Core Insights - The semiconductor industry is crucial for the artificial intelligence (AI) revolution, indicating significant investment opportunities in this sector [1] - ETFs like Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) provide exposure to semiconductor equities, including major players like Nvidia, making them attractive for investors seeking diversified investments without stock selection [1] Semiconductor Industry Outlook - The global semiconductor industry is projected to reach annual sales of US$975 billion by 2026, driven by a booming AI infrastructure [1] - Growth rates are expected to be 22% in 2025 and accelerate to 26% in 2026, with a potential for annual sales to reach US$2 trillion by 2036, even if growth moderates thereafter [1]

Trade Agreement Overview - The U.S. and Taiwan have reached a trade and investment agreement that caps tariff rates on imports from Taiwan at 15% [1] - The agreement includes reciprocal duties on goods from Taiwan and sector-specific levies on items such as auto parts, timber, and wood derivative products [2] Tariff Details - The previous reciprocal tariff on goods from Taiwan was 20%, imposed by the Trump administration [4] - A zero percent reciprocal tariff will be applied to generic pharmaceuticals, aircraft components, and unavailable natural resources [2] Implementation Timeline - No specific timeline has been provided for when the new tariff rates will take effect or when the agreement will be finalized [3] Semiconductor Industry Provisions - Taiwan companies building semiconductor production plants in the U.S. can avoid Section 232 duties on imports up to 2.5 times a site's planned capacity during construction [5] - Companies completing new U.S. chip production projects can import 1.5 times the new production capacity without incurring Section 232 duties [6] Investment Commitments - Taiwan has committed to making $250 billion in direct investments in advanced semiconductor, energy, and artificial intelligence production in the U.S. [7] - Additionally, Taiwan will provide at least $250 billion in credit guarantees to support further U.S. semiconductor supply chain investments [7]

Core Viewpoint - The semiconductor materials and equipment theme index on the STAR Market has shown strong performance, with significant increases in both individual stocks and the related ETF, indicating a positive trend in the semiconductor sector [1]. Performance Summary - As of November 26, 2025, the STAR Market semiconductor ETF has increased by 10.58% over the past three months, with a recent price of 1.37 yuan [1]. - The ETF has experienced a 1.86% rise on November 27, 2025, with notable gains in constituent stocks such as Zhongke Feimeng (5.31%) and Huahai Chengke (2.95%) [1]. - The ETF's trading volume reached 84.42 million yuan, with a turnover rate of 2.57% [1]. Fund Size and Share Growth - The STAR Market semiconductor ETF has seen a significant growth in size, increasing by 2.771 billion yuan over the past three months, ranking in the top third among comparable funds [1]. - In the past week, the ETF's shares increased by 22 million, also placing it in the top third among similar funds [1]. Capital Flow - The latest net outflow for the ETF was 51.1942 million yuan, but over the past five trading days, there were three days of net inflow totaling 117 million yuan, averaging 23.3791 million yuan per day [1]. - Leveraged funds are actively participating, with the latest margin buying amounting to 13.9791 million yuan and a margin balance of 40.6775 million yuan [1]. Historical Performance - The ETF has achieved a net value increase of 40.30% over the past six months, ranking 593 out of 3914 in the index stock fund category, placing it in the top 15.15% [1]. - Since its inception, the ETF has recorded a maximum monthly return of 23.48% and a longest consecutive monthly gain of 58.76% [1]. Tracking Accuracy - As of November 26, 2025, the tracking error of the STAR Market semiconductor ETF over the past three months is 0.006%, indicating a close alignment with the underlying index [4]. - The index comprises companies involved in semiconductor materials and equipment, reflecting the overall performance of this sector on the STAR Market [4]. Top Holdings - The top ten weighted stocks in the index account for 73.8% of the total, with companies like Zhongwei Company (10.82%) and Huahai Qingke (10.26%) leading the list [4][5].

Core Viewpoint - The development of the semiconductor industry is heavily reliant on investment, with China's semiconductor investment reaching over 340 billion RMB through major funds, which could potentially leverage an additional 1 trillion RMB in social capital, but this is still insufficient to cover previous investment losses [1] Investment Landscape - China's semiconductor investment has seen significant growth since 2015, yet it still falls short of expectations [1] - The total investment from the first and second phases of major funds amounts to over 340 billion RMB, which translates to approximately 100 to 150 billion USD [1] Innovation and Competitiveness - Chinese enterprises face serious shortcomings in innovation capabilities, resulting in low average profit margins and weak product competitiveness [1] - The industry has largely followed and adapted to international divisions of labor rather than leading in innovation [1] Globalization and Self-Reliance - With the current stagnation or reversal of globalization, there is a need for China to pursue self-reliance while continuing to engage in global cooperation [1]

Group 1 - Chengdu Huamei Electronics Technology Co., Ltd. experienced a decline of 5.07% on November 3, with a stock price of 41.76 yuan per share, a trading volume of 147 million yuan, a turnover rate of 1.59%, and a total market capitalization of 26.595 billion yuan [1] - The company, established on March 9, 2000, focuses on integrated circuit research, design, testing, and sales, providing overall solutions for signal processing and control systems [1] - The revenue composition of the company includes: digital integrated circuits 50.03%, analog integrated circuits 43.20%, other products 3.98%, technical services 2.70%, and others 0.08% [1] Group 2 - Guolian An Semiconductor ETF (512480) entered the top ten circulating shareholders of Chengdu Huamei, holding 1.305 million shares, which is 0.6% of the circulating shares, with an estimated floating loss of approximately 2.9101 million yuan [2] - The Guolian An Semiconductor ETF was established on May 8, 2019, with a latest scale of 23.032 billion yuan, achieving a year-to-date return of 45.27% and a one-year return of 48.54% [2] Group 3 - The fund managers of Guolian An Semiconductor ETF are Huang Xin and Zhang Zhenyuan, with Huang having a tenure of 15 years and 206 days and a best fund return of 192.96% during his tenure [3] - Zhang Zhenyuan has a tenure of 11 years and 337 days, with a best fund return of 387.76% during his tenure [3]

Group 1 - The company, Shengyuan Environmental Protection, announced on October 20 that it has indirectly participated in investments in Moer Thread, Muxi Integration, and Jiaozuo Qianhai Ark Semiconductor Investment Fund by subscribing to shares of the Zhongyuan Qianhai Equity Investment Fund (Limited Partnership) for 300 million RMB [1]

Core Viewpoint - Yandong Microelectronics has experienced a decline in stock price, with a cumulative drop of 13.19% over the past three days, indicating potential concerns among investors regarding the company's performance and market conditions [1]. Group 1: Company Overview - Yandong Microelectronics, established on October 6, 1987, is located in Beijing Economic and Technological Development Zone and was listed on December 16, 2022 [1]. - The company's main business includes the design, production, and sales of discrete devices, analog integrated circuits, special integrated circuits, and semiconductor open wafer manufacturing and packaging testing services [1]. - The revenue composition of Yandong Microelectronics is as follows: products and solutions account for 47.18%, manufacturing and services for 43.91%, other for 5.79%, and additional (supplementary) for 3.13% [1]. Group 2: Shareholder Information - Among the top ten circulating shareholders of Yandong Microelectronics, a fund under Harvest Fund ranks first, specifically the Harvest SSE STAR Market Chip ETF (588200), which increased its holdings by 542,500 shares to a total of 5,699,900 shares, representing 0.97% of circulating shares [2]. - The fund has incurred a floating loss of approximately 7.64 million yuan today, with a total floating loss of 23.08 million yuan during the three-day decline [2]. - The Harvest SSE STAR Market Chip ETF was established on September 30, 2022, with a current scale of 27.806 billion yuan, achieving a year-to-date return of 64.09% and a one-year return of 98.1% [2]. Group 3: Fund Manager Information - The fund manager of the Harvest SSE STAR Market Chip ETF is Tian Guangyuan, who has been in the position for 4 years and 224 days [3]. - Under Tian Guangyuan's management, the fund's total asset scale is 44.323 billion yuan, with the best return during his tenure being 143.25% and the worst return being -46.65% [3].

Summary of the Conference Call on Greater China Technology Semiconductors Industry Overview - The focus is on the Greater China Technology Semiconductors industry, particularly influenced by stronger iPhone sales and their implications for semiconductor stocks in the region [1][2]. Key Insights - **iPhone Sales Estimates**: Apple analyst Erik Woodring has increased iPhone sales estimates for 2026 by 4%, attributing 3% of this increase to unit sales and 1% to average selling price (ASP) [1]. - **Sales Growth in China**: Recent supply-chain checks indicate that iPhone sales in China have shown an 8.7% year-over-year growth in unit sales over the past few weeks, driven by strong sales momentum during the October holidays [2]. Impact on Semiconductor Stocks - The strong performance of iPhone sales is expected to positively affect several semiconductor stocks in Greater China: - **TSMC**: Overweight rating, with an estimated revenue exposure to iPhone of 10-20% [2]. - **Novatek**: Overweight rating, with an estimated revenue exposure of 5-10% [2]. - **UMC**: Equal-weight rating, with less than 10% revenue exposure [2]. - **Win Semi**: Underweight rating, with a significant revenue exposure of 40-45% [2]. - **USI**: Equal-weight rating, with a revenue exposure of 30-40% [2]. Valuation Methodology and Risks - **UMC**: Utilizes a base-case residual income model with key assumptions including a 9.2% cost of equity and a 6.0% medium-term growth rate [7]. - **TSMC**: Also employs a residual income model, with a cost of equity of 9.2% and an intermediate growth rate of 10.5% [8]. - **Novatek**: Assumes a cost of equity of 9.8% with a medium-term growth rate of 8.1% [9]. Risks Identified - **Upside Risks**: - Stronger-than-expected global economic and semiconductor growth [11]. - Favorable customer mix changes [11]. - **Downside Risks**: - Increased pricing competition leading to reduced margins [11]. - Weaker demand for leading-edge technologies [12]. Analyst Ratings - The report includes a list of companies with their respective ratings as of October 13, 2025, indicating a mix of Overweight, Equal-weight, and Underweight ratings across various semiconductor firms [76]. Conclusion - The Greater China Technology Semiconductors industry is currently viewed as attractive, with strong iPhone sales driving positive sentiment towards key semiconductor stocks. Analysts are closely monitoring the potential risks and growth opportunities within this sector [4].

Core Viewpoint - Company holds a 2.69% stake in the CCTV Integrated Media Industry Investment Fund, indicating a strategic investment in the media sector [1] Investment Details - The CCTV Integrated Media Fund invested in Mu Xi Integrated Circuit (Shanghai) Co., Ltd. in June 2022 and in Yangtze Memory Technologies Co., Ltd. in December 2023 [1] - Company does not participate in the daily management of the fund, minimizing operational risk [1] Impact on Company Performance - The company's indirect investment in the associated companies is relatively low, suggesting that it will not significantly impact the company's operational performance [1]

Core Insights - The establishment of Changcun Phase III (Wuhan) Integrated Circuit Co., Ltd. with a registered capital of 20.72 billion yuan marks a significant development in the semiconductor industry, backed by substantial state-owned capital from Hubei [2][3] - 2024 is anticipated to be a pivotal year for state-owned semiconductor funds, with multiple funds established in 2023 beginning to engage in practical investments [3][4] - The National Fund Phase III, with a scale of 344 billion yuan, is a key player in the semiconductor industry, and its first potential investment project has emerged involving Tuojing Technology [5][6] Group 1: National and Local Semiconductor Funds - The National Fund Phase III has registered three subsidiary funds with significant capital, indicating a strong commitment to the semiconductor sector [5] - Local funds in regions like Shanghai and Jiangsu are actively establishing sub-funds and making direct investments, reflecting a trend towards practical engagement in the semiconductor industry [6][7] - The establishment of the Wuxi Integrated Circuit Industry Special Fund and the Zhejiang Integrated Circuit Industry Fund highlights the regional focus on semiconductor investments [8][9] Group 2: Investment Trends and Strategies - New funds in cities like Hangzhou and Shenzhen are emerging, focusing on specific segments of the semiconductor industry, indicating a shift towards targeted investments rather than broad-based funding [9][10] - The investment landscape is characterized by a concentration of resources in regions with established industrial chains and leading enterprises, which is essential for successful semiconductor projects [11] - The high capital requirements and long investment cycles in the semiconductor industry are leading to a more cautious approach to fund establishment, with a focus on project readiness [10][11]