Core Viewpoint - The recent equity change in the domestic lithography machine sector, where Shanghai Micro Electronics Equipment (Group) Co., Ltd. completely exited its 100% stake in Shanghai Weiyao Industrial Co., Ltd., transferring it to Shanghai Chip-on-Micro Technology Co., Ltd., indicates a strategic adjustment in the industry layout, clarifying the division of labor between core technology research and market implementation [2][3]. Group 1 - The transaction involves two companies in the lithography machine field, enhancing the industrial synergy beyond mere asset transfer [3]. - Shanghai Micro Electronics is the leading player in domestic lithography machines, focusing on core technology development, while Chip-on-Micro has recently made strides in the market, having won a procurement contract for a 6-inch stepper lithography machine [3][4]. - The relationship between Chip-on-Micro and Shanghai Micro Electronics is not just that of competitors but is characterized by a close connection, as Chip-on-Micro was spun off from Shanghai Micro Electronics in 2025, with clear positioning for each company [4]. Group 2 - Both companies share common directors and core shareholders, facilitating technical collaboration and resource sharing, which is further solidified by the acquisition of Weiyao Industrial [5]. - The divestiture of non-core assets like Weiyao Industrial allows Shanghai Micro Electronics to concentrate on advancing core technologies, crucial for breaking through overseas technology barriers [5][6]. - Chip-on-Micro's market-oriented approach is expected to enhance its competitiveness in the mid-to-low-end lithography machine market, as evidenced by its recent contract win [5][6].