Core Viewpoint - The emergence of New Kai Lai in the semiconductor industry could signify a strategic shift, particularly if it successfully advances to 3nm technology, potentially altering the balance of power in the semiconductor supply chain and reducing Western control over critical technologies [1] Group 1: Industry Impact - The breakthrough in 3nm technology by New Kai Lai would alleviate the bottleneck in lithography, which is crucial for semiconductor manufacturing, thereby enhancing the competitive position of Eastern companies [1] - New Kai Lai's rise is expected to have a long-term positive impact on the upstream supply chain of equipment components and semiconductor manufacturing materials [1] Group 2: Domestic Demand and Capabilities - Domestic computing power demand has been suppressed due to a lack of high-end chips, which in turn is caused by insufficient advanced manufacturing capabilities [1] - If high-end manufacturing capabilities improve rapidly, similar to Western advancements, the release of computing power in the domestic market could be significant [1] Group 3: Recent Developments - At the 2025 SEMICON China exhibition, New Kai Lai introduced the ALD "Ali Mountain" atomic layer deposition equipment for sub-5nm film deposition and the Wuyishan series etching equipment supporting advanced processes below 5nm [1] - New Kai Lai's self-developed SAQP technology, in collaboration with Huawei's HiSilicon, has improved the precision of DUV lithography machines by 300%, achieving 5nm processes [1] - A collaboration with SMIC has led to the trial production of 5nm logic chips, achieving a wafer yield of 85%, which is close to TSMC's EUV process yield of 90% [1]