Core Viewpoint - The article discusses the current state and future outlook of the global semiconductor foundry industry, highlighting the dominance of TSMC and the competitive landscape among major players like Samsung and SMIC [2][4][5]. Group 1: Market Overview - According to TrendForce, the global foundry market is projected to reach $169.5 billion in 2025, representing a year-on-year growth of 26.3% [2]. - TSMC holds a commanding market share of 70%, with revenue expected to exceed $122.54 billion, increasing from 64.4% in 2024 to 69.9% in 2025 [4]. - The foundry industry faces potential challenges in the second half of the year due to rising memory chip prices, which may lead to decreased demand [2]. Group 2: Company Performance - TSMC remains the leader in advanced process technologies, particularly in 3nm and 2nm nodes, with significant demand for mobile and AI chips [4]. - Samsung ranks second with a revenue of $12.634 billion, accounting for 7.2% of the market, but its position has declined compared to 2024 [4]. - SMIC, in third place, reported a revenue of $9.33 billion, marking a 16.2% increase year-on-year, driven by rising domestic demand for semiconductor alternatives [5]. Group 3: Competitive Landscape - The article notes that the foundry market is highly concentrated, with TSMC, Samsung, and SMIC being the primary players, while other companies are mainly from mainland China and Taiwan [5]. - There is a potential for SMIC to surpass Samsung in the coming years, contingent on its ability to scale up advanced production capacity [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION 中 芯 國 際 集 成 電 路 製 造 有 限 公 司 * 承董事會命 中芯國際集成電路製造有限公司 公司秘書 / 董事會秘書 郭光莉 中國上海，2026 年 3 月 16 日 於本公告日期，本公司董事分別為： 執行董事 劉訓峰 （於開曼群島註冊成立之有限公司） （股份代號：00981） 董事會批准發佈2025年度業績通知 根據香港聯合交易所有限公司證券上市規則第13.43條，中芯國際集成電路製造有限公司（「本 公司」）特此通知，本公司董事會謹訂於2026年3月26日（星期四）批准刊發本公司截至2025 年12月31日止經審計年度業績公告。 范仁達 劉明 吳漢明 陳信元 * 僅供識別 非執行董事 魯國慶 陳山枝 楊魯閩 黃登山 獨立非執行董事 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION 中 芯 國 際 集 成 電 路 製 造 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：00981） 董事會批准發佈2025年度業績通知 非執行董事 魯國慶 陳山枝 楊魯閩 黃登山 獨立非執行董事 范仁達 劉明 吳漢明 陳信元 * 僅供識別 根據香港聯合交易所有限公司證券上市規則第13.43條，中芯國際集成電路製造有限公司（「本 公司」）特此通知，本公司董事會謹訂於2026年3月26日（星期四）批准刊發本公司截至2025 年12月31日止經審計年度業績公告。 承董事會命 中芯國際集成電路製造有限公司 公司秘書 / 董事會秘書 郭光莉 中國上海，2026 年 3 月 16 日 於本公告日期，本公司董事分別為： 執行董事 劉訓峰 ...

Summary of Key Findings from China Semiconductors Tour 1H26 Industry Overview - The semiconductor industry in China is experiencing strong demand, particularly in sectors other than mobile, with companies gaining market share through technological advancements and localization efforts [1][2]. Core Insights Semiconductor Equipment (Semicap) - Front-end capacity expansion remains robust, with DRAM orders expected for a Shanghai fab soon and additional fabs planned for Beijing and Hefei by 2027-28 [2]. - Advanced logic orders are anticipated to bring significant upside, although visibility for mature logic remains less clear [2]. - The localization rate for semiconductor equipment is projected to rise from approximately 30% to 45% this year, with domestic suppliers gaining traction [12][26]. AI Chips - Demand for AI chips continues to be strong, but capacity constraints are a significant bottleneck [3]. - CSPs are shifting towards local vendors due to restrictions on Nvidia chips, increasing demand for local chips in inferencing [3]. Power Discrete - Foundry and IDM capacity in China is tightening, leading to expected price increases for power discrete components [4]. - Demand in the automotive sector is projected to grow over 20%, while consumer demand is expected to be weaker [4]. Analog Semiconductors - New product releases are driving market share gains, with pricing stabilizing and potential recovery expected this year [5]. - The automotive segment is anticipated to grow faster than others, with increasing content per vehicle [5]. Financial Guidance and Market Performance - Companies such as NAURA, AMEC, Piotech, SMIC, Hua Hong, Cambricon, Hygon, and Horizon Robotics are rated as outperformers, while Silergy is marked as market-perform and Black Sesame as underperform [8]. - AMEC aims for RMB 100 billion in revenue over the next five years, targeting a 30% CAGR [23]. - The overall gross margin for semicap is expected to decline to around 39% in 2026, driven by competition and margin compression in mature-node and memory segments [18]. Investment Implications - The semiconductor equipment market in China is projected to reach RMB 500-600 billion by 2030, with a conservative estimate of capturing 20% market share [23]. - The localization of semiconductor equipment is seen as irreversible, with significant opportunities for domestic suppliers [12][13]. Additional Observations - The competitive landscape is characterized by regional government support and competition, which is driving growth in the semiconductor sector [26]. - Companies are focusing on R&D and product development to enhance competitiveness, particularly in advanced technology areas such as GAA and 3D NAND processes [30][41]. Conclusion - The semiconductor industry in China is poised for growth, driven by strong demand across various segments, localization efforts, and technological advancements. Companies are strategically positioning themselves to capitalize on these trends, with a focus on expanding market share and improving financial performance.

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights a significant increase in demand for computing power driven by advancements in AI and cloud services, with Oracle and Tencent leading the charge in revenue growth and pricing strategies [6][11][17] - The year 2026 is projected to be pivotal for the computing power industry, transitioning from "cloud training" to a dual-driven model of "training + inference," leading to a rapid release of computing power demand [6][19] - The supply side is expected to shift from a state of scarcity to structural balance, with domestic computing power resources effectively meeting the surging demand [6][43] Summary by Sections Oracle's Performance and Tencent's Pricing Strategy - Oracle's FY26Q3 results exceeded expectations, with total revenue reaching $171.90 billion, a year-on-year increase of 21.66%, and cloud business revenue growing by 44% to $89.14 billion [11][12] - Tencent Cloud announced significant price increases for its AI models, with some models seeing price hikes of over 400%, indicating a trend of rising costs in cloud computing services [17][18] Rapid Release of Computing Power Demand - Major internet companies are advancing their AI models, with a focus on high-quality and multi-modal capabilities, which is expected to drive up the demand for computing power [19][20] - The inference side of computing power demand is anticipated to grow steeply, fueled by the rapid adoption of AI applications across various sectors [33][34] Supply Side Improvements and Domestic Production - The approval of NVIDIA's H200 AI chips for the Chinese market is expected to alleviate computing power shortages for major internet companies [43][44] - Domestic computing power chips have reached a point where they are not only usable but also competitive, with significant improvements in performance and ecosystem development [44][45] Full Chain Inflation in Domestic Computing Power - The report predicts a "full chain inflation" cycle in the computing power industry in 2026, with growth expected across various segments including AIDC, cloud services, and supporting infrastructure [50][52] - Major tech companies are projected to increase their capital expenditures significantly, with estimates reaching $650 billion in 2026, further driving the demand for computing power [52][53]

Core Insights - The global wafer foundry industry is projected to exceed 1 trillion yuan in revenue for the first time in 2025, reaching 11,485 billion yuan, representing a year-on-year growth of 25.46% compared to 2024 [2][5] - The growth is driven by the ongoing digitalization and intelligence wave, highlighting the increasing demand for chips and the value of the foundry model in the semiconductor industry [2] Group 1: Industry Overview - The top ten wafer foundry companies are expected to generate a total revenue of 11,056 billion yuan in 2025, with a year-on-year growth rate of 26.12%, indicating a concentration of market share among leading firms [5] - The overall market share of the top ten foundry companies is projected to increase to 96.27%, reflecting a "Matthew Effect" where larger firms continue to dominate the market [5] - The industry is characterized by structural growth led by top companies, with smaller firms facing increasing challenges in maintaining market share [5][6] Group 2: Regional Dynamics - Taiwanese companies dominate the foundry landscape, holding four positions in the top ten, with a combined market share of 80.68% in 2025, an increase of 2.15 percentage points from 2024 [6] - TSMC is the leading player, with revenue expected to surpass 8,000 billion yuan in 2025, growing by 2,000 billion yuan from 2024, and capturing nearly 75% of the market share [6] - Chinese mainland firms, including SMIC and HuaHong Group, have made it to the top ten but face challenges in increasing their market share, which is projected to be 10.44% in 2025, down 0.44 percentage points from 2024 [6][7] Group 3: Company Strategies and Trends - SMIC is focusing on local substitution and has identified two main trends: deepening localization and a potential reversal in the storage cycle by Q3 2026, which could alleviate supply shortages in consumer storage [10] - HuaHong Group emphasizes the dual drivers of domestic production and AI, with a focus on power management and MCU chips as core growth areas [13][14] - Chip integration companies like Nexchip are leveraging their strengths in mature processes to capture market opportunities, particularly in AI and automotive sectors [18][19] Group 4: Competitive Landscape - TSMC's capital expenditure is set to reach 40.9 billion USD in 2025, with a focus on advanced processes and AI-driven demand, indicating a robust growth trajectory [26][30] - UMC is navigating a challenging environment with declining demand in consumer electronics, while focusing on high-value mature processes to maintain competitiveness [31][33] - World Advanced is experiencing a renaissance in mature processes, driven by AI demand, and is expanding its capacity to meet the growing needs of the market [35][37] Group 5: Future Outlook - The wafer foundry industry is expected to continue evolving with a focus on advanced packaging and silicon photonics as key growth areas, driven by AI and high-performance computing demands [34][41] - Companies are increasingly adopting strategies that emphasize differentiation through technology and specialization in niche markets, rather than competing solely on scale [20][21]

Summary of Key Points from the Investor Presentation on Global and China AI GPU Industry Industry Overview - The presentation focuses on the **AI GPU industry**, particularly the competitive landscape between **China** and the **US** in AI semiconductor production and demand [1][4][98]. Core Insights - **Long-term Demand Drivers**: - The AI semiconductor market is expected to grow significantly, with **cloud AI** being a major growth driver, potentially reaching a total addressable market (TAM) of **US$235 billion by 2025** [12][18]. - **China's AI chip TAM** is projected to grow to **US$67 billion by 2030**, with self-sufficiency expected to reach **76%** [109][111]. - **Market Dynamics**: - The **cloud capital expenditure (capex)** is robust, with estimates of nearly **US$632 billion** in 2026 from the top 10 global cloud service providers (CSPs) [12]. - **Nvidia's CEO** estimates global cloud capex could reach **US$1 trillion by 2028**, including sovereign AI [14]. - **Supply Chain Challenges**: - The semiconductor supply chain is prioritizing AI semiconductors over non-AI semiconductors, leading to potential shortages in other areas [10]. - **Tech inflation** is expected to impact demand for tech products, with rising costs for wafers, OSAT, and memory creating margin pressures for chip designers in 2026 [10]. - **China's AI GPU Development**: - The presentation raises critical questions about whether China can supply competitive AI GPUs at scale and the potential size of the domestic AI GPU market [100]. - The **local AI chip market** is expected to surpass US chips in value by **2027**, with **Huawei** projected to maintain over **50%** market share in local AI chips from 2026 to 2030 [148] [150]. Important Data Points - **NVIDIA's Production Estimates**: - TSMC is expected to produce **7-8 million GPU chips in 2025**, with NVIDIA's server rack chip consumption projected to reach **60,000-70,000** units [64][66]. - **AI Semiconductor Consumption**: - AI computing wafer consumption could reach **US$26 billion in 2026**, with NVIDIA accounting for the majority of this demand [56]. - **TSMC's Capacity Expansion**: - TSMC plans to expand its CoWoS capacity to **125k wafers per month by 2026** due to strong AI demand [47][52]. Other Notable Insights - **Geopolitical Risks**: - The presentation discusses potential geopolitical risks affecting the supply chain, including restrictions on foreign foundries and export controls on critical technologies [154]. - **Inference Economics**: - Domestic chips in China are reported to have lower total cost of ownership (TCO) and comparable costs per token for AI inference compared to NVIDIA's processors [158]. - **Strategic Responses**: - Recommendations for overcoming wafer process constraints include packaging more dies into a single chip and expanding manufacturing capacity [130]. This summary encapsulates the critical insights and data points from the investor presentation, highlighting the competitive landscape and future outlook for the AI GPU industry, particularly in the context of China and its efforts to close the technological gap with the US.

Core Viewpoint - The latest research from TrendForce indicates that TSMC continues to benefit from advanced processes driven by demand for AI server GPUs, Google's TPUs, and ASICs, achieving a global market share of 70.1% in the foundry industry, solidifying its position as the leader in the sector [1] Group 1: Industry Overview - The total output value of the top ten foundry companies is projected to reach approximately $169.5 billion in 2025, representing a year-on-year increase of 26.3%, setting a new record [1] - Despite some pre-stockpiling of consumer products in the first half of 2026 stabilizing capacity utilization, there are concerns about order volumes and capacity utilization in the second half due to rising memory prices and shrinking demand [1] Group 2: Company Performance - TSMC's wafer shipments are expected to slightly decrease in Q4 2025, but the launch of flagship products like the iPhone 17 will boost 3nm wafer shipments, leading to a 2% revenue growth to $33.7 billion, maintaining a market share of 70.4% [1] - Samsung Electronics, excluding System LSI performance, is projected to achieve a revenue increase of 6.7% in Q4 2025, reaching nearly $3.4 billion, turning from loss to profit, with a market share increase from 6.8% to 7.1% [2] - SMIC is expected to benefit from local market advantages, with a revenue increase of 4.5% in Q4 2025, reaching nearly $2.49 billion, driven by increased wafer shipments and a slight rise in ASP [2] - UMC's revenue in Q4 2025 is projected to grow by 0.9% to approximately $2 billion, maintaining its fourth position in market share [2] - GlobalFoundries is expected to see an 8.4% revenue increase in Q4 2025, reaching $1.8 billion, driven by demand for data center components [2] - Hua Hong Semiconductor Group's revenue is projected to increase by 3.9% in Q4 2025, reaching nearly $1.22 billion, supported by demand for MCUs and PMICs [3] - Tower's revenue is expected to grow by 11.1% in Q4 2025, reaching $440 million, moving up to seventh place in market share [3] - Vanguard's revenue is projected to decrease by 1.6% in Q4 2025 to $406 million due to reduced DDIC orders [3] - Nexchip's revenue is expected to decline by 5.3% in Q4 2025 to $388 million, as some products are postponed to Q1 2026 [3] - PSMC's revenue is projected to grow by 2% in Q4 2025 to approximately $37 million, ranking tenth [3]

Core Viewpoint - The integrated circuit industry continues to maintain a high level of prosperity driven by demand for artificial intelligence, recovery in consumer electronics, and accelerated domestic substitution [1][3]. Group 1: Industry Performance - The 128 integrated circuit companies listed on the Sci-Tech Innovation Board are expected to achieve a revenue of 365.11 billion yuan, a year-on-year increase of 25%, and a net profit of 27.93 billion yuan, a year-on-year increase of 83% [1]. - Over 80% of these companies anticipate revenue growth, with 60% expecting an increase in net profit, and 12 companies turning losses into profits [1]. - The chip design segment leads the industry with a net profit growth rate of 268% [1]. Group 2: AI and Market Trends - In 2025, the commercial application of artificial intelligence is expected to accelerate, leading to a surge in demand for computing power, storage, and optical chips [3]. - The 76 chip design companies are projected to achieve a combined revenue of 163.10 billion yuan, a year-on-year increase of 32%, and a net profit of 13.7 billion yuan, a year-on-year increase of 268% [3]. - Companies like Cambricon, Moore Threads, and Muxi have seen significant revenue growth, with Cambricon achieving its first annual profit of 2.06 billion yuan [3]. Group 3: Storage and Optical Chips - The storage chip sector is entering a "super cycle" due to explosive demand for AI computing power, with companies like Lianqi Technology and Baiwei Storage expecting substantial profit increases [4]. - The optical chip market, represented by companies like Shijia Photon and Yuanjie Technology, has seen a combined revenue of 4.62 billion yuan, a year-on-year increase of 62%, and a net profit of 713 million yuan, a year-on-year increase of 419% [4]. Group 4: Manufacturing Capacity and Policy Support - The manufacturing sector is operating at full capacity, with companies like SMIC and Huahong achieving high utilization rates and significant revenue growth [7]. - The government has prioritized the integrated circuit industry as a key emerging pillar, promoting technological self-reliance and efficiency improvements [6]. Group 5: Mergers and Acquisitions - Mergers and acquisitions are becoming a vital strategy for the integrated circuit industry to enhance resource integration and competitiveness [9]. - Since the release of supportive policies, there have been 51 disclosed equity acquisitions in the integrated circuit sector, with a total transaction amount exceeding 77 billion yuan [9].

Core Viewpoint - The advanced process technology in the semiconductor foundry industry continues to benefit from high demand for AI server GPUs and Google TPUs, leading to strong shipment performance in Q4 2025. The overall revenue of the top ten global foundries increased by 2.6% quarter-over-quarter, reaching approximately $4.63 billion [2]. Summary by Sections Industry Overview - In Q4 2025, the total revenue of the top ten foundries reached approximately $46.25 billion, marking a 2.6% increase from the previous quarter and a 26.3% year-over-year growth, setting a new record for the year [3][5]. Company Performance - **TSMC**: In Q4 2025, TSMC's revenue grew by 2% to $33.72 billion, maintaining a market share of 70.4%. The increase was driven by the launch of flagship mobile products like the iPhone 17, which boosted 3nm wafer shipments and average selling prices (ASP) [6]. - **Samsung**: Samsung Foundry's revenue in Q4 2025 reached nearly $3.40 billion, a 6.7% increase quarter-over-quarter, transitioning from a loss to profitability. Its market share rose from 6.8% to 7.1% due to the contribution from 2nm new products [7]. - **SMIC**: SMIC's revenue in Q4 2025 was approximately $2.49 billion, up 4.5% from the previous quarter, benefiting from increased wafer shipments and a slight rise in ASP [8]. - **UMC**: UMC reported a revenue of about $1.99 billion in Q4 2025, a 0.9% increase, with stable orders from major clients maintaining capacity utilization [9]. - **GlobalFoundries**: GlobalFoundries experienced an 8.4% revenue growth in Q4 2025, reaching $1.83 billion, driven by increased demand for data center components [11]. - **HuaHong Group**: HuaHong Group's revenue in Q4 2025 was approximately $1.22 billion, a slight increase of 0.1%, supported by MCU and PMIC demand [12]. - **Tower**: Tower's revenue grew by 11.1% to $440 million in Q4 2025, aided by strong growth in silicon photonics and silicon germanium applications [13]. - **Vanguard**: Vanguard's revenue decreased by 1.6% to $406 million in Q4 2025, impacted by reduced DDIC orders and client validation issues [14]. - **Nexchip**: Nexchip's revenue fell by 5.3% to $388 million in Q4 2025, as some products were postponed to Q1 2026 [15]. - **PSMC**: PSMC's revenue in Q4 2025 was approximately $370 million, a 2% increase, driven by strong demand for memory foundry services [16].