Tianfeng Securities·2025-06-24 10:46Investment Rating - The industry rating is maintained as "Outperform" [6] Core Viewpoints - The semiconductor industry is expected to continue its optimistic growth trajectory, driven by AI and domestic substitution efforts [4][15] - The storage sector is highlighted as a key area of focus, with expectations of price increases for DDR4 contracts by 30-40% in Q3 [3][16] - The demand for storage capacity is rapidly increasing due to AI servers, PCs, and mobile devices, leading to a rise in high-value product penetration [3][14] Summary by Sections 1. Market Overview - In May, global chip delivery times remained stable, with a slight increase in spot market delivery times and rising storage prices [2][13] - Major chip suppliers showed stable delivery times, with some experiencing slight increases in both delivery times and prices [2][13] 2. Storage Sector - The storage sector is expected to see continued price increases, with significant demand for DDR4 and DDR5, leading to a saturated production capacity [3][18] - The anticipated price increases for DRAM and NAND Flash in Q3 and Q4 are driven by supply-side reforms and strong demand from AI applications [3][14][17] 3. Industry Growth Projections - The global semiconductor market is projected to grow, with a forecasted sales figure of approximately $626.87 billion in 2024, reflecting a 19% year-on-year increase [30][31] - The Chinese semiconductor market is expected to exceed $170 billion in sales in 2024, with a significant contribution from the Yangtze River Delta region [30][31] 4. Key Companies to Watch - Recommended companies in the semiconductor storage sector include Jiangbolong, Shannon Semiconductor, and Zhaoyi Innovation, among others [5] - In the IDM foundry and packaging sector, companies like Huahong Semiconductor and SMIC are highlighted for their growth potential [5] 5. Equipment and Materials - The equipment and materials sector is seeing stable growth, with leading manufacturers showing strong performance in Q1 2025 [4][15] - The ongoing domestic substitution efforts are reshaping the supply chain landscape, enhancing the competitiveness of local firms [4][15]