Shenzhen SEICHI Technologies (SH:688627) Soochow Securities·2025-06-22 03:02Investment Rating - The report maintains an "Overweight" rating for the HBM industry [1] Core Viewpoints - The demand for computing power is surging, and external regulations on HBM in bandwidth and other areas will stimulate breakthroughs and supply in domestic HBM production. Recent news about domestic storage clients validating HBM3 has led to significant stock price increases for key players like Jingzhida and Xinyuanwei [5] - Domestic storage clients have achieved manufacturing capabilities for DDR5 chips, meeting core indicators for transmission speed, although there is still room for improvement in heat dissipation and energy consumption. The underlying storage particles for HBM3 are ready for mass production, with some equipment companies already receiving orders related to HBM [5] - The testing machines, TCB, CMP, and other key processes have the greatest flexibility. Key processes such as TCB, CMP, bonding, electroplating, and testing machines are either domestically produced or easily obtainable. The report anticipates that domestic HBM breakthroughs will occur in the second half of this year, with an expected production increase of 5,000 8-layer wafers, leading to significant order increments across various equipment segments [5] - The expansion of domestic HBM production will also benefit upstream equipment, generating additional demand for DRAM production. The anticipated HBM production increase corresponds to a need for 40,000 DDR5 chips, resulting in approximately 35 billion in capital expenditure increases for equipment [5] - The report recommends investing in Jingzhida, which is expected to benefit significantly from this expansion due to its maximum order flexibility [5]