On February 19th, semiconductor chip stocks exploded across the board!

Weil Shares hit the daily limit up, Huahong Company rose more than 17% to a new historical high, Di'ao Microelectronics, Luwei Optoelectronics, Dawei Shares and other stocks were closed, and multiple stocks such as Linwei Nano, Qingyi Optoelectronics, and Guoke Microelectronics rose more than 10%!

It is reported that the strengthening of the chip sector has become an important driving force for the rise of the stock index. The stock price of Huahong Company, a leading subdivision company, once approached the limit up by nearly 20%, and closed with a sharp increase of 17.96%, setting a new historical high during the trading session. The total market value of the company reached 100 billion yuan.

Analysts believe that Huahong Company achieved a month on month increase in sales revenue and net profit in the third quarter of 2024, and its capacity utilization rate also reached full production in all aspects. We are optimistic about the recovery trend in the semiconductor industry in the future, and coupled with the orderly entry of the company's 12 inch production line in Wuxi into the trial production and process validation stage, it is expected that the production capacity of 20000 pieces per month will be released by the end of 2025, and the company's future performance is expected to continue to recover.

Industry insiders have stated that the launch of domestic large models such as DeepSeek has sparked a wave of adaptation to large chips from companies like Huawei Ascend, Haiguang Information, Cambricon, and Loongson Zhongke, promoting the ecological development of "domestic large models+computing chips".

In recent years, the semiconductor industry, as a representative of high-tech, has received strong support from national policies and active investment from local governments. The semiconductor sector in the A-share market is showing a cyclical upward trend.

The World Semiconductor Trade Statistics Organization released a report showing that the semiconductor market grew to $166 billion in the third quarter of 2024, an increase of 10.7% compared to the second quarter of 2024. The global semiconductor market is experiencing a strong recovery, and the industry is entering an upward cycle.

Among listed companies, the development of semiconductor companies also demonstrates signs of industry recovery. In the first half of 2024, the net profit of 57 companies increased by nearly 200% year-on-year. Among them, 10 companies are expected to report a net profit of over 400 million yuan in the first half of 2024, with North Huachuang and Weir Group's net profits reaching 2.96 billion yuan and 1.408 billion yuan respectively.

Currently, China has been the world's largest semiconductor market for several consecutive years, occupying nearly one-third of the global market share. In the first three quarters of 2024, domestic semiconductor sales reached 135.8 billion US dollars, accounting for nearly 30% of the global total. The government has provided significant support to the semiconductor industry, gradually promoting the scale and high-end development of local semiconductor manufacturing and supporting industrial chains through industry policies, tax incentives, and talent cultivation.*Disclaimer: The above content is reproduced on the WeChat official account of the semiconductor industry circle, which does not represent the views and positions of the company, but only for exchange and learning. If you have any questions or objections, please contact us.