Cai Jing Wang·2026-02-12 14:59Group 1 - The core viewpoint is that SMIC anticipates continued growth in the domestic industry chain due to the return of overseas supply chains and the replacement of older products by new domestic products by 2026 [1] - There is a strong demand for storage driven by artificial intelligence, which is squeezing the supply of storage chips for mid-to-low-end applications, leading to supply shortages and price increases for terminal manufacturers [1] - The company expects a decrease in mid-to-low-end orders while orders related to AI, storage, and mid-to-high-end applications are increasing [1] Group 2 - The supply of storage and BCD is insufficient, leading to price increases, while some competitors are reducing their mature production capacity, resulting in a decline in market supply [2] - Prices for new, competitive products are rising, while standard products that do not undergo iteration are seeing price declines [2] - The company will prioritize support for iterative products in R&D, engineering, and capacity to stabilize product prices and enhance control over average selling prices (ASP) [2]