Semiconductor stocks have recently experienced a notable surge. Notable performers include Notebook Technology, which saw a rise of 57.63%, and Macro Semiconductor, up by 5.68%. Additionally, Shanghai Fudan and SMIC reported gains of 4.7% and 3.31%, respectively, highlighting investor optimism in the sector.
The latest report from the Semiconductor Industry Association indicates a robust global demand, with worldwide semiconductor sales reaching $531 billion in August 2024. This represents a year-on-year increase of 20.6%, marking the fifth consecutive month of sales growth and establishing a new record high. Analysts suggest that the semiconductor industry is poised for a cycle of recovery, potentially boosting company performance and valuation.
China's semiconductor market has also shown significant progress, with sales in August growing by 19.2% compared to the previous year. The sustained growth over the past ten months reflects investor confidence in the industry's outlook, driven by technological advances in AI, IoT, 5G, and automotive electronics, which continue to fuel semiconductor demand.
Domestically, wafer foundries like SMIC and Hua Hong are experiencing high utilization rates, with current figures at 85.2% and 97.9%, respectively. The demand surge in consumer electronics, particularly smartphones, suggests that this trend will continue, highlighting a positive recovery trajectory for China's semiconductor sector.
In the context of US-China tech competition, Chinese semiconductor companies are accelerating their efforts in developing indigenous chips. This initiative aims to achieve supply chain independence and address potential technology bottlenecks.
Furthermore, the A-share market has drawn significant international interest, particularly in semiconductor stocks. Prestigious institutions such as Temasek, Sequoia Capital, and others are actively engaging with the market, potentially enhancing the investment outlook for the sector.
Looking ahead, market analysts forecast substantial growth in the global semiconductor market, anticipating it to reach $673 billion by 2024, with a compound annual growth rate of 8.8% through 2032. China's semiconductor market is expected to maintain a growth rate exceeding 10% annually, suggesting sustained opportunities for key players in the sector such as SMIC and Hua Hong.