On July 7, SMIC fell 3.1% in regular trading, trading at HK$73.5/share, with turnover of HK$6.242 billion. The decline came as the chip sector remained under sustained selling pressure driven by persistent market concerns over computing power oversupply.

The current round of weakness traces back to reports that Meta is preparing to sell idle AI computing capacity to external customers through a new cloud business initiative. The market interpreted this move as a signal of industry overcapacity, triggering a sharp sell-off in the Philadelphia Semiconductor Index of over 6%, which cascaded into a global chip stock rout. Some institutions have noted that Meta represents an isolated case of insufficient model capability combined with redundant computing infrastructure buildout, rather than a systemic oversupply issue. However, short-term sector sentiment remains suppressed.

As a leading domestic wafer foundry, SMIC has declined alongside the broader sector for multiple consecutive trading sessions. Within the Semiconductors sector, HUA HONG GRACE rose 1.18%, while GIGADEVICE fell 8.61%, MONTAGE TECH fell 8.49%, BIREN TECH fell 2.23%, and ILUVATAR COREX fell 2.24%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)