First Shanghai Securities·2025-05-26 04:48Investment Rating - The report maintains a positive outlook on domestic computing power opportunities in the context of U.S. restrictions on advanced chip exports to China and the increasing urgency for domestic computing power alternatives [3]. Core Insights - NVIDIA is set to launch a new custom chip B40 for the Chinese market, with a price range of $6,500 to $8,000, significantly lower than the previous H20 model priced at $10,000 to $12,000. The new chip's performance is expected to be inferior to both its predecessor and mainstream domestic chips [2][5]. - The urgency for domestic computing power replacement continues to rise due to geopolitical tensions and restrictions on advanced technology [3]. - Xiaomi has launched its self-developed 3nm flagship chip "玄戒 O1," marking it as the fourth company globally to release a 3nm mobile processor, with significant R&D investment exceeding 13.5 billion yuan [5]. Summary by Sections NVIDIA Custom Chip Launch - NVIDIA's new custom chip B40 is expected to be released by the end of June, with a projected shipment of 1 million units in 2025. The chip will utilize GDDR7 memory instead of HBM, resulting in a bandwidth reduction from 4TB/s to 1.7TB/s [2][5]. Domestic Computing Power - The report emphasizes the growing importance of domestic computing power solutions in light of U.S. export restrictions and the competitive landscape [3]. Industry Developments - AMD plans to sell its ZT Systems server manufacturing business for $3 billion, focusing on chip design and software support [7]. - TSMC has rejected offers to build factories in India, opting instead to collaborate with local firms [7]. - Semiconductor capital expenditure is projected to grow by 27% in Q1 2025, driven by investments in AI-related technologies [7]. - GlobalWafers America has officially opened a new advanced semiconductor wafer manufacturing facility in Texas, with plans for further investment [11].