Chinese semiconductor firms rally on expectation of price hikes

 

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Shares of Chinese semiconductor companies staged a rally on Thursday on expectation of price hikes. In the A-share market, an index tracking the semiconductor sector compiled by Wind Information gained by 1.3%, making it the best-performing sector, compared to 1% loss for the benchmark Shanghai Composite Index. In Hong Kong, Shanghai Fudan surged by 5%, Hong Guang Semiconductor gained by 2%.

It’s reported that Qualcomm and Marvell have both notified their customers about price increases that may come into effect as early as August, joining a few chip suppliers including Intel and TSMC looking to raise their quotes despite growing concerns over demand volatility.

In addition, analysts from the International Data Corporation (IDC) said in an interview that the global chip shortage is not over yet, and the war in Ukraine continues to put a strain on supplies of important parts needed. “The semiconductor supply is not going to increase immediately. There are a lot of raw materials, gases, which were required for production of those semiconductors.”