AI Chip Concept Stocks Watch | HUA HONG GRACE (01347.HK) up 0.26%, UMC flags a new round of mature-node price hikes

NewTimeSpace News, on 23 September 2026, AI chip stocks traded with volatility while HUA HONG GRACE (01347.HK) strengthened. As of 13:30, the company quoted HKD 114.100, up 0.26%.

On the news front, on 21 September 2026, media reports said that capacity utilisation at several wafer foundries including UMC, PSMC and VIS was rising amid a supply shortage, with UMC flagging a new round of price increases and PSMC reported to be planning a price rise of up to 40%. According to the reports, supply chain analysis suggests this recovery in mature-node foundry is not merely a short-term boost from consumer electronics restocking but a new round of structural demand driven by AI infrastructure, compounded by the order spillover effect as TSMC gradually scales back part of its mature-node capacity; every high-performance computing chip requires large volumes of supporting mature-node chips, including power management ICs, microcontrollers (MCUs), sensors and MOSFET devices, and as AI server power consumption and voltage continue to rise, usage of such supporting chips is increasing and specifications upgrading, with 8-inch and 12-inch mature-node capacity rapidly shifting from oversupply to tightness. The reports also cited a TrendForce survey showing that wafer foundry capacity allocation is clearly tilting towards AI-related products, with 8-inch processes benefiting from incremental AI-related power semiconductor orders and production cuts by TSMC and Samsung Electronics to see capacity utilisation and foundry prices rise strongly, while 12-inch mature-node processes are expected to see mid- to long-term order transfer effects as TSMC cuts production; mature-node foundry price increases are estimated to extend into 2027. The institution also estimated that about 77% of the world's newly added 12-inch mature-node capacity in 2026 will come from mainland China, mainly covering nodes such as 28nm, 40nm and 55nm.

In addition, on 22 September 2026, at the 2026 Apsara Conference in Hangzhou, Alibaba's T-Head released its new-generation training-and-inference AI chip Zhenwu V900, whose single-chip computing performance reaches three times that of the previous generation Zhenwu M890, with 216GB of memory, an inter-chip interconnect bandwidth of 1,200GB/s and native support for FP8 and FP4 low-precision computing, covering the full range of training and inference for trillion-parameter large models; based on its proprietary ICN Switch interconnect chip, a single cluster can scale to 500,000 cards. According to the reports, the chip is scheduled for mass production in the first quarter of 2027 and for scaled deployment in Alibaba Cloud data centres. T-Head said the Zhenwu series chips have already served more than 650 enterprises, and Alibaba said that with a maturing product line and broader customer adoption it expects T-Head's annual AI chip shipments to increase substantially. On the same day, T-Head also unveiled its Yitian server CPU roadmap for the first time, with the Yitian 720 and Yitian 730 to be launched in 2027.

DFZQ believes that AI is driving demand for power-related ICs and is expected to continue lifting demand for mature-node wafer foundry; on the demand side, incremental demand from AI server power ICs, together with the trend of IC localisation in mainland China, is lifting demand for BCD and PMIC from local foundries, and capacity utilisation of 8-inch lines at some foundries has already risen markedly since mid-2025; entering 2026, computing power and power consumption of terminal applications such as servers and edge AI are expected to continue rising, further stimulating growth in demand for power ICs required for power management.

Goldman Sachs believes that, driven by capacity expansion for memory and advanced nodes, China's semiconductor capital expenditure is expected to grow by 13%, 15% and 15% in 2026 to 2028 respectively; the institution estimates that the compound annual growth rate of China's potential AI chip market size from 2025 to 2030 will be 142%, 69% and 6% under bull, base and bear scenarios respectively; generative AI remains the main driver, boosting demand for embedded flash, NOR flash and power management ICs.

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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