Core Viewpoint - SMIC (Semiconductor Manufacturing International Corporation) is experiencing a significant rise in its market value, recently surpassing 1 trillion RMB, driven by advancements in domestic chip manufacturing and increasing demand for AI-related applications [1][2][19]. Group 1: Company Performance and Market Position - As of September 19, 2025, SMIC's A-share price closed at 121.34 RMB, with a total market value of 970.63 billion RMB, reflecting a 30.47% increase since the beginning of the year [1]. - The company's A-share price-to-earnings ratio exceeds 200, significantly higher than TSMC's ratio of less than 20 [1]. - SMIC has become the only wafer foundry in mainland China capable of mass production with advanced process technology, marking a substantial leap in China's chip manufacturing capabilities [1][2]. Group 2: Key Events Timeline - July 2020: SMIC went public on the STAR Market, raising 53.23 billion RMB, with a market value of 613.7 billion RMB on the first trading day [7]. - December 2020: The U.S. placed SMIC on the Entity List, imposing export restrictions, which initially caused a drop in stock price but was countered by domestic policy support [8][9]. - March 2021: SMIC reported a revenue of 27.47 billion RMB, a 39% increase year-on-year, and a net profit of 4.33 billion RMB, a 142% increase, boosting market confidence [9]. - July 2022: Reports indicated that SMIC achieved advanced chip production without overseas equipment, marking a significant milestone [10]. - September 2025: SMIC's market value crossed the 1 trillion RMB mark, driven by various factors including asset consolidation and improved market sentiment [15]. Group 3: Industry Dynamics and Future Outlook - The semiconductor industry is currently in a down cycle, but SMIC's domestic market demand is expected to ensure its production capacity remains viable [16]. - Analysts predict that the demand for AI applications will drive long-term growth for SMIC, with expectations of increased utilization rates and pricing power for wafer foundries [19][20]. - SMIC's revenue for the first half of 2025 reached 32.35 billion RMB, with a net profit of 1.9 billion RMB, reflecting a 47.8% year-on-year increase [25]. - The company is also undergoing asset consolidation, planning to acquire a 49% stake in its subsidiary, SMIC North, which specializes in mature process technologies [28].

Industry Overview - EPS (Electric Power Steering) systems have become the mainstream design solution for automotive steering, replacing traditional hydraulic systems due to their high efficiency, safety, and environmental benefits [1][7] - The market size of China's EPS industry is projected to reach 38.2 billion yuan in 2024, with a year-on-year growth of 6.81% [1][7] - The industry is experiencing a clear upgrade trend, with DP-EPS (Dual Pinion Electric Power Steering) and R-EPS (Rack Electric Power Steering) systems achieving higher transmission efficiency compared to traditional systems [1][7] Market Size - The EPS market in China is expected to grow to 40.8 billion yuan by 2025, driven by increasing demand for comfort and safety in vehicles [11] - The rapid development of new energy vehicles (NEVs) is creating new opportunities for the EPS industry, as these vehicles require systems that can handle increased weight from battery packs [5][11] Key Companies - Leading companies in the EPS market include Bosch and Huayu Automotive, with domestic players like Nissin and Zhejiang Shibao gaining market share [8][9] - Zhejiang Shibao reported a revenue of 1.524 billion yuan in the first half of 2025, a year-on-year increase of 35.32%, with a net profit margin rising from 1.1% in 2022 to 5.5% in 2024 [9] - Bertli Automotive Safety Systems achieved a revenue of 5.164 billion yuan in the first half of 2025, reflecting a year-on-year growth of 30.04% [10] Industry Development Trends - Continuous technological innovation is driving the EPS industry towards higher efficiency and intelligence, with R-EPS and line-controlled steering systems (SBW) being key focus areas [11] - The industry is also seeing a push towards domestic production of core components, with local companies making significant technological advancements [11] - Environmental upgrades are being prioritized, with the adoption of recyclable materials and reduced emissions in production processes [12]