Great Wall Securities·2025-09-24 07:42Investment Rating - The report rates the semiconductor industry as "Outperform" [1] Core Insights - The dual engines of storage and computing power are driving the AI era, with Q2 revenue for the top 60 global semiconductor companies increasing by 9% quarter-on-quarter, and an expected 8% increase for Q3 [12][15] - The semiconductor sector is experiencing a strong recovery, with various segments showing significant growth in revenue and profit margins [19][24] Summary by Sections Global Semiconductor Leaders - The top 60 global semiconductor companies saw a Q2 revenue increase of 9% quarter-on-quarter, with an expected 8% increase for Q3 [15][19] - The semiconductor sales for Q2 reached approximately $179.7 billion, with a year-on-year growth of 20% [15] - The expected Q3 revenue for these companies is projected to be around $225.5 billion, reflecting a year-on-year increase of 23% [15] Semiconductor Equipment - The semiconductor equipment sector's revenue increased by 4% in Q2, primarily due to sales growth in Taiwan [2][21] - Q3 revenue is expected to decline by 1% due to a decrease in guidance from equipment manufacturers [2][21] Semiconductor Silicon Wafers - The silicon wafer sector's revenue increased by 7% in Q2, with strong demand for AI products [3][24] - Q3 revenue is expected to remain flat, as demand for AI continues while inventory digestion in other areas takes time [3][24] Packaging and Testing - The packaging and testing sector's revenue increased by 9% in Q2, with an expected 14% increase in Q3 due to strong demand for advanced packaging [4][21] Upstream Manufacturing - The wafer manufacturing sector is benefiting from strong demand for advanced processes, with Q2 revenue increasing by 16% and an expected 6% increase for Q3 [3][21] Semiconductor Design - The storage segment is expected to see a revenue increase of 11% in Q3, driven by strong AI demand and geopolitical factors [4][21] - The MPU segment is projected to grow by 15% in Q3, supported by robust data center demand [4][21] - The RF segment is expected to rebound with a 14% increase in Q3, driven by the launch of the iPhone 17 series [4][21] Investment Recommendations - The report emphasizes the importance of focusing on companies within the AI supply chain and those that are undervalued or in a turnaround situation [11][24]