On December 17, information from the investor relations activity records released by HHGK (Semiconductor Wafer, Inc.) revealed that the silicon components produced from its large - diameter silicon materials are mainly utilized in the etching process of memory chip fabrication facilities. When these facilities operate at higher rates, the usage of these components rises accordingly. The company holds an optimistic view, expecting that the ongoing upswing in the semiconductor industry will spur greater market demand.

As an upstream materials and components supplier, HHGK is affected by the operations of downstream memory chip manufacturers. Typically, if the operating rates of these downstream memory chip manufacturing plants climb or their capital expenditures increase, new demand will filter through to HHGK after about 1 - 2 quarters. This is because the production adjustments and investment decisions made by downstream players take time to translate into orders for upstream suppliers.

Earlier this month, HHGK initiated negotiations for new orders with clients based in Japan and South Korea. These two countries are home to some of the world's leading memory chip manufacturers, and securing orders from them could significantly boost HHGK's business prospects.