Xuan Gu Bao·2025-07-23 03:00Core Viewpoint - The semiconductor sector is experiencing a strong performance, with several companies showing significant growth in their financial results and optimistic forecasts for the future [7][8]. Group 1: Financial Performance - TSMC reported a net profit of nearly 398.3 billion NTD for Q2 2025, marking a year-on-year increase of approximately 61%, achieving the highest quarterly net profit in history and the highest growth rate for the same period in three years [7]. - Over 30 semiconductor companies have disclosed their performance forecasts for the first half of 2025, with more than 80% of these companies expecting positive results. The median net profit for these companies is nearly 6.4 billion CNY, representing a year-on-year growth of over 80%, the highest growth rate for the same period since 2021 [7]. Group 2: Industry Trends - The National Integrated Circuit Industry Investment Fund (Big Fund) is focusing on supporting domestic equipment and components to accelerate local replacements, with local governments in cities like Beijing and Shanghai establishing special funds and offering tax incentives to support the semiconductor supply chain [8]. - The average validation cycle for domestic wafer fabrication equipment in China is expected to decrease from 24 months to 14 months by 2024, with the market share of domestic equipment manufacturers increasing from 7% in 2020 to 19% in 2024 [8]. - NVIDIA has resumed supplying its H20 computing chips to the Chinese market and launched a new series of fully compatible NVIDIA RTX PRO GPUs, aimed at digital twin AI applications in smart factories and logistics, addressing high-end computing bottlenecks [8]. - The global semiconductor market is projected to continue its optimistic growth trajectory in 2025, driven by AI demand and ongoing domestic replacement efforts amid rising risks of supply chain disruptions [8].