TSMC(US:TSM) Great Wall Securities·2025-07-14 08:33Core Insights - The report highlights a significant shift in macro policy focus from traditional investment-driven strategies to a deeper "expanding domestic demand" approach, addressing core issues of consumption stimulation and resident income expectations [2][18] - A new round of supply-side reform, characterized by "anti-involution," aims to create a more resilient and efficient industrial ecosystem, guiding resources towards high value-added and innovative sectors [2][18] Weekly Event Review - The A-share market continued its upward trend, with the Shanghai Composite Index stabilizing above 3500 points, showing a weekly increase of 1.09%, while the Shenzhen Component and ChiNext Index rose by 1.78% and 2.35% respectively [1][8] - The semiconductor sector benefited from the U.S. lifting restrictions on chip design software exports, while the consumer electronics chain faced pressure from U.S. tariffs on Brazil and five other countries [1][8] - The financial sector showed strong performance driven by market expectations of policy changes, with increased attention on the banking sector [1][8] Sector Recommendations - White Goods & Smart Home Appliances: The report recommends focusing on this sector due to the expansion of the "trade-in" policy and increased green energy subsidies, which are expected to activate terminal demand. The alleviation of raw material cost pressures and the ongoing industry upgrade towards smart and AI-enabled products are also highlighted [3][19] - Optical Modules: The strategic value of optical modules is emphasized, particularly in light of TSMC's strong Q2 results confirming robust AI computing demand. The sector is positioned for growth with the acceleration of 800G product deployment and advancements in 1.6T technology [5][20]