Semiconductor Manufacturing International Corporation (SMIC), China's largest chip foundry, saw its stock price surge 5.03% in intraday trading on Wednesday, outpacing its earlier gains and reaching new highs. The impressive rally comes amid a broader uptick in the semiconductor sector, driven by multiple positive factors including rising wafer prices, favorable government policies, and increased adoption of domestic chips by major tech companies.

The surge in SMIC's stock price is part of a larger trend in the chip industry. Other semiconductor stocks also demonstrated robust activity, with ASMPT jumping 6.33% and HG SEMI gaining 1.72%. This sector-wide rally is fueled by intensifying expectations for semiconductor silicon wafer price increases, as evidenced by recent stock price surges of overseas wafer manufacturers like GlobalWafers and SUMCO.

Adding to the bullish sentiment, a recent research report from Dongguan Securities highlighted strong policy support for the localization of AI computing chips. This aligns with news that major Chinese tech giants such as ByteDance, Alibaba, and Tencent are increasing their capital expenditures and actively adopting mainstream domestic chips. Reports of Alibaba and Baidu utilizing internally developed chips for AI large model training to replace some Nvidia chips further underscore the accelerating development of the domestic computing power ecosystem. As a leading chip manufacturer in China, SMIC is well-positioned to benefit from these trends, particularly in advanced process foundry services and AI-related chip production.