Chip stocks continued their downtrend today. As of the latest update, <01347>HUA HONG SEMI fell by 7.5% to HKD 70.25, <01385>SHANGHAI FUDAN decreased by 6.43% to HKD 39, <02878>SOLOMON SYSTECH dropped 1.96% to HKD 0.5, and <00981>SMIC was down 1.87% to HKD 73.45. According to reports from media sources, which cited a U.S. official and three individuals informed by the U.S. government, the White House is considering regulations on products that use U.S. software for production and are exported to China. This news further contributed to the decline in U.S. stocks, particularly in EDA software companies. Sources indicated that this plan is not the only option being considered and may not be implemented. Notably, NVIDIA has confirmed its complete withdrawal from the Chinese AI chip market, and Micron plans to halt the supply of server chips to China. A report from CICC stated that the U.S.-China semiconductor and rare earth export controls signify a shift in trade friction into a confrontation over core technologies and raw materials. The U.S. export controls on semiconductors will expedite the domestication of China's industrial chain and realize local replacements. According to China Merchants Securities, under the backdrop of the U.S. intensifying export controls, the acceleration of China's independent control process is expected, and the anticipated expansion of domestic advanced production lines in 2026 is likely to boost positive expectations for orders in the domestic equipment and components sector alongside the process of local replacement.