①What are the reasons for SMIC's strong performance? ②How do institutions view the subsequent development of the semiconductor industry?
Today, some semiconductor stocks in the Hong Kong stock market showed a strong upward trend. As of the time of writing, $INNOSCIENCE (02577.HK)$ rising more than 8%, $SMIC (00981.HK)$ Up nearly 3%, $HUA HONG SEMI (01347.HK)$ Surged over 1%.
NVIDIA leads the 800V DC architecture revolution, sparking an upgrade wave in AI computing infrastructure.
To support the upcoming 'Vera Rubin' architecture and 'Kyber' system in 2027 – a single cabinet integrating 576 GPUs with a power density of up to 1 megawatt – NVIDIA recently announced collaboration with more than ten ecosystem partners, including CoreWeave and Oracle, fully transitioning to an 800-volt DC power architecture. This technological leap far exceeds the load limit of the current mainstream 415-volt AC architecture, marking a new phase of ultra-high density and high energy efficiency for AI data centers.
Goldman Sachs pointed out that this transformation will profoundly reshape the capital expenditure structure of data centers: from transformers, circuit breakers, cables to liquid cooling systems, the entire power and thermal management supply chain faces mandatory technological upgrades, further widening the infrastructure financing gap. Investors are reassessing the competitive landscape in the capital goods sector, seeking the 'true winners' in this new technology cycle.
It is worth noting that on August 1, 2025, Innoscience, a leading domestic enterprise in gallium nitride power semiconductors, $INNOSCIENCE (02577.HK)$ announced that it has become an official supplier for NVIDIA's 800V DC architecture, marking the formal entry of China's third-generation semiconductor companies into the core supply chain of global AI computing infrastructure.
SMIC accelerates the integration of advanced process assets.
In addition to Innoscience being boosted by overseas positive developments, $SMIC (00981.HK)$ last night, SMIC announced that the company plans to issue shares to five shareholders of SMIC Northern, including the National Integrated Circuit Industry Investment Fund, to acquire their combined 49.00% stake in SMIC Northern at a price of approximately 40.601 billion yuan. SMIC Northern, as a subsidiary of SMIC, focuses on 12-inch integrated circuit wafer foundry services and various advanced process platform services.
This transaction will enhance the listed company’s control over core assets, strengthen internal synergies, further optimize asset quality, and support long-term strategic development. The announcement clearly states that the main business scope of the company remains unchanged before and after the transaction.
On the same day, SMIC also disclosed that its wholly-owned subsidiary, SMIC Holdings, signed a new joint venture contract and capital increase agreement with the National Integrated Circuit Fund and the second phase of the National Integrated Circuit Fund, revising the original joint venture terms. Accordingly, the registered capital of SMIC South will increase from USD 6.5 billion to USD 10.0773 billion.
Institution predicts that leading semiconductor companies will enter a dual recovery window for performance and valuation.
Guotai Junan believes that as the global semiconductor cycle bottoms out and rebounds, coupled with dual support from domestic policies and funding, manufacturing leaders represented by SMIC will enter a dual recovery window for performance and valuation.
Huatai Securities further emphasized that the wave of investment in AI-driven computing infrastructure has entered an accelerated phase, and Chinese wafer foundries possess long-term allocation value under the logic of supply chain security.
Bank of America analyst Vivek Arya also forecasted that global semiconductor industry revenue will grow by 30% year-over-year in 2026, surpassing a total scale of one trillion US dollars.
He also pointed out that for AI data centers, the potential market size in this field will exceed 1.2 trillion US dollars by 2030, with a CAGR of an impressive 38%. The market opportunity for AI accelerators alone will reach 900 billion US dollars.
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Editor/KOKO