Market Overview - The A-share market is experiencing a volatile bull market, with the Shanghai Composite Index breaking through the previous high of 3888 points, setting a new annual high [2][3][16] - The technology sector remains the main driving force of the market, with expectations for continued performance despite recent fluctuations [2][3][16] - The overall market sentiment is mixed, with more stocks declining than rising, indicating a cautious approach among investors [5][19] Sector Analysis - The technology sector is expected to continue as the main focus, with potential for internal rotation and high-low switches within the sector [2][3][16] - Solid-state batteries and new technologies in the renewable energy sector are highlighted as areas of opportunity, particularly for leading companies with core technology reserves [2][3][16] - The cyclical sectors and high-end manufacturing are seen as key beneficiaries of economic recovery, presenting further investment opportunities [2][3][16] - The brokerage sector is benefiting from increased market activity, with direct profits from brokerage and margin financing businesses [2][3][16] Recent Performance - The three major indices have all reached new highs for the year, indicating a potential continuation of the volatile bull market [3][17] - The PPI in the US decreased by 0.1% in August, easing inflationary pressures and raising expectations for a more accommodative monetary policy from the Federal Reserve [3][17] - Trading volume has rebounded, with total trading exceeding 2.5 trillion yuan, indicating a return to a strong trading environment [3][17] Investment Strategy - For companies with strong fundamentals and clear industry prospects, maintaining positions is recommended [18] - It is advisable to reduce exposure to sectors that have seen excessive gains and high valuations [18] - Attention should be given to second-tier technology leaders, cyclical sectors, and brokerage stocks during market corrections for structural opportunities [18]

TSMC (2330.TW) Conference Call Summary Company Overview - **Company**: Taiwan Semiconductor Manufacturing Company (TSMC) - **Ticker**: 2330.TW - **Event**: Goldman Sachs Communacopia + Technology Conference 2025 - **Date**: September 8-11, 2025 - **Presenters**: Wendell Huang (CFO), Jeff Su (Head of Investor Relations) Key Industry Insights 1. **Advanced Node Capacity**: - TSMC's advanced node peak capacity is expected to be higher than previous nodes due to increased demand from smartphone and high-performance computing (HPC) sectors [2][3] - N2 technology is projected to contribute 11.5% of wafer revenue in 2026, significantly higher than N3's 5.1% in its first year [3] 2. **N3/N5 Capacity Growth**: - TSMC maintains over 90% tool commonality between adjacent advanced nodes, allowing for flexible capacity adjustments to meet AI demand [2][7] - The company plans to convert capacity from N7 to N5 and N5 to N3 to support strong AI demand, leading to tight capacity in advanced nodes [7] 3. **Advanced Packaging Expansion**: - TSMC is allocating 10-20% of capital expenditures to advanced packaging, which is expected to grow faster than the corporate average [2][8] - Advanced packaging is projected to account for over 10% of revenue in 2025, up from 8% in 2024, with increasing adoption in non-AI applications [8] 4. **Long-term Gross Margin (GM) Target**: - Despite overseas expansion plans, TSMC's long-term GM target of 53%+ remains achievable [2][9][11] - The company plans to mitigate GM pressure through geographical diversification, cost efficiency, and leveraging government support [11] 5. **Revenue Growth Forecast**: - TSMC reaffirms a close to 20% compound annual growth rate (CAGR) for the 2024-2029 period, with potential upside driven by strong N2 demand and tightness in N3 and N5 nodes [12] Financial Metrics - **Market Capitalization**: NT$32.2 trillion / $1.1 trillion - **Revenue Projections**: - 2024: NT$2,894.3 billion - 2025E: NT$3,667.9 billion - 2026E: NT$4,211.2 billion - 2027E: NT$4,873.4 billion - **EPS Projections**: - 2024: NT$45.25 - 2025E: NT$60.36 - 2026E: NT$68.49 - 2027E: NT$77.56 - **Price Target**: NT$1,370.00 (upside of 10.5%) [18] Investment Thesis - TSMC is positioned as a leading global foundry with over 60% market share, benefiting from its technology leadership in AI, 5G, HPC, and EV sectors [13][15] - The stock is rated as a "Buy" due to its attractive valuation and long-term growth prospects [14][15] Key Risks 1. Deterioration in end-demand recovery affecting capacity utilization [16] 2. Slower customer node migrations impacting revenue [16] 3. Delays in 5G penetration affecting semiconductor growth [16] 4. Poor yields or execution leading to profitability issues [16] 5. Increased competition affecting pricing and margins [16] 6. Unfavorable foreign exchange trends or cost increases impacting margins [16] Conclusion TSMC's strong positioning in advanced technology nodes and packaging, along with a robust growth forecast, supports a positive investment outlook despite potential risks associated with market dynamics and competition.

Benchmarking & Performance Evaluation - MLPerf and IO500 are trusted, third-party benchmarks that provide clarity for making informed decisions about AI and HPC infrastructure [1] - These benchmarks simulate real-world workloads to measure speed, scalability, and efficiency [1] - The session aims to equip decision-makers with the knowledge to evaluate storage solutions for AI and HPC environments confidently [1] Key Learning Objectives - Identify the most relevant benchmark results for AI & HPC decision-makers [1] - Understand what MLPerf and IO500 tests entail and their significance [1] - Translate performance and scalability metrics into tangible business outcomes [1] DDN's Position - DDN demonstrates leadership in AI performance, offering benefits to users [1] Expertise - The session features technical experts from DDN, including Joel Kaufman, Jason Brown, and Louis Douriez [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][21] Core Views - The company reported a revenue of 5.2 billion yuan in H1 2025, representing a year-on-year growth of 17.1%, and a net profit attributable to shareholders of 1.4 billion yuan, up 18.0% year-on-year [5][6] - The company is focusing on high-performance advanced powder materials, with an increasing revenue share from high-end products, driven by the growing demand in advanced packaging and high-performance electronic circuit substrates [6][5] - The company aims to enhance its market share and competitive strength through continuous R&D and product upgrades, with a projected net profit of 3.1 billion yuan for 2025 [6][5] Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 5.2 billion yuan, with a net profit of 1.4 billion yuan, and a non-recurring net profit of 1.3 billion yuan [5] - For Q2 2025, the company reported a revenue of 2.8 billion yuan, a year-on-year increase of 16.4%, and a net profit of 0.8 billion yuan, up 14.9% year-on-year [5] Product Development - The company is focusing on high-end chip packaging and advanced packaging materials, with a notable increase in the revenue share of high-end products [6] - The company plans to issue convertible bonds to raise up to 720 million yuan for projects aimed at enhancing production capacity for high-performance materials [6] Profitability and Valuation - The company's gross margin and net margin for H1 2025 were 40.8% and 26.7%, respectively [6] - The adjusted profit forecasts for 2025-2027 are 3.1 billion, 4.3 billion, and 5.5 billion yuan, with corresponding P/E ratios of 40.7, 29.6, and 23.0 [6][3]

Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [4][9]. Core Views - The company has shown strong performance in the first half of 2025, with revenue reaching 519 million yuan, a year-on-year increase of 17.12%, and a net profit of 139 million yuan, up 18.01% year-on-year [4]. - The demand for high-performance materials is driving growth, particularly in advanced packaging and high-performance electronic circuit boards, which has led to a steady increase in market share [4][5]. - The company is focusing on high-end powder materials and has launched several new products to meet the growing needs in AI, 5G, and electric vehicle sectors [5][6]. Financial Performance - For the first half of 2025, the company achieved a revenue of 281 million yuan in Q2, with a quarter-on-quarter increase of 16.38% and a year-on-year increase of 17.55% [4]. - The net profit for Q2 2025 was 76 million yuan, reflecting a quarter-on-quarter increase of 14.89% and a year-on-year increase of 19.94% [4]. - The projected net profits for 2025, 2026, and 2027 are 290 million yuan, 340 million yuan, and 390 million yuan, respectively, with corresponding P/E ratios of 50, 42, and 37 [9][11]. Market Trends - The global CCL market is expected to grow at a compound annual growth rate (CAGR) of 9% from 2024 to 2026, with the high-end CCL market projected to grow at a CAGR of 26% during the same period [7]. - The demand for ultra-pure spherical silica is increasing due to its critical role in high-performance circuit boards, which require materials with low dielectric loss to enhance signal integrity [7][8]. Investment Projects - The company is investing 720 million yuan in convertible bonds, with 423 million yuan allocated to high-performance substrate materials and 388 million yuan to high thermal conductivity materials [6]. - The high-performance substrate project is expected to generate sales revenue of 659 million yuan upon reaching full production, while the high thermal conductivity project is projected to achieve 310 million yuan in sales [6].

Investment Rating - The report suggests a positive investment outlook for the semiconductor foundry industry, particularly driven by AI and automotive electronics demand [5]. Core Insights - The semiconductor foundry industry is experiencing a significant growth phase, with global semiconductor sales expected to exceed $1 trillion by 2030, growing at a CAGR of 9% from 2025 to 2030 [4][39]. - TSMC dominates the foundry market with a 60% market share, while SMIC, Hua Hong Semiconductor, and others are emerging as key players in the Chinese market [47][52][58]. Summary by Sections Industry Overview - Wafer foundry refers to the manufacturing of semiconductor wafers for other IC design companies without engaging in design itself. It is a crucial segment of the semiconductor industry [3][10]. - The industry is characterized by high capital and technology intensity, with significant investments required for advanced process nodes [22][23]. Market Dynamics - The global semiconductor wafer capacity is projected to grow from 31.5 million wafers per month in 2024 to 33.7 million in 2025, with a growth rate of 6% and 7% respectively [4][37]. - The demand for chips is driven by sectors such as AI, HPC, and automotive electronics, leading to increased R&D investments in advanced process technologies [29][39]. Key Players in China - SMIC is a leading foundry in China, achieving significant revenue growth and technological advancements, including the production of 14nm FinFET technology [52][54]. - Hua Hong Semiconductor is recognized for its comprehensive specialty process platform, focusing on various technology segments [58]. - Jinghe Integrated Circuit has achieved global leadership in the LCD driver chip foundry market [65]. Competitive Landscape - The foundry market is characterized by a "one strong, many strong" competitive structure, with TSMC as the clear leader, followed by Samsung and SMIC [47]. - The report highlights the increasing market share of SMIC, which has risen to third place in the global foundry rankings [47][49]. Future Trends - The report anticipates continued growth in advanced processes (28nm and below) and specialty processes, driven by the rising demand for high-performance computing and AI applications [5][39]. - The foundry industry is evolving towards a "Foundry 2.0" model, which includes not only wafer manufacturing but also packaging, testing, and other integrated services [24].

半导体产业技术快速迭代，公司高阶球形材料需求有望加速释放。据WSTS数据，2025 年上半年全球半 导体销售额达3460 亿美元，同比增加18.9%，半导体产业迎来景气周期，需求保持较强劲的增势。随着 AI、5G、HPC 等领域的快速发展，半导体先进封装材料和高频高速覆铜板等行业需求加速释放。据 Yole 数据，全球先进封装市场2023-2029 年复合年增长率有望达10.7%；据 Goldman Sachs Global Inves tment Res earch 预计，全球高阶CCL（HDI&高速高频）市场 2024-2026 年复合增长率有望达26%。新兴 领域技术的加速迭代，有望带动高阶球硅球铝等功能性粉体材料需求增长，公司拥有四十余年先进粉体 材料技术积累，球形产品具有行业领先的电性能、低CUT 点、高填充率、高纯度、低介电损耗、高导 热等优良特性，精准满足新一代芯片封装材料和高性能覆铜板客户的需求。 投资建议：公司是国内电子级硅微粉领先生产商，产能规模居前，随着新建的超纯球形产品在未来逐步 投产放量，公司整个销售规模将进一步扩大，同时随着多个规格高阶产品（Low α微米/亚微米球形二氧 化硅、低钠 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock price relative to the industry index over the next six months [5]. Core Views - The company is positioned as a leading domestic supplier of functional powder materials, expected to benefit from the explosive growth in advanced packaging, with a projected compound annual growth rate (CAGR) of 10.7% in the global advanced packaging market from 2023 to 2029 [5]. - The company's high-end products, particularly spherical inorganic powders, are experiencing significant growth, driven by the expanding market for high-bandwidth memory (HBM) packaging materials and increasing demand for high-performance electronic circuit substrates [3][4]. - The financial performance shows a strong upward trend, with a 17.12% year-on-year increase in revenue for the first half of 2025, and a 18.01% increase in net profit [11]. Financial Summary - For 2023, the company expects revenue of 712 million yuan, with a year-on-year growth rate of 7.5%. By 2027, revenue is projected to reach 1,637 million yuan, with a growth rate of 12.5% [15]. - The net profit attributable to the parent company is forecasted to be 174 million yuan in 2023, increasing to 488 million yuan by 2027, reflecting a growth rate of 17.0% [15]. - The company's return on equity (ROE) is expected to improve from 12.9% in 2023 to 20.2% in 2027, indicating enhanced profitability [15]. Revenue Breakdown - In the second quarter of 2025, the company reported a revenue of 281 million yuan, a quarter-on-quarter increase of 17.55%, and a net profit of 76 million yuan, up 19.94% from the previous quarter [9][10]. - The revenue from spherical inorganic powders and others is projected to be approximately 2.0 to 2.1 billion yuan in the second quarter of 2025, accounting for 74% of total revenue [3]. Market Trends - The demand for advanced packaging materials is accelerating due to developments in AI, high-performance computing (HPC), and automotive sectors, which is expected to drive the market for functional advanced powder materials [4]. - The company is focusing on high-end product research and development to capitalize on these market trends, particularly in the areas of thermal materials for electric vehicles and high-performance circuit boards [4].

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation that the stock will outperform the market by 10% to 20% over the next six months [11]. Core Views - The semiconductor industry is experiencing a rapid technological iteration, leading to an accelerated demand for high-end spherical materials. The global semiconductor sales reached $346 billion in the first half of 2025, marking an 18.9% year-on-year increase, indicating a strong growth momentum in the industry [7]. - The company is positioned as a leading producer of electronic-grade silicon micro-powder in China, with plans to expand its production capacity for high-purity spherical products, which are expected to contribute significantly to revenue growth [8]. - The company reported a revenue of 519 million yuan in the first half of 2025, a year-on-year increase of 17.12%, and a net profit attributable to shareholders of 139 million yuan, up 18.01% year-on-year [4]. Financial Summary - The company’s revenue projections for the upcoming years are as follows: 960 million yuan in 2024, 1.192 billion yuan in 2025, 1.444 billion yuan in 2026, and 1.724 billion yuan in 2027, with year-on-year growth rates of 34.9%, 24.1%, 21.2%, and 19.4% respectively [6]. - The net profit attributable to shareholders is expected to reach 316 million yuan in 2025, 398 million yuan in 2026, and 491 million yuan in 2027, with corresponding year-on-year growth rates of 25.9%, 25.7%, and 23.4% [6]. - The company’s gross margin is projected to improve from 40.4% in 2024 to 44.0% in 2027, while the net margin is expected to increase from 26.2% to 28.5% over the same period [6]. Industry Outlook - The advanced packaging market is projected to grow at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2029, while the high-end CCL market is expected to see a CAGR of 26% from 2024 to 2026, driven by advancements in AI, 5G, and high-performance computing [7]. - The company plans to raise 720 million yuan through convertible bonds to fund the construction of high-performance ultra-pure spherical silica and high thermal conductivity spherical alumina projects, addressing capacity shortages and enhancing its competitive position in the market [7].

Moving Infrastructure Forward Q2 2025 Update Presentation August 14, 2025 1 SAFE HARBOR STATEMENT This presentation is for informational purposes only and contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are sta ...