Summary of Semiconductor Industry Conference Call Industry Overview - The semiconductor industry in Greater China is experiencing solid demand, with notable growth in integrated circuit (IC) production and import/export values. [1][2] Key Metrics - **IC Import/Export Values**: - IC import value increased by **13.9% YoY** in November 2025, compared to **10.2% YoY** in October 2025. [1][14] - IC export value rose by **34.2% YoY** and **10.5% MoM** to **US$18.5 billion** in November 2025. [10][25] - **Production Growth**: - IC production volume grew by **17.7% YoY** in October 2025, reaching **42 billion units**. [4][28] - **Revenue Growth**: - Total semiconductor revenues in October 2025 were up **20.6% YoY**, amounting to **US$19.5 billion**. [5][19] - Taiwan's semiconductor revenue growth was **18.4% YoY** in November 2025. [5][29] Market Dynamics - The increase in IC import average selling price (ASP) was **11.5% YoY** in November 2025. [1] - The days of inventory (DOI) in China's electronics sector was **55 days** in October 2025, above the average of previous years. [1][17] - The semiconductor sector is supported by advancements in generative AI, RISC V technology, and local suppliers gaining market share. [2][4] Investment Recommendations - Analysts recommend a "Buy" rating for several companies, including: - **Kematek** - **SMIC** (Target Price raised to **HK$134**) - **Hua Hong** (Upgraded to Buy) - **AMEC**, **VeriSilicon**, **Horizon Robotics** (Target Price raised to **HK$15.3**) [3][50] Equipment and Bidding Trends - Recent bidding activities from semiconductor manufacturers indicate a positive outlook for capital expenditures (capex) in the coming years. [11][41] - Specific equipment bids include photoresist stripping and inspection equipment, reflecting ongoing investments in production capabilities. [11] Additional Insights - The semiconductor test equipment import value decreased by **32.4% YoY** to **US$41.6 million** in October 2025. [9][34] - The lithography import volume saw a significant decline of **42% YoY**, while the ASP increased by **225% YoY**. [9][32] This summary encapsulates the key points from the conference call regarding the semiconductor industry, highlighting growth metrics, market dynamics, investment recommendations, and equipment trends.

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the semiconductor industry in Greater China, highlighting the trends in integrated circuit (IC) production, imports, and exports during September and October 2025 [1][2][4]. Key Points IC Production and Import Trends - IC production in China showed a positive year-over-year (YoY) growth of **5.9%** in September 2025, compared to **3.2%** in August 2025, with a total production volume of **44 billion units** [4][13][20]. - The import value of ICs increased by **10.2%** YoY in October 2025, down from **14.1%** in September 2025, indicating a slight slowdown in growth [1][15]. - The import volume of ICs rose by **4.9%** YoY in October 2025, compared to **11.7%** in September 2025, suggesting a decrease in the growth rate of imports [1][18]. Export Performance - IC export value reached **US$16.7 billion** in October 2025, reflecting a **26.9%** YoY increase but a **12.3%** month-over-month (MoM) decline [10][28]. - Year-to-date (YTD) export value for 2025 reached **US$161.9 billion**, representing a **23.2%** YoY increase [10]. Semiconductor Revenue - Total semiconductor revenues in China were reported at **US$18.7 billion** in September 2025, marking a **16.5%** YoY increase and a **6.0%** MoM increase [5][22]. - Taiwan's semiconductor revenue growth was **12.5%** YoY in October 2025, with a **6.4%** MoM increase [5][31]. Inventory and Market Dynamics - The days of inventory (DOI) in China's electronics sector stood at **49 days** in September 2025, above the average levels of previous years [1][18]. - The ongoing demand for semiconductors is supported by advancements in generative AI and automotive technologies such as Advanced Driver Assistance Systems (ADAS) [2][4]. Investment Recommendations - Analysts recommended a "Buy" rating for several companies, including Kematek, SMIC, Hua Hong, and others, based on strong company-specific drivers and market trends [3][50]. Equipment Imports - The import value of semiconductor test equipment surged by **31.9%** YoY to **US$56.7 million** in September 2025, indicating robust demand for testing capabilities [9][36]. - The import value of semiconductor production equipment (SPE) increased by **35.3%** YoY to **US$5.8 billion** in September 2025 [9][26]. Bidding Activity - Continuous bidding activity from Chinese semiconductor manufacturers was noted, indicating a positive outlook for capital expenditures (capex) in the coming years [11][42]. Conclusion - The semiconductor industry in Greater China is experiencing solid growth, driven by technological advancements and increasing demand. The trends in production, imports, and exports reflect a dynamic market environment, with significant investment opportunities identified in key companies within the sector.

Summary of Semiconductor Industry Conference Call Industry Overview - **Industry**: Semiconductor Industry in Greater China - **Key Metrics**: - IC import/export value increased by +14.1% YoY and +32.7% YoY respectively in September 2025 [1][10] - IC import volume rose by +11.7% YoY in September 2025, compared to +2.1% YoY in August 2025 [1] - IC production growth was +3.2% YoY in August 2025, down from +15.0% YoY in July 2025 [4][12] Core Insights - **Demand Trends**: - The semiconductor demand in the China market is increasing, supported by advancements in generative AI and automotive technologies [2][4] - Positive growth in IC production and import values indicates a recovery trend in the semiconductor sector [4][21] - **Production and Inventory**: - China's electronics sector had an average of 58 days of inventory in August 2025, lower than previous years (67/57/60 days in August 2024/2023/2022) [23] - The production volume of ICs was 43 billion units in August 2025, reflecting a month-over-month decline of -9.4% [4][12] Financial Performance - **Revenue Growth**: - Total semiconductor revenues in August 2025 were up 13.9% YoY to US$17.6 billion, compared to +12.0% YoY in July 2025 [5][21] - Taiwan's semiconductor revenue grew by +23.8% YoY in September 2025 [5][31] - **Investment Recommendations**: - Companies recommended for investment include Kematek, SMIC, Hua Hong, AMEC, and others, indicating a bullish outlook on these stocks [3] Additional Insights - **Equipment Imports**: - SPE (semiconductor production equipment) import value increased by +8.3% YoY in August 2025, while semiconductor test equipment imports saw a significant decline of -41.3% YoY [9][25][36] - Lithography machine imports showed a decrease in volume (-2% YoY) but an increase in average selling price (+57% YoY) [34][39] - **Bidding Activity**: - Continuous bidding activity from semiconductor manufacturers in China suggests an upward trend in capital expenditures, with several companies placing orders for advanced manufacturing equipment [11][42] Conclusion - The semiconductor industry in Greater China is experiencing a positive growth trajectory, driven by technological advancements and increasing demand. The financial performance of key players is robust, with significant year-over-year revenue growth. Investment in specific companies is recommended based on their strong market positions and growth potential.

Investment Rating - The report upgrades the investment rating for several companies in the semiconductor sector to "Buy," including Cambricon, SMIC, AMEC, and VeriSilicon [2][62]. Core Insights - The semiconductor industry in Greater China is experiencing a positive trend, driven by increased market demand, particularly in advanced technologies such as generative AI and ADAS [3][4]. - The report highlights a significant year-over-year growth in integrated circuit (IC) production and imports, indicating a recovery from previous weak seasons [1][3]. - The overall semiconductor revenue in China showed a 9% year-over-year increase in March 2025, reflecting a steady recovery from earlier months [4][27]. Summary by Sections IC Production and Imports - IC production volume in March 2025 increased by 9.2% year-over-year, reaching 42 billion units, compared to a 4.4% increase in January and February 2025 [1][25]. - IC import value rose by 11.1% year-over-year to US$35 billion in April 2025, while import volume increased by 7.6% year-over-year to 50 billion units [9][19]. - The average selling price (ASP) of IC imports increased by 3.3% year-over-year in April 2025 [1][21]. Market Demand and Revenue - The report indicates that the semiconductor market is benefiting from strong company-specific drivers, including new product launches and market share gains [2][3]. - Taiwan's semiconductor revenue grew by 34.1% year-over-year in April 2025, with foundry revenues up by 43.7% year-over-year [7][8]. - The total revenue for China's semiconductor sector reached US$15.4 billion in March 2025, marking a continued growth trend [4][27]. Inventory and Supply Chain - The days of inventory (DOI) for China's electronics sector was reported at 53 days in March 2025, consistent with historical averages [1][17]. - The report notes a healthy inventory level, suggesting stability in the supply chain for semiconductor manufacturers [4][17].