etc.) factors catalyzing the sector. It is determined that the substitution of domestic semiconductor equipment, materials, EDA/IP by domestic alternatives is expected to accelerate, and investment opportunities in the sector are worth paying attention to.

Hua Long Securities pointed out that semiconductors are a crucial area of competition for major nations, and geopolitical tensions exacerbate the shortage of chip supply, making it urgent to achieve autonomy and control. In addition, with the possibility of increased U.S. technological embargoes and trade sanctions against China after Trump's election, it is not only imperative for China's semiconductor industry to achieve self-sufficiency and controllability, but it will also accelerate continuously. HTSC stated that if the scope of semiconductor export restrictions expands further, it may have a certain impact on China's semiconductor industry in the short term, but in the long run, it may promote domestic substitution.

Editor / jayden