Chip stocks gained momentum in afternoon trading. As of press time, HUA HONG SEMI (01347) rose 4.69% to HK$80.35; SOLOMON SYSTECH (02878) climbed 3.92% to HK$0.53; SHANGHAI FUDAN (01385) advanced 3.54% to HK$41; and SMIC (00981) increased 1.43% to HK$74.4.

On the news front, the 2025 Bay Area Semiconductor Industry Ecosystem Expo is being held in Shenzhen from October 15-17. Qiyunfang, a subsidiary of Xinkaila, made its first industry debut of two domestically-produced electronic engineering EDA (schematic and PCB) design software products with complete independent intellectual property rights. The products demonstrate performance improvements of 30% compared to industry benchmarks and can reduce hardware development cycles by 40%.

However, on the first day of the Bay Area Semiconductor Expo, Xinkaila did not showcase any lithography equipment. Staff at the company's booth stated, "We have not received notice of any new product launches, and there will be no new product releases at this exhibition."

Dongwu Securities believes that overseas restrictions on semiconductors favor the market share growth of domestic semiconductor equipment. The localization rates of core process equipment segments such as lithography, etching, and thin film deposition in domestic wafer fabs are expected to rapidly improve. Additionally, continued memory price increases, aggressive expansion of domestic advanced processes, and the development of domestic computing power all present manufacturing investment opportunities.