Market Insight | HUA HONG SEMI Surges Over 6%, TSMC's Majority of Customers Agree to Raise Outsourcing Prices, HUA HONG May Increase Prices in the Second Half of the Year

HUA HONG SEMI rose more than 6%, as of the time of publication, it rose by 6.38% to HKD 22.5, with a turnover of HKD 128 million. On the news front, Morgan Stanley pointed out that based on the supply chain survey, most of TSMC's customers have agreed to raise foundry prices in exchange for reliable supply, which will further drive TSMC's gross margin. There are reports indicating that Apple, Qualcomm, NVIDIA, and AMD, among other major manufacturers, have heavily secured TSMC's 3nm family process capacity, with a queue of customers stretching all the way to 2026. According to analysts' estimates, TSMC's gross margin is expected to climb to 55.1% in 2025; approaching nearly 60% in 2026, reaching 59.3%. In addition, driven by strong demand for AI servers and computing chips, the semiconductor industry's prosperity continues to rise, with recent industry price hikes becoming more frequent. According to the supply chain survey, most of TSMC's customers have agreed to raise foundry prices in exchange for reliable supply. Furthermore, manufacturers such as Qualcomm, HUA HONG, and Samsung have also made price adjustments, covering IC design, chip foundry, and memory chip sectors. Morgan Stanley previously stated that HUA HONG SEMI's wafer fab utilization rate has exceeded 100%, so it may raise wafer prices by 10% in the second half of the year