AI Chip Concept Stocks Watch | Hua Hong Grace (01347.HK) Slumped Sharply, Recently Announced Construction of a Wafer Foundry Line with Planned Monthly Capacity of 55,000 Wafers

NewTimeSpace (newtimespace.com) News, September 4, 2026—The chip theme continued to come under pressure, with Hua Hong Grace (01347.HK) slumping sharply. As of 13:40, the stock was quoted at HK$109.100, down 8.93%.

On the news front, Hua Hong Grace recently announced that the company and its wholly-owned subsidiary, Shanghai Hua Hong Grace Semiconductor Manufacturing Co., Ltd., intend to jointly increase the capital of Wuxi Hua Hong Grace Phase III Semiconductor Co., Ltd. together with three other companies including Wuxi Xihong Guoxin Phase II Investment Co., Ltd., to build a 12-inch specialty-process wafer foundry line with a planned monthly capacity of approximately 55,000 wafers.

Guosheng Securities pointed out that the capabilities of domestic chips have continued to improve, narrowing the generation gap with overseas chips. The adoption of domestic chips by internet and intelligent computing centers has accelerated, and domestic computing power demand is shifting faster toward local manufacturers. The expansion of application scenarios and the accumulation of experience have effectively driven the iterative upgrading of chip capabilities, and a positive R&D feedback loop is gradually taking shape.

HUA HONG GRACE(01347.HK)Specializes in specialty process wafer foundry, offering customized manufacturing of power discretes, embedded non-volatile memory, analog and power management ICs. Its 8-inch and 12-inch production lines serve automotive, industrial control and data center power management applications. The company holds multiple automotive-grade quality certifications and provides mass production foundry services to various domestic and international automotive clients. Its overall capacity utilization has remained high over an extended period.

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