Summary of Conference Call for Aisen Co., Ltd. Industry Overview - The focus for investment this year (2025) is on self-sufficiency, particularly in the equipment and materials sectors, with domestic companies actively replacing foreign products [2][3] - The advanced packaging sector is trending towards higher integration and heterogeneous integration, with 2.5D and 3D packaging becoming key directions for GPU and AI chip development [2][4] Company Insights - Aisen Co., Ltd. has launched mass production of its positive DNQ series photoresist products, with a high market share expectation, while the negative acrylic series holds about a low double-digit percentage [2][6] - The company is conducting chemical amplification RDL photoresist tests, with client validation expected in the second half of the year, aiming for a comprehensive product layout [2][6] - Aisen's positive DNQ and negative acrylic series have gained market share in the domestic advanced packaging sector, which primarily uses JSR's post-film revival photoresist [2][7] Market Dynamics - The HBM memory market is currently dominated by international giants, but domestic companies are gradually entering this space [2][7] - Due to international political factors, the supply of HPV3 and subsequent products is limited, necessitating independent development of related technologies in China [2][8] - The TSV (Through-Silicon Via) technology is crucial in HBM structures, and Aisen is developing TSV photoresist and high-speed copper plating products [2][9] Product Development and Strategy - Aisen is focusing on developing new PSPI materials to meet the diverse needs of advanced packaging, with plans to become a leading supplier in this area within two to three years [2][4][14] - The company has established a strategic partnership with Shenghe Jingwei, focusing on electroplating and photoresist products, with significant sales growth expected [2][26] - Aisen's business performance in the advanced packaging sector is projected to grow rapidly, with a target of achieving significant sales in the wafer and advanced packaging fields [2][14][31] Challenges and Opportunities - The ongoing trade tariff war has increased material procurement costs for several packaging and testing companies, prompting a shift towards domestic materials [2][33] - The domestic PSPI market is still in its infancy, with a market size of approximately 1.5 billion RMB, and Aisen is working to increase its market share through product development and client validation [2][17][22] - The company is addressing supply chain challenges by developing multiple alternative solutions to mitigate reliance on single products [2][19] Future Outlook - Aisen anticipates structural growth driven by increasing demand from domestic clients, particularly in the HBM sector, and plans to expand its product offerings to meet market needs [2][28] - The company aims to enhance its domestic replacement rate and market share through improved risk control and technology advancements [2][25]

华尔街见闻从供应链权威渠道获悉，由于台积电（TSMC）封测产能扩张，日本旭化成全力供应低温PI （PSPI）材料给台积电，导致这种材料的全球供应链条紧绷，旭化成因而限供中国封测公司，致使中国 封测公司转向求购国内低温PI材料供应商同类产品。由此，国产供应商"意外"承接泼天富贵。先进封装 是低温PSPI材料的主要应用场景之一。（作者 周源） ...

Core Viewpoint - Heterogeneous integration presents significant opportunities for performance enhancement and power reduction in semiconductor packaging, but it also introduces complex challenges such as chip misalignment, warpage, and CTE mismatch [1][2]. Group 1: Heterogeneous Integration - Heterogeneous integration allows for the combination of various components with different manufacturing processes into a single package, potentially offering cost-effectiveness and higher yield compared to integrating similar components on a single silicon die [1]. - The integration of devices into a single package can improve performance and reduce overall circuit footprint, although it poses substantial challenges in aligning different components on a single substrate [1]. Group 2: Interconnect and Mediator Layers - Most heterogeneous components utilize some form of mediator layer to connect circuit components, with the choice of materials influenced by the required interconnect and power density [3]. - Managing the thermal expansion coefficient (CTE) differences between silicon devices and copper-based system-level wiring is a fundamental challenge in the design of these mediator layers [3][4]. Group 3: Challenges in Packaging - The process of aligning chips and managing warpage is particularly challenging in panel-level packaging, where the thermal expansion characteristics of materials can lead to misalignment during the assembly process [6][7]. - Once the packaging materials harden, any chip misalignment becomes "frozen," complicating detection and correction of alignment issues [7]. Group 4: Power Devices and Packaging - Packaging is a critical differentiator for power devices, which require low-loss, low-noise, and excellent thermal characteristics [8]. - The degradation of epoxy-based molding compounds due to thermal and electrical fields can lead to brittleness and moisture ingress, necessitating careful consideration of packaging materials [9]. Group 5: Collaborative Design and Optimization - The integration of heterogeneous packaging blurs the lines between on-chip and off-chip environments, emphasizing the need for co-optimization of packaging design and component devices [9]. - Standardized interfaces like UCIe are a good starting point, but thorough simulation of proposed designs remains essential for effective integration [9].

Report's Industry Investment Rating - No information provided regarding the industry investment rating. Report's Core View - The mask industry will develop towards high precision, multi - layer, localization, and application diversification in the next few years. It is less affected by the downstream industry cycle, with the average price of mask showing a stable - to - rising trend. The company, as a local mask manufacturer, has significant advantages in delivery, service, and response speed, and downstream customers have a strong willingness for domestic substitution. The diversification of downstream applications and technological evolution will drive the industry into a high - prosperity cycle [26][28]. Summary According to Related Catalogs 01. Research Basic Situation - The research object is Luwei Optoelectronics, belonging to the optoelectronics and photonics industry. The reception time is May 22, 2025, and the listed company's reception staff includes the chairman, president, directors, financial supervisor, and independent director [17]. 02. Detailed Research Institutions - The reception objects include investors and others [20]. 03. Research Institution Proportion - No information provided. 04. Main Content Data - **Semiconductor Business Progress**: Luxin Semiconductor plans to send samples of 90 - 100nm semiconductor masks in the first half of 2025 and trial - produce 40nm semiconductor masks in the second half. It will contribute revenue in 2025 and may promote the 28nm project from 2026 - 2027 [24]. - **Gross Margin Impact**: As the proportion of semiconductor masks in the revenue structure increases, it will have a positive impact on the company's overall gross margin [24]. - **Future Revenue Outlook**: The company will follow the national development strategy, increase investment and R & D, and implement the "screen - driven - chip" strategy for dual - wheel drive development of two product lines [24]. - **Domestic Flat - Panel Mask Market**: The domestic flat - panel photomask market space is expected to be close to 1 billion RMB in the next 3 - 5 years. The current localization rate is about 20%, and the situation of industry scale improvement and domestic substitution can support domestic manufacturers' expansion [25]. - **Mask Replacement and Attribute**: Mask replacement depends on downstream product diversity, usage frequency, process requirements, and technology iteration. Masks are consumable - like molds [25]. - **Industry Development Prospect**: The mask industry is closely related to downstream industries. It is less affected by the downstream cycle, with a stable - to - rising average price. The company has local advantages, and downstream customers have a strong willingness for domestic substitution. Downstream applications and technological evolution drive the industry into a high - prosperity cycle [26][28]. - **Profit Growth Drivers**: Multiple expansion projects are advancing steadily, including the "High - Precision Semiconductor Mask and Large - Size Flat - Panel Display Mask Expansion" project, the Luxin Semiconductor project, and the "Xiamen Luwei Optoelectronics High - Generation High - Precision Photomask Production Base Project", which will expand production capacity and enhance the company's competitiveness [29]. - **Financial Performance**: In 2024, the company's revenue was 875.5487 million yuan, a year - on - year increase of 30.21%. The net profit attributable to the parent was 190.8622 million yuan, a year - on - year increase of 28.27%. In the first quarter of 2025, the revenue was 260.08 million yuan, a year - on - year increase of 47%. The net profit attributable to shareholders of the listed company increased by 20% year - on - year, and the growth rate would be higher than the revenue growth rate if the exchange gain or loss was excluded [30][32].

Investment Rating - The report maintains an "Outperform" rating for the chemical industry, indicating a positive outlook based on current valuations and expected demand recovery [1]. Core Insights - The basic chemical industry showed a year-on-year recovery in profitability in Q1 2025, with revenue and net profit increasing by 5.58% and 13.33%, respectively [4][45]. - The oil and petrochemical sector's performance remains stable despite short-term fluctuations in oil prices, with a slight decline in revenue and net profit [27][33]. - The report highlights that the construction projects in the basic chemical sector experienced a negative growth for the first time in five years, indicating potential challenges ahead [20]. Summary by Sections Industry Overview - In Q1 2025, the basic chemical industry achieved total revenue of 534.57 billion yuan and a net profit of 34.26 billion yuan, marking the first year-on-year growth in nearly three years [4][5]. - The oil and petrochemical sector reported total revenue of 1,931.83 billion yuan, a decrease of 6.78% year-on-year, with net profit declining by 6.35% [27][30]. Profitability Metrics - The basic chemical industry's gross margin and net margin improved to 16.91% and 6.63%, respectively, with a return on equity (ROE) of 1.85% [11][45]. - The oil and petrochemical sector maintained a gross margin of 19.19% and a net margin of 5.74%, with a slight decrease in ROE to 2.82% [33][38]. Sub-industry Performance - Among 33 sub-industries in the basic chemical sector, 22 reported revenue growth, with significant increases in other chemical raw materials (+29.08%) and compound fertilizers (+25.84%) [4][10]. - The oilfield services segment within the oil and petrochemical sector saw a robust net profit growth of 29.82% [27][31]. Construction and Investment Trends - The basic chemical sector's construction projects totaled 363.16 billion yuan, reflecting a 6.04% year-on-year decrease, the first negative growth in five years [20][23]. - The oil and petrochemical sector's construction projects increased by 8.23% to 582.72 billion yuan, indicating ongoing investment despite revenue declines [40][41]. Market Valuation - As of May 11, 2025, the price-to-earnings (P/E) ratio for the basic chemical sector was 21.92, and for the oil and petrochemical sector, it was 10.58, both indicating low historical valuations [1][23].

Group 1 - The core viewpoint is that the AI infrastructure and factory market is in its early stages and is expected to grow from several hundred billion to over 10 trillion USD in the next decade [1] - NVIDIA's CEO Jensen Huang emphasizes the importance of advanced packaging for AI development, stating that current options are limited to CoWoS due to the stagnation of Moore's Law [1] - Huang highlights that NVIDIA is committed to driving the development of advanced packaging technologies, using their own larger chips as an example of how they utilize CoWoS for integration [1] Group 2 - NVIDIA's product planning involves annual upgrades, where improving equipment efficiency can significantly increase data center revenues while reducing costs [2] - The company advises clients to adopt a gradual purchasing strategy to avoid over-investment in outdated technology, ensuring continuous cost reduction [2] - Huang mentions the need for greater manufacturing resilience and diversification globally, with some production remaining in the U.S. while maintaining national security [2]

Investment Rating - The report does not explicitly state an investment rating for the semiconductor advanced packaging industry Core Insights - Advanced packaging technology is a critical link between chip design and application, significantly enhancing chip performance and reducing power consumption while alleviating constraints in high-end chip manufacturing processes. The Chinese government places high importance on the development of the semiconductor industry, implementing various policies to support independent innovation and technological breakthroughs, making research into China's semiconductor advanced packaging industry particularly significant [2] Summary by Sections Overview of the Semiconductor Packaging Industry - Packaging is a core process in semiconductor manufacturing, involving the placement, fixation, sealing of chips, and connecting chip contacts to the packaging shell [14][18] - The four core functions of packaging include physical protection, mechanical support, electrical connection, and thermal management [17] Development of Packaging Technology - The development of semiconductor packaging technology can be divided into four stages, with the current global packaging technology being in the advanced packaging stage [19][21] - The core goals of packaging technology evolution include miniaturization, improved electrical performance, enhanced thermal management, and cost reduction [21] Market Analysis - The Chinese semiconductor packaging market is expected to reach 355.19 billion yuan by 2025, with advanced packaging accounting for 32% of the market [45][47] - The global packaging testing market is projected to grow from $51 billion in 2016 to $72.27 billion by 2025, with advanced packaging expected to capture half of the market share [47] Advanced Packaging Manufacturers Overview - Global advanced packaging market participants include IDM, Foundry, and OSAT manufacturers, with leading companies adopting a "large platform + technology branch" architecture covering various advanced packaging technologies [51] - Major OSAT manufacturers in mainland China have formed industrial capabilities in advanced packaging through independent research and mergers, covering a wide range of applications from consumer electronics to AI chips [7]

Investment Rating - The report does not explicitly state an investment rating for the semiconductor advanced packaging industry Core Insights - Advanced packaging technology is a critical link between chip design and application, significantly enhancing chip performance and reducing power consumption while alleviating constraints in high-end chip manufacturing processes [2] - The Chinese government places high importance on the development of the semiconductor industry, implementing various policies to support independent innovation and technological breakthroughs [2] - The advanced packaging market is expected to grow rapidly, with China's packaging market projected to reach 355.19 billion yuan by 2025, with advanced packaging accounting for 32% of the market [45][47] Summary by Sections Overview of the Semiconductor Packaging Industry - Packaging is a core process in semiconductor manufacturing, involving the placement, fixation, sealing of chips, and connecting chip contacts to the package shell [14][18] - The development of semiconductor packaging technology can be divided into four stages, with the current stage being advanced packaging [19][21] Advanced Packaging Technology Types - The global advanced packaging market includes IDM, Foundry, and OSAT manufacturers, with leading companies adopting a "large platform + technology branch" architecture [4][51] - Major OSAT manufacturers in China have formed industrial capabilities through independent research and acquisitions, covering a wide range of applications from consumer electronics to AI chips [7] Market Dynamics - The global packaging testing market is expected to grow from $51 billion in 2016 to $72.27 billion by 2025, with advanced packaging projected to capture half of the market share [47] - China's packaging testing market is growing at a compound annual growth rate (CAGR) of 12.54%, significantly higher than the global market's 3.89% [47] Importance of Advanced Packaging - Advanced packaging is essential for integrating multiple functions within a system, enhancing overall system performance beyond the limitations of Moore's Law [35][38] - The report highlights that advanced packaging can improve chip performance without shrinking process nodes, addressing the rising costs associated with advanced process development [39][44]

Investment Rating - The report rates the chemical industry as "Outperform the Market" [1] Core Views - The industry is significantly influenced by tariff-related policies and fluctuations in crude oil prices, suggesting a balanced allocation strategy. Focus is recommended on companies in electronic materials with increasing self-sufficiency and energy firms with stable dividend policies [1][10] - The report highlights the potential for sustained high oil prices, ongoing high demand in the oil and gas extraction sector, and the rapid development of downstream industries, particularly in new materials [10] Industry Dynamics - In the week of May 12-18, 2025, among 100 tracked chemical products, 43 saw price increases, 32 saw declines, and 25 remained stable. The average price of WTI crude oil increased by 2.41% to $62.49 per barrel, while NYMEX natural gas prices fell by 12.37% to $3.33 per mmbtu [9][10] - MDI prices rose, with the average price for polymer MDI at 16,500 CNY/ton, an increase of 8.55% week-on-week. The average price for pure MDI was 17,800 CNY/ton, up 2.89% [10] - Polyester staple fiber prices increased to 6,710 CNY/ton, a rise of 5.17% week-on-week, with production expected to be around 167,000 tons [10] Investment Recommendations - The report suggests a focus on companies with strong dividend policies and those involved in electronic materials, particularly in semiconductor and OLED materials, as well as new energy materials [10] - Recommended stocks include China Petroleum, China Oilfield Services, and several technology firms such as Anji Technology and Yake Technology [10] - The report emphasizes the importance of policy support for demand recovery and suggests monitoring leading companies with high earnings elasticity [10] Key Metrics - As of May 18, 2025, the price-to-earnings ratio for the SW basic chemicals index is 22.09, at the 61.89% historical percentile, while the price-to-book ratio is 1.80, at the 11.72% historical percentile [10]

Investment Rating - The report maintains an "Outperform" rating for the chemical industry, indicating a positive outlook based on expected economic recovery and demand improvement [1]. Core Insights - The basic chemical industry is expected to see a recovery in profitability, with 2024 revenues projected to reach CNY 2,219.98 billion, a year-on-year increase of 2.66%, while net profit is expected to decline by 8.18% to CNY 108.87 billion [6][26]. - The oil and petrochemical sector is anticipated to maintain stable revenues and profits, with 2024 revenues estimated at CNY 7,941.40 billion, a decrease of 2.81%, and net profit expected to grow by 0.58% to CNY 372.14 billion [1][26]. - The report highlights that 23 out of 33 sub-industries in the basic chemical sector experienced revenue growth in 2024, with significant increases in chlor-alkali and textile chemicals [6][15]. Summary by Sections Industry Overview - The basic chemical industry is experiencing a decline in profitability, with gross and net profit margins at 16.27% and 5.13%, respectively, both down from 2023 [26]. - The report notes that the industry has been in a continuous decline in profitability from 2022 to 2024, but signs of stabilization are emerging [26]. Sub-Industry Performance - In 2024, chlor-alkali and textile chemicals showed the highest profit growth rates at 262.84% and 125.27%, respectively [15][26]. - Conversely, non-metallic materials and other plastic products faced significant profit declines of 79.24% and 67.49% [15][26]. Quarterly Analysis - For Q4 2024, the basic chemical industry reported revenues of CNY 565.72 billion, a year-on-year increase of 5.15%, but a quarter-on-quarter decline of 0.90% [6][7]. - Net profit for Q4 2024 was CNY 14.16 billion, down 10.73% year-on-year and 51.03% quarter-on-quarter [6][7]. Investment Recommendations - The report suggests focusing on companies in rapidly developing downstream sectors, particularly in new materials, energy security, and policy-driven demand recovery [1][26]. - Recommended companies include China National Petroleum, China National Offshore Oil, and various technology firms in the semiconductor and new energy materials sectors [1][26].