AI Chip Concept Stocks Watch | HUA HONG GRACE (01347.HK) down 7.16%, 8-inch foundry capacity seen shrinking two years in a row

NewTimeSpace News, on 15 October 2026, AI chip shares traded with a correction while HUA HONG GRACE (01347.HK) weakened. As of 13:41, the company quoted HKD 77.100, down 7.16%.

On the news front, the company has no recent news of its own; within the sector, on 15 October 2026, market research firm Sigmaintell forecast that average capacity utilisation across major global wafer fabs will reach about 91% in the fourth quarter of 2026, with utilisation at foundries generally high and wafer foundry prices trending upwards amid rising energy and material costs. Among process nodes, 8-inch lines remain at full load on demand for AI-related power management ICs and power devices, with order visibility generally approaching six months, and the 48V high-voltage power management ICs used in AI servers still predominantly produced on 8-inch processes; on the supply side, manufacturers such as TSMC and Samsung have cut some 8-inch capacity, and global 8-inch wafer foundry capacity is expected to decline about 6% year on year in 2026 and a further 2% in 2027. On pricing, nodes at 55 nanometres and above have stronger upward momentum on AI peripheral application demand, while price increases at 28-nanometre and 40-nanometre nodes are relatively moderate.

In addition, on 14 October 2026, GLOBALFOUNDRIES announced that it has been selected as the technology provider and operator of two new wafer fabs under a joint US-Japan initiative, expanding with two 12-inch fabs next to its existing site in Malta, New York, with a total investment ceiling of about USD 21 billion and expected additional annual capacity of 1.8 million wafers. GLOBALFOUNDRIES also reached an agreement with the US government to reallocate USD 955 million in subsidies for silicon photonics, silicon germanium and advanced packaging capacity at its Malta, New York and Burlington, Vermont sites to address communications infrastructure and data centre demand.

CLSA believes that China's semiconductor industry continued to be driven by AI demand and the localisation trend in the third quarter of 2026, with order growth at AI PCB, wafer foundry, equipment and AI computing chip companies remaining solid, capacity utilisation high and profitability continuing to improve; while tight upstream component supply and lengthening lead times are dragging on near-term delivery, the upstream supply-demand balance is expected to improve gradually from the fourth quarter through 2027. Within that, wafer foundry capacity utilisation remains high and average selling prices are rising quarter by quarter on AI-related chip demand, overseas order reshoring and local manufacturing, but new capacity investment and rising depreciation at advanced nodes will constrain further margin improvement.

GUOSEN SECURITIES believes that domestic AI computing chips are entering a phase of volume ramp-up, and that analogue chips and power devices based on mature nodes with relatively diversified downstream demand are in a cyclical recovery, both benefiting from AI-related power demand.

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.