Shanghai Fudan (01385) surged nearly 7% during trading. As of press time, the stock was up 6.08%, trading at HK$40.12 with a turnover of HK$373 million.

On September 14, Fudan Microelectronics announced via its WeChat official account that the company has strengthened strategic reserves of wafers and key raw materials for its core product lines. Inventory scale has grown from approximately 600 million yuan at the end of 2020 to about 3.1 billion yuan at the end of the first half of 2025, with raw materials and work-in-progress totaling approximately 2.1 billion yuan. This has effectively enhanced supply chain stability and risk resistance capabilities, providing assurance for sustained and steady operations.

A Morgan Stanley research report indicated that Shanghai Fudan is well-prepared for supply chain disruptions. The company began wafer fabrication at local foundries since 2023 and has gradually shifted FPGA production to mainland China. The firm believes demand-side impact is limited, as overseas sales accounted for only 6% of the company's total revenue last year. The firm expects potential short-term selling pressure and maintains a target price of HK$32.8 with an "overweight" rating.