Core Insights - The article highlights the significant advancements in Shenzhen's semiconductor industry, particularly through the emergence of new companies like Wanliyan and Qiyunfang, which are breaking Western technology barriers in high-end testing equipment and EDA software [1][4][11] - Shenzhen's semiconductor sector is transitioning from a design-centric model to a more comprehensive ecosystem that includes manufacturing and equipment development, supported by government initiatives [4][5][11] Group 1: Industry Developments - Wanliyan launched a 90GHz "ultra-fast real-time oscilloscope," ranking second globally and first domestically, marking a breakthrough in high-end testing equipment previously restricted by Western export controls [1] - The chip design industry in China is experiencing growth, with sales projected to reach 668.93 billion yuan in 2024, a 13.2% increase from 2023, and the number of design firms rising to 3,626 [2] - Shenzhen is home to 727 integrated circuit companies, with design firms accounting for 68% of revenue, indicating a strong focus on design innovation [2] Group 2: Government Support and Strategic Initiatives - The Shenzhen government has implemented measures to promote high-quality development in the integrated circuit industry, including a 5 billion yuan private equity fund aimed at strengthening the semiconductor supply chain [4] - The shift in strategy from "flooding the market" to "building channels" reflects a more strategic approach to supporting the semiconductor industry, focusing on long-term sustainability [4][5] Group 3: Manufacturing and Equipment Focus - The manufacturing sector is becoming increasingly important, with companies like Fangzheng Microelectronics leading in SiC chip production, emphasizing the need for stable mass production capabilities [5][6] - Local equipment manufacturers, such as Aixin Semiconductor, are gaining prominence by focusing on specialized measurement and testing equipment for semiconductor fabrication [6][7] Group 4: Ecosystem and Market Dynamics - The semiconductor ecosystem in Shenzhen is diversifying, with a growing number of companies engaging in equipment development and materials research, supported by local government incentives [7][8] - Companies like Guowei Chip are innovating in the EDA space, highlighting the importance of government support for long-term investment in the semiconductor industry [10][11] Group 5: Future Outlook - Shenzhen's semiconductor industry is moving towards a more integrated approach, aiming to create a complete local semiconductor toolchain that enhances efficiency from design to mass production [11][12] - The industry is expected to face fluctuations, with a potential demand peak anticipated around 2026 to 2027, indicating the need for companies to adapt to market cycles [7][8]