Sou Hu Cai Jing·2025-10-28 04:24Core Viewpoint - The semiconductor equipment and materials sector is experiencing significant growth, with the Shanghai Composite Index surpassing 4000 points, driven by strong performance in semiconductor-related stocks [1][3]. Group 1: Market Performance - As of 11:15 AM, the semiconductor equipment ETF (561980), which has approximately 70% exposure to semiconductor equipment and materials, increased by 0.38% [3]. - Notable stocks such as Aisen Co. surged over 13%, while Jingrui Electric Materials and Shenkong Co. rose over 6%, and Huafeng Measurement Control increased by over 5% [3]. - The ETF has seen a net inflow of 1.283 billion yuan over the last 20 trading days [3]. Group 2: Technological Advancements - A significant breakthrough in photoresist technology by a Peking University team is expected to accelerate the domestic replacement in the "selling shovels" segment of the chip industry [3]. - This technological advancement has led to a strong performance in material stocks like Jingrui Electric Materials over the past two days [3]. Group 3: Financial Performance - Jingrui Electric Materials reported a net profit attributable to shareholders that increased by over 192 times year-on-year for the first three quarters [3]. - Other companies such as China Shipbuilding Gas, Shanghai HJ, Shenkong Co., and Aisen Co. also reported positive year-on-year growth in revenue and net profit for the same period [3]. Group 4: Industry Insights - According to Founder Securities, the current domestic advanced node wafer production capacity is insufficient to meet the rapidly growing demand for computing power, highlighting the urgent need to enhance the overall capacity and industrial support from equipment and manufacturing perspectives [3]. - The domestic semiconductor industry is focused on increasing the localization rate of computing power chips across the entire supply chain, from upstream equipment and materials to midstream semiconductor manufacturing and downstream advanced packaging [3]. - The current domestic semiconductor equipment localization rate remains low, indicating significant room for replacement and growth [3].