0712 GMT - China's resurging consumer-electronics demand and solid automotive growth could boost SMIC's chip business over the next five years, DBS analyst Jim Au says in a research note. SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 13, 2025 02:12 ET (07:12 GMT)
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