AI Chip Concept Stocks Insight | HUA HONG GRACE (01347.HK) down 4.45%, 8-inch capacity cuts lift mature-node foundry cycle

NewTimeSpace News, on 26 October 2026, AI chip stocks pulled back, and HUA HONG GRACE (01347.HK) weakened. As of 13:19, the company quoted HKD 64.450, down 4.45%.

On the news front, on 21 October 2026 industry observation showed that global 8-inch wafer capacity will shrink 2.4% in 2026, that the 48V high-voltage power architecture of AI servers is driving a surge in demand for power management chips, and that players generally hold about six months of order visibility; capacity in the mainland's 12-inch mature nodes is still expanding, with SEMI expecting mainland 12-inch wafer capacity to reach 3.21 million wafers per month in 2026, or about one third of the global total.

In addition, HUA HONG plans to hold a board meeting on 5 November 2026 to approve its third-quarter results, and to disclose third-quarter results and hold an earnings call after market close the same day. Goldman Sachs noted earlier that the company's third-quarter gross margin guidance of 16% to 18% is above its forecast of 15.3% and the market's 16.5%, while the mid-point of the revenue guidance of USD 775 million is 11% and 6% below its own and the market's expectations respectively.

GUOTAI HAITONG SECURITIES noted that generative AI investment and customer strategy will drive strong demand for embedded and standalone non-volatile memory and power management ICs; while higher depreciation and initial integration costs will weigh on near-term profitability, the continuous expansion of 12-inch manufacturing capacity is expected to bring scale effects and improve operating leverage over the long term.

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.