Western Securities·2025-12-08 08:24Group 1 - The report highlights that the global semiconductor industry is experiencing a significant cycle driven by AI, with China's semiconductor sector benefiting from this trend and policy guidance, leading to a potential for a fully self-sufficient integrated circuit industry [6][18][27] - The AI market is projected to grow at a compound annual growth rate (CAGR) of 56.3% over the next five years, with the global semiconductor market expected to exceed $1 trillion by 2030, particularly in the server, data center, and storage sectors [6][14][18] - Domestic demand for advanced logic foundry services is expected to reach 71,200 wafers per month by 2028, indicating a significant supply-demand gap in China's advanced logic foundry capacity [7][32][45] Group 2 - The report anticipates a new pricing cycle in the global storage market driven by AI, with domestic storage manufacturers expected to play a leading role in capacity expansion [49][50][61] - The demand for DRAM and NAND is projected to grow significantly, with DRAM bit demand expected to increase by 17-19% and NAND bit demand by 18-20% in the coming years [58][59] - Major storage manufacturers are focusing on technology upgrades and capacity control, which may lead to a supply-demand gap, benefiting domestic manufacturers like Changxin Storage and Yangtze Memory Technologies [61][68] Group 3 - The report emphasizes the importance of domestic semiconductor equipment investment, with a projected market size of $389 billion in China by 2025, leading the global market [81][86] - The expansion of advanced nodes in domestic semiconductor manufacturing is expected to enter a high prosperity phase, with significant capital expenditure planned for the coming years [81][86] - The report suggests that companies with high exposure to storage will outperform, drawing parallels to previous cycles where equipment companies saw substantial stock price increases [72][86]