Recently, the semiconductor chip has achieved an outstanding achievement, and the demanding for AI chips is thriving.  “As the development of the internet and automotive electronics, it will stimulate the demanding of the emerging market.” Expert says. With the support of the government ,China will not only be the world's largest downstream demand and processing market, it will also become the fastest developing region of the global semiconductor chip industry in the next 10 years.

Huatai securities believes there are two reasons for the recent strengthening of semiconductor materials. First, the demand of the downstream has been improved, so the performance has been growing rapidly. Sales, profit and net profit of related enterprises have been significantly improved in the third quarter. The second is the industry trend presents upward, such as the recent shift of artificial intelligence plate from downstream to upstream. Therefore, upstream hardware’s requirements are improving.

Focus on chip localization trend, Huatai securities recommended two layout lines: one is the fixed investment in semiconductor. As the industry investment increasing, the related capital spending will reach peak in the next two or three years; the other is semiconductor seal test and manufacturer. Under the influence of semiconductor industrialization transferred to Asia and with fund support, purchasing foreign high-quality assets, seal test and manufacturing ability will be rapidly strengthened.