Semiconductor stocks are among the biggest losers. As of the time of writing, Semiconductor Manufacturing International Corporation (00981) is down 7.08%, trading at 29.55 HKD; HUA HONG SEMI (01347) is down 5.08%, trading at 20.55 HKD; SOLOMON SYSTECH (02878) is down 5.05%, trading at 0.47 HKD.
According to Zhito Finance APP, semiconductor stocks experienced significant declines. As of the time of publication, Semiconductor Manufacturing International Corporation (00981) fell by 7.08% to HKD 29.55; HUA HONG SEMI (01347) fell by 5.08% to HKD 20.55; SOLOMON SYSTECH (02878) fell by 5.05% to HKD 0.47; SHANGHAI FUDAN (01385) fell by 4.5% to HKD 14.44.
In the news, on December 23, the Biden administration announced a 301 trade investigation into mature process semiconductors made in China, which may lead to additional US tariffs on chips from China, including those for Autos, Washing Machines, and telecommunications equipment, with the matter to be handed over to the Trump administration for completion by January 25. Previously, Biden had already imposed a 50% tariff on Chinese semiconductors, which is set to take effect on January 1. Guosen believes that ongoing overseas restrictions will further accelerate the domestic semiconductor autonomy. Meanwhile, as domestic production lines stabilize and yield improves, domestic mature process semiconductors possess certain cost advantages, and the share of cost-effective domestic semiconductors will continue to rise.
