Hong Kong-listed semiconductor stocks led market declines during Wednesday's trading session. Hongguang Semiconductor (06908.HK) slid 3.51% to HK$0.55, while Beken Corporation (02149.HK) fell 2.87% to HK$55.90. Industry heavyweight SMIC (00981.HK) dropped 2.37% to HK$45.35, and Hua Hong Semiconductor (01347.HK) retreated 1.28% to HK$34.75.

The sector faced headwinds following NVIDIA's announcement on July 15 regarding the resumption of H20 chip shipments to China. The chipmaker stated it would reintroduce its fully compliant GPU for the Chinese market and has submitted applications to restart H20 sales. Founder and CEO Jensen Huang confirmed that US authorities have assured NVIDIA of licensing approval, with deliveries expected to commence imminently. Huang simultaneously unveiled a new NVIDIA RTX PRO GPU featuring complete compatibility.

Market focus remains sharp on foundries' second-quarter performance outlooks. SMIC previously guided for a 4%-6% quarter-on-quarter revenue decline in Q2, attributing this to unexpected facility issues affecting production lines, coupled with yield rate challenges stemming from equipment and process upgrades. These factors have pressured SMIC's average selling prices (ASP), consequently impacting quarterly guidance.

Meanwhile, Hua Hong Semiconductor projects Q2 revenue between US$550 million and US$570 million, with a midpoint of US$560 million. This represents an 8.3% year-on-year increase and 3.5% sequential growth. Industry analysts suggest that expanding revenue scale could help mitigate depreciation pressures going forward. Potential price recoveries may further enhance profitability across the semiconductor manufacturing sector.