Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

SMIC (Semiconductor Manufacturing International Corp) / Equity Bottom-Up

SMIC (Semiconductor Manufacturing International Corp) (688981 CH)

SMIC (Semiconductor Manufacturing International Corp)

<ul>
<li>SMIC last week reported second quarter revenues of just over $3 billion, up 19.7% QoQ, up 36% YoY and handily beating the forecasted 15% growth at the midpoint.</li>
<li>Gross margin was 25.3%, up 5.2 percentage points QoQ and up 4.9 points YoY. The significant improvement here was also attributed to both ASP increases a more favourable product mix.</li>
<li>SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on a comparable basis, should be around 40%.</li>
</ul>


SMIC last week reported second quarter revenues of just over $3 billion, up 19.7% QoQ, up 36% YoY and handily beating the forecasted 15% growth at the midpoint.
Gross margin was 25.3%, up 5.2 percentage points QoQ and up 4.9 points YoY. The significant improvement here was also attributed to both ASP increases a more favourable product mix.
SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on a comparable basis, should be around 40%.


SMIC Q2 2026. Record Quarter & “AI Companion Chip” Demand Is Enormous

Thematic (Sector/Industry)

<ul>
<li>Huawei introduced the “Tau Scaling Law” under which chip designers optimise for the time taken for elements of a chip to communicate, rather than for the space between transistors. </li>
<li>Huawei’s next-generation Kirin SoC, due autumn 2026, will be the first commercial chip to fully adopt the resulting architecture, which Huawei is calling “LogicFolding.”</li>
<li>Huawei chips designed under this framework will deliver transistor density equivalent to a 1.4nm process by 2031, three years after TSMC’s publicly stated 2028 timeline for its A14 (1.4nm) node.</li>
</ul>


Huawei introduced the “Tau Scaling Law” under which chip designers optimise for the time taken for elements of a chip to communicate, rather than for the space between transistors. 
Huawei’s next-generation Kirin SoC, due autumn 2026, will be the first commercial chip to fully adopt the resulting architecture, which Huawei is calling “LogicFolding.”
Huawei chips designed under this framework will deliver transistor density equivalent to a 1.4nm process by 2031, three years after TSMC’s publicly stated 2028 timeline for its A14 (1.4nm) node.


Huawei’s “Tau Scaling Law” and “LogicFolding”. Desperation, A Genuine Breakthrough Or Both?

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market continues in an upward trend after breaking resistance at 27100 last month.  The next resistance level is 28000.  Southbound flows have accelerated over the last week. </li>
<li>The energy, conglomerates, and property sectors outperformed the materials sector in 2026.  Momentum and value have been the top factors for performance YTD.</li>
<li>
<a href="https://www.smartkarma.com/entities/zhejiang-sanhua-intelligent-controls-co-ltd" target="_blank" data-smartkarma-citation="entities:45277:1" rel="noopener">Zhejiang Sanhua Intelligent Controls (2050 HK)</a> was initiated with OUTPERFORM at Shenwan Hongyuan Research.  The manufacturer of air-conditioning and refrigeration components has expanded into energy storage, automotive thermal management, and robotics.
</li>
</ul>


Hong Kong market continues in an upward trend after breaking resistance at 27100 last month.  The next resistance level is 28000.  Southbound flows have accelerated over the last week. 
The energy, conglomerates, and property sectors outperformed the materials sector in 2026.  Momentum and value have been the top factors for performance YTD.

Zhejiang Sanhua Intelligent Controls (2050 HK) was initiated with OUTPERFORM at Shenwan Hongyuan Research.  The manufacturer of air-conditioning and refrigeration components has expanded into energy storage, automotive thermal management, and robotics.



BUY/SELL/HOLD: Hong Kong Market Update (February 10)

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>Government stabilisation measures kick in as tariff war starts to bite</li>
<li>Can the HK and China markets continue their bull run as markets dislocate?</li>
<li>Is it time to selectively get back into the Chinese tech sector?</li>
</ul>


Government stabilisation measures kick in as tariff war starts to bite
Can the HK and China markets continue their bull run as markets dislocate?
Is it time to selectively get back into the Chinese tech sector?


Hong Kong Market Strategy - Trade and Portfolio Ideas Amidst the Volatility

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-kelun-biotech-biopharm" target="_blank" data-smartkarma-citation="entities:40071:1" rel="noopener">Sichuan Kelun-Biotech Bio (6990 HK)</a>, <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Ind. (669 HK)</a>, <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Hldgs (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> have a very high reliance on the US market.</li>
<li>
<a href="https://www.smartkarma.com/entities/vtech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18812:1" rel="noopener">Vtech Hldgs (303 HK)</a>, <a href="https://www.smartkarma.com/entities/samsonite-international-sa" target="_blank" data-smartkarma-citation="entities:12790:1" rel="noopener">Samsonite (1910 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>, and <a href="https://www.smartkarma.com/entities/tcl-multimedia-technology" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">Tcl Multimedia (1070 HK)</a> ranked lower on the list, but consumer cutbacks will have a bigger impact. </li>
<li>The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> and <a href="https://www.smartkarma.com/entities/prada-s-p-a" target="_blank" data-smartkarma-citation="entities:889:1" rel="noopener">Prada S.P.A. (1913 HK)</a>.</li>
</ul>



Sichuan Kelun-Biotech Bio (6990 HK), Techtronic Ind. (669 HK), Vesync (2148 HK), Chervon Hldgs (2285 HK), and WuXi AppTec (2359 HK) have a very high reliance on the US market.

Vtech Hldgs (303 HK), Samsonite (1910 HK), Haier Smart Home (6690 HK), and Tcl Multimedia (1070 HK) ranked lower on the list, but consumer cutbacks will have a bigger impact. 
The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like Orient Overseas International (316 HK) and Prada S.P.A. (1913 HK).


China & HK Strategy: Who Are the Victims of a US Recession?

China

Semiconductor Manufacturing International Corporation operates as a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

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SMIC (Semiconductor Manufacturing International Corp) (688981 CH)

SMIC Q2 2026. Record Quarter & “AI Companion Chip” Demand Is Enormous

SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on...

William Keating

Huawei’s “Tau Scaling Law” and “LogicFolding”. Desperation, A Genuine Breakthrough Or Both?

Huawei chips designed under this framework will deliver transistor density equivalent to a 1.4nm process by 2031, three years after TSMC’s publicly...

William Keating

BUY/SELL/HOLD: Hong Kong Market Update (February 10)

Hong Kong market continues in an upward trend after breaking resistance at 27100 last month. The next resistance level is 28000. Southbound flows...

David Mudd

Hong Kong Market Strategy - Trade and Portfolio Ideas Amidst the Volatility

$769 has lagged other rare earth plays but it is now up 100% in two days. We would look to sell half and keep the rest as a free ride. Hard...

Rikki Malik

China & HK Strategy: Who Are the Victims of a US Recession?

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SMIC Q2 2026. Record Quarter & “AI Companion Chip” Demand Is Enormous

SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on...

William Keating

Huawei’s “Tau Scaling Law” and “LogicFolding”. Desperation, A Genuine Breakthrough Or Both?

Huawei chips designed under this framework will deliver transistor density equivalent to a 1.4nm process by 2031, three years after TSMC’s publicly...

William Keating

BUY/SELL/HOLD: Hong Kong Market Update (February 10)

Hong Kong market continues in an upward trend after breaking resistance at 27100 last month. The next resistance level is 28000. Southbound flows...

David Mudd

Hong Kong Market Strategy - Trade and Portfolio Ideas Amidst the Volatility

$769 has lagged other rare earth plays but it is now up 100% in two days. We would look to sell half and keep the rest as a free ride. Hard...

Rikki Malik

China & HK Strategy: Who Are the Victims of a US Recession?

​Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...