SMIC's stock surged 5.04% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor foundry.

The rally is primarily driven by Huawei's landmark announcement of the "Tau (τ) Law," which proposes replacing traditional "geometric scaling" with "time scaling" to compress signal propagation delay and boost transistor density without relying on extreme EUV lithography processes. This paradigm shift elevates the value of mature-node manufacturing capacity, positioning SMIC, as China's leading foundry, as a primary beneficiary. Additionally, SMIC's previously announced CN¥40.6 billion acquisition of SMIC North further strengthens its expansion narrative, contributing to investor optimism.

The positive sentiment extended across the semiconductor sector, with peers like Hua Hong Semi and GigaDevice also posting notable gains during the session.