Huawei Mate 60 Pro Launch Triggers 5% Surge in SMIC and Other Stocks

On August thirtieth, influenced by Huawei‘s sudden launch of the Mate 60 Pro smartphone, the semiconductor sector in A-shares shortly surged after the market opened. V-Test Technology and Maxic Technology each rose greater than 10%, whereas Leadyo IC Testing, Vanchip, XDLK, Semiconductor Manufacturing International Corporation (SMIC), and Hua Hong Company all rose greater than 5%.

Just yesterday, Huawei’s newest flagship telephone Mate 60 Pro quietly went on sale on the Huawei on-line retailer and some offline flagship shops, with a beginning worth of 6999 yuan ($960). The official web site exhibits that the primary batch of products has been bought out, and pre-orders are presently accessible.

Of notice, Huawei has not beforehand disclosed any details about the smartphone chip and has not indicated whether or not this can be a 5G telephone. On August twenty ninth, many individuals bought this telephone at some Huawei shops. User checks have proven that its obtain pace exceeds 500Mbps (megabits per second) – solely 5G telephones can obtain such obtain speeds – whereas the utmost obtain pace of 4G is barely 100Mbps. In addition, the Mate 60 Pro helps satellite tv for pc calls and modifying satellite tv for pc data.

SEE ALSO: Huawei Mate 60 Pro Hits Early Sale, and Sells Out Upon Listing

Prominent analyst Guo Mingji believes that the Mate 60 Pro shows three main funding tendencies: first, the localization of semiconductors, primarily in RF and power-related areas. Benefiting firms embrace Semiconductor Manufacturing International Corporation (wafer foundry), Vanchip (L-PAMiD), Sg Micro Corp (energy provide), Southchip (energy provide), and Maxic Technology (wi-fi charging – in collaboration with JCST (Close Beta); second, main satellite tv for pc communication suppliers amongst Android manufacturers. Benefiting firms embrace Hwa Creat (chips); third, enhancing the common specs of high-end fashions’ optical techniques. Benefiting firms embrace Largan (lenses), Sunny Optical Technology (modules), Will Semiconductor (CIS), SmartSens(CIS), and B.L Electronics(VCM).

But Huawei’s self-developed chips nonetheless face many challenges, equivalent to yield fee and help for superior semiconductor tools. Guo Mingchi additionally talked about that there are nonetheless some semiconductor elements that can not be localized, primarily together with filters, SOI (Silicon on Insulator), and gallium arsenide.

Apart from Huawei, one other main smartphone firm Apple has additionally introduced information of a brand new product. They acknowledged that they are going to maintain a particular occasion at 1:00 am on September thirteenth Beijing time, with the theme “Curiosity Above All”. It is speculated that this launch occasion will introduce the brand new technology iPhone 15 sequence, in addition to the brand new technology Apple Watch S9 and second-generation Apple Watch Ultra. These new merchandise are anticipated to be formally accessible on the market on September twenty second.

In the private laptop market, chip large Intel will even launch its newest processor chips for the buyer market in September, selling the iteration and replace of non-public computer systems. With the arrival of the back-to-school season, there’s a sure improve in private laptop gross sales, which can also be a conventional peak season for offline and on-line retailers. Previously, Interface News reporters noticed at this 12 months’s Bilibili World and ChinaPleasure exhibitions held throughout the summer time that gaming laptops geared up with Intel’s newest Core high-end processors and concentrating on younger pupil teams have been in style. Gaming computer systems are additionally a significant spotlight in the private laptop market.

From this angle, the intensive launch of high-end smartphones and the entry into an iterative cycle in the private laptop market are anticipated to drive a restoration in upstream wafer foundries.

In the primary half of the 12 months, mainland China’s main wafer foundries have been affected by a sustained downturn in the buyer market and stock discount falling in need of expectations. Semiconductor Manufacturing International Corporation (SMIC), CEO Zhao Haijun brazenly admitted that though each China and the remainder of the world have resumed regular financial and social operations, demand for digital merchandise is decrease than anticipated. Inventory ranges for built-in circuit merchandise stay excessive, market confidence is missing, and chip firms nonetheless want to chop bills. From an total market perspective, the cell phone and shopper electronics sectors are nonetheless experiencing an innovation bottleneck with no new highlights. Demand is lowering moderately than growing, substitute cycles are lengthening, whereas segments equivalent to private computer systems, industrial purposes, and new power autos are progressively approaching supply-demand equilibrium.

Zhao Haijun believes that the chip trade has already hit backside, however nonetheless faces many challenges together with slower destocking than anticipated, lack of momentum in demand progress, and geopolitical influences. “Currently, China stays the biggest shopper marketplace for built-in circuits and discrete gadgets globally, accounting for 35%-40% of the worldwide market. Considering the adjustments in the commercial chain sample and useful resource reallocation, it’s foreseeable that future competitors will grow to be extra intense.

Another main home wafer foundry, Hua Hong Semiconductor Limited, was listed on the Science and Technology Innovation Board on August seventh. The essential enterprise of Hua Hong Semiconductor Limited consists of energy gadgets, embedded non-volatile reminiscence, analog chips, and different merchandise that don’t depend on superior course of know-how. The firm’s disclosed efficiency for the second quarter of 2023 confirmed a gross sales income of $631.4 million, a year-on-year improve of 1.7%. The web revenue attributable to shareholders of the dad or mum firm was $78.5 million, a year-on-year lower of 6.4%. The gross margin was 27.7%, a lower of 5.9 share factors in comparison with the identical interval final 12 months however greater than the earlier quarter’s steering.

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