Core Viewpoint - The storage chip sector is experiencing significant stock price movements, with several companies seeing sharp increases due to a new wave of price hikes in the market [1] Group 1: Market Movements - Goodix Technology's stock surged to the daily limit, indicating strong investor interest [1] - Other companies such as Zhaoyi Innovation and Xinyu Ren also saw their stocks rise over 5% [1] - Additional companies including Tongyou Technology, Yingfang Micro, Wanrun Technology, and Shannon Chip Innovation followed suit with price increases [1] Group 2: Market Trends - The storage chip market is currently undergoing a new round of price increases, with multiple leading firms announcing higher prices for certain products [1]

Group 1: Technology Developments - OpenAI launched new features for ChatGPT, including Connectors for integrating with various tools and Record Mode for automatic meeting notes, with over 3 million paid enterprise users [2] - Manus introduced a feature that converts text commands into complete video stories, initially available for paid users [4] - The EDA National Innovation Center and ChipHuaZhang launched a digital chip verification model based on LLM technology [11] Group 2: Corporate Announcements - SpaceX CEO Elon Musk projected the company's revenue to exceed $15.5 billion this year, with $1.1 billion expected from NASA [3] - Kingsoft Office announced the continued appointment of Lei Jun as honorary chairman to guide the company's development [5] - Xunlei completed the acquisition of Hupu for a total cash consideration of 500 million RMB [6] Group 3: Strategic Partnerships - Xiaopeng Motors announced a strategic partnership with Huawei, hinting at the adoption of Huawei's AR-HUD technology [7] Group 4: Market Trends and Investments - Global semiconductor market is projected to reach $700.9 billion by 2025, driven by demand in AI and cloud infrastructure [14] - GlobalFoundries announced a plan to invest $16 billion to enhance semiconductor manufacturing capabilities in New York and Vermont [13] Group 5: Mergers and Acquisitions - Shangluo Electronics plans to acquire a stake in Lijing Technology to gain control [17] - Huamao Technology intends to purchase the remaining 57.84% stake in Fuchuang Youyue, making it a wholly-owned subsidiary [18] - Kingsoft Office plans to acquire the remaining 32% stake in its subsidiary, Beijing Shuke Network Technology [19]

Core Insights - The establishment of the international headquarters in Singapore marks a significant step towards global expansion for the company, emphasizing its commitment to deepening customer collaboration and building a resilient and flexible supply chain [1][4] - The company has a competitive product portfolio, with its SPI NOR Flash products holding a 20.4% market share, ranking second globally, and being seventh in the 32-bit general MCU sector [3] - The company aims to leverage Singapore's strategic location and mature technology ecosystem to enhance its international operations and product innovation [3][4] Group 1 - The international headquarters in Singapore will oversee international operations, promote localized product innovation, and strengthen customer and supply chain collaboration [4] - The company is accelerating product innovation and ecosystem development to capture emerging market opportunities and respond effectively to diverse global customer needs [3] - Singapore's advanced infrastructure and strong global connectivity provide solid support for the company's international business expansion and global collaboration [3][4]

Core Viewpoint - The article summarizes the EDA (Electronic Design Automation) tool expenditures mentioned in the 2024 financial reports of 15 listed SoC/MCU/ASIC chip design companies, indicating that EDA expenses are relatively low, around 1% of total R&D costs, but are crucial for chip design [1]. Group 1: EDA Expenditures - Few companies disclose EDA tool expenses in their annual reports, and the disclosed amounts are generally low compared to overall R&D expenses [1]. - EDA tools are essential in chip design, akin to physical education in school exams, where despite low scoring weight, failing to meet standards can prevent entry into prestigious institutions [1]. - Companies like 瑞芯微 reported a significant increase of 294.58% in long-term payables due to increased EDA tool purchases [1][2]. Group 2: Company-Specific Insights - 中科蓝讯 reported EDA tool payables with a year-end balance of 5,309,734.52 yuan, down from 6,163,510 yuan at the beginning of the period [2][3]. - 普冉半导体 noted a 77% increase in intangible assets attributed to new EDA and IP purchases [5]. - 炬芯科技 indicated a 217% increase in other payables, primarily due to increased EDA tool procurement [7]. - 国民技术 reported EDA tool amortization of 370,000 yuan in long-term deferred expenses [14]. Group 3: Government Support and Risks - 晶晨股份 received government subsidies for EDA innovation applications [9]. - Several companies, including 恒玄科技 and 国科微, mentioned risks associated with EDA in their reports [13][16]. - 北京君正 received multiple EDA-related subsidies, highlighting government support for the industry [16].

Summary of Conference Call Notes Company and Industry Involved - The conference call discusses **兆易创新 (GigaDevice)**, focusing on the **NPU (Neural Processing Unit)** market and **customized storage solutions** within the **AI (Artificial Intelligence)** sector. Core Points and Arguments - **NPU Product Launches**: There is an anticipated wave of NPU product launches, project initiations, and tape-outs due to increasing computational power demands from AI applications across various terminals [1][2] - **Customized Storage Solutions**: The "NPU + customized storage" solution is being recognized as the optimal answer for edge AI by domestic smartphone manufacturers and leading international SoC (System on Chip) companies [1][2] - **Strong Collaborations**: GigaDevice has established deep collaborations with major industry players and is actively engaging with SoC partners, leading to multiple projects in the pipeline [1][2] - **Scarcity of Customized Storage**: Customized storage is highlighted as a scarce resource, with foreign storage giants focusing on HBM (High Bandwidth Memory) and PIM (Processing In Memory) products, showing a delayed and lower emphasis on customized storage strategies [2] - **Domestic Advantage**: GigaDevice benefits from advanced process and capacity support from domestic DRAM leaders, allowing for better alignment with customer needs in AI mobile and PC sectors [3] - **High Demand for Domestic Solutions**: In the context of HBM export restrictions, there is a significant domestic demand for AI storage solutions, indicating a strong market opportunity for GigaDevice [3] - **Core Positioning in the Supply Chain**: The company's edge AI storage products are positioned as critical components within the industry supply chain, warranting attention from investors and stakeholders [3] Other Important but Potentially Overlooked Content - The competitive landscape indicates that Taiwanese competitors are lagging in process technology, resulting in performance discrepancies that could benefit GigaDevice in securing market share [3]

Investment Rating - The industry investment rating is maintained as "Positive" [4] Core Insights - The recovery in storage demand is driven by the continuous increase in prices of NAND Flash and DRAM, with NAND Flash prices expected to rise by 3% to 8% in Q2 and potentially 10% in Q3 due to strong enterprise SSD demand from AI investments [7][10] - DRAM prices have seen significant increases, with a reported 27% rise in May for PC DRAM products, following a 22% increase in April, indicating a strong upward trend in pricing [8][11] - The AI wave is a key driver for sustainable growth in storage demand, with both enterprise and consumer-level storage needs expected to rise due to AI infrastructure investments and increased penetration of AI applications in consumer devices [7][10] Summary by Sections Storage Demand Recovery - Storage demand is rebounding, with NAND Flash prices increasing for five consecutive months since January, and DRAM prices showing a similar upward trend [8][10] - The average price for NAND Flash products used in storage cards and USB drives was reported at $2.92 in May, reflecting a 5% month-over-month increase [8] Price Trends - The average transaction price for PC DRAM (DDR4 8Gb 1Gx8) reached $2.1 in May, marking a 27% increase from the previous month [7][11] - Major DRAM manufacturers have implemented price hikes, with Samsung and SK Hynix announcing increases of approximately 20% for DDR4 and 5% for DDR5 [11] Investment Recommendations - The report suggests focusing on companies such as Zhaoyi Innovation, Beijing Junzheng, and Fudan Microelectronics, among others, as they are expected to benefit from the growth in storage demand driven by AI applications [2][12]

A股半导体企业密集宣布赴港上市或相关进展。 5月24日，韦尔股份（603501）公告，拟发行H股并在香港联交所主板上市。5月21日，兆易创新 （603986）同样宣布拟赴港上市。同日，紫光股份（000938）披露在股东大会上，通过了发行H股并于 香港联交所主板上市方案的议案…… 其次，不论采用Fabless还是IDM模式，在港搭建海外融资平台并推行业务出海计划，亦为A股半导体企 业赴港的重要因素。例如，作为Fabless芯片设计公司，韦尔股份认为，启动发行H股是根据公司总体发 展战略及运营需要，旨在加快公司的国际化战略及海外业务发展，增强公司的境外融资能力等。 杰华特采用虚拟IDM模式。据披露，公司本次H股募资计划用于：创新预研团队、丰富产品组合、完善 海外销售网络布局、战略性投资与收购、补充营运资金及一般企业用途等。 最后，"A+H"上市热度提升，还有着政策层面的持续支撑。今年4月，中国证监会发布五项资本市场对 港合作措施，其中第五项是支持内地行业龙头企业赴香港上市。 港交所行政总裁陈翊庭近期表示，目前已有逾40家A股公司宣布赴港上市或已递交上市申请，未来几个 月预计有更多A股公司来港上市。 据证券时报记者 ...

Investment Rating - The report assigns a rating of "Buy" for the company [4] Core Viewpoints - The company, Zhaoyi Innovation, is a leading player in the storage and MCU sectors, with a robust growth trajectory across its business segments [1][14] - The storage business accounts for 70.61% of revenue, while MCU and sensor segments contribute 23.19% and 6.09% respectively [27] - The company is positioned as the world's second-largest supplier of SPI NOR Flash and the leading domestic supplier of 32-bit Arm architecture MCUs [15][1] Summary by Sections Company Overview - Zhaoyi Innovation focuses on storage technology and has expanded into sensors and microcontrollers (MCUs), becoming a benchmark enterprise in China's semiconductor industry [14][1] - The company has a clear management structure with a technically proficient team, enhancing its strategic direction and product development [18][1] Storage Sector - The integration of AI technology is driving demand for storage chips, with a projected growth in the NOR Flash market to $2.699 billion in 2024, reflecting a 19.74% year-on-year increase [2] - The company maintains a leading position in NOR Flash products, catering to various applications across industrial, automotive, and consumer electronics sectors [2][31] MCU Sector - The global MCU market is expected to grow from $28.2 billion in 2023 to $38.8 billion by 2029, with Zhaoyi Innovation being the top domestic supplier of 32-bit MCUs [4][7] - The company has launched a RISC-V MCU, which is anticipated to meet the performance demands of edge AI applications [7][4] Financial Forecast and Valuation - Revenue projections for 2025, 2026, and 2027 are estimated at 93.60 billion, 115.50 billion, and 137.50 billion respectively, with corresponding net profits of 15.32 billion, 19.51 billion, and 24.45 billion [8][10] - The company is expected to achieve a significant recovery in profitability, with a projected net profit growth of 584.21% in 2024 [27][10]

Core Insights - The domestic ultrasonic fingerprint recognition module industry has rapidly penetrated from high-end markets to mass consumer sectors due to core technological breakthroughs and significant reductions in manufacturing costs, with a projected market size of approximately 2.697 billion yuan in 2024 [1][13] - The industry has seen a collaborative innovation across the supply chain, with domestic manufacturers upgrading piezoelectric materials from traditional lead zirconate titanate (PZT) to environmentally friendly aluminum nitride (AlN), and innovating with CMOS Sensor architecture, reducing module thickness to 0.15mm and production costs from $20 in 2021 to $12, a decrease of over 40% [1][13] - The application scenarios for ultrasonic fingerprint recognition modules have expanded explosively due to the dual drivers of cost reduction and performance enhancement [1][13] Industry Overview - Ultrasonic fingerprint recognition modules utilize ultrasonic waves to penetrate materials and identify fingerprints based on reflected signals, forming a 3D image for high precision and security [2] - The modules can be categorized into single-point and wide-area ultrasonic fingerprint recognition modules based on the recognition area size [2] Industry Development History - The industry has undergone four main stages: the embryonic phase before 2015, initial application from 2016 to 2020, rapid expansion from 2021 to 2023, and diversification of applications from 2024 onwards [4][5][6] - The initial phase saw limited commercial application due to sensor size and cost constraints, while the introduction of Qualcomm's SenseID in 2015 marked a significant technological advancement [4] - From 2021 to 2023, the industry experienced rapid growth, with domestic ultrasonic fingerprint recognition module shipments exceeding 120 million units in 2023, a year-on-year increase of 150% and a market penetration rate of 25% [5] Industry Supply Chain - The upstream of the ultrasonic fingerprint recognition module industry includes raw materials and production equipment, while the midstream involves the manufacturing of the modules, and the downstream encompasses applications in consumer electronics, automotive electronics, smart home, industrial manufacturing, and healthcare [8] Market Size - The global development of ultrasonic under-display fingerprint recognition technology has progressed slowly, with Qualcomm being an early player in the field [12] - The domestic ultrasonic fingerprint recognition technology has made significant strides, with companies like Goodix breaking Qualcomm's technological monopoly [12] Key Companies' Performance - The market remains in a blue ocean stage, with Qualcomm and Goodix holding over 90% market share, with Goodix leveraging its advantages in optical under-display fingerprint recognition and cost-effective domestic products [15] - Goodix's revenue from fingerprint recognition chips reached 1.679 billion yuan in 2024, with a market share exceeding 40% [16] - O-film Technology, a leader in optical and biometric recognition, has also made significant contributions to the industry, with a revenue of 4.882 billion yuan in Q1 2025 [18] Industry Development Trends - The technology iteration is accelerating, with a focus on precision improvement and scene penetration, aiming for 100% screen area recognition by 2025 [20] - Leading companies are integrating the entire supply chain from chips to algorithms to modules, enhancing competitive advantages [21] - The domestic market is driven by policies and market demand, with expectations for smartphone shipments to reach 320 million units by 2025, and ultrasonic fingerprint penetration rates to exceed 35% [23]

Core Viewpoint - The China Securities 5G Communication Theme Index has shown a decline in performance over the past three months and year-to-date, despite a slight increase in the past month [2]. Group 1: Index Performance - The China Securities 5G Communication Theme Index decreased by 1.75% to 849.03 points, with a trading volume of 30.387 billion yuan [1]. - Over the past month, the index has increased by 2.63%, but it has decreased by 19.80% over the past three months and 11.06% year-to-date [2]. Group 2: Index Composition - The index includes companies related to 5G construction and applications, reflecting the overall performance of listed companies in the 5G communication theme [2]. - The top ten weighted companies in the index are: Luxshare Precision (8.42%), ZTE Corporation (7.19%), Zhongji Xuchuang (5.82%), Xinyi Technology (5.72%), Zhaoyi Innovation (5.4%), Industrial Fulian (5.28%), Unisplendour (3.95%), GoerTek (3.67%), AVIC Optoelectronics (3.55%), and Sanan Optoelectronics (3.18%) [2]. Group 3: Market and Sector Breakdown - The index's holdings are primarily listed on the Shenzhen Stock Exchange (73.70%) and the Shanghai Stock Exchange (26.30%) [2]. - In terms of industry composition, Information Technology accounts for 54.49%, Communication Services for 39.59%, Industry for 3.86%, and Consumer Discretionary for 2.07% [2]. Group 4: Index Adjustment and Fund Tracking - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December [3]. - Public funds tracking the 5G communication theme include: Huaxia CSI 5G Communication Theme ETF Connect A, Huaxia CSI 5G Communication Theme ETF Connect C, Yinhua CSI 5G Communication Theme ETF Connect A, Yinhua CSI 5G Communication Theme ETF Connect C, Yinhua CSI 5G Communication Theme ETF, and Huaxia CSI 5G Communication Theme ETF [3].