Core Viewpoint - Nintendo has turned to Samsung Electronics to assist in manufacturing the main chip for the Switch 2, aiming to boost production to exceed the expected 20 million units by March 2026 [1][2]. Group 1: Nintendo's Production and Sales Expectations - Nintendo anticipates selling 15 million units of the Switch 2 in the current fiscal year, factoring in the impact of tariffs on profits, but this figure does not account for supply constraints [2][3]. - The company has received 2.2 million pre-orders in Japan alone and has apologized for being unable to accept more pre-orders due to high demand [3]. - Nintendo's initial goal is to match the sales of the original Switch in its first 10 months, which was approximately 15 million units, indicating potential for upward revision of shipment estimates [3]. Group 2: Samsung's Role and Competitive Landscape - Samsung is utilizing its 8nm process node to manufacture custom chips designed by NVIDIA for the Switch 2, which is expected to enhance Samsung's foundry capacity utilization and business performance [1]. - This collaboration marks a significant endorsement for Samsung's foundry business, which has struggled to compete with TSMC in the semiconductor market [1][2]. - Historically, Samsung has been a key supplier for Nintendo, providing NAND flash memory and OLED screens, and has encouraged Nintendo to continue using OLED panels in future Switch 2 models [2]. Group 3: TSMC's Market Position - TSMC has been expanding its lead in the semiconductor market through continuous technological iterations and stable mass production capabilities, attracting major clients like Apple and NVIDIA [2]. - The competition between Samsung and TSMC in advanced process technology is intensifying, with both companies striving to improve the yield of 2nm processes to enhance profitability and product quality [2].

Group 1 - The core point of the news is that ASE Technology Holding Co., Ltd. (日月光投控) plans to acquire shares of Yuanlong Electronics (元隆电子) at NT$9 per share, with a total acquisition amount reaching NT$136 million, representing a premium of approximately 3.09% based on the closing price of NT$8.73 [1][2] - The acquisition period is set from May 15 to June 24, with the aim of restructuring Yuanlong's operations and promoting business transformation, while also protecting shareholder interests [2] - Following the acquisition, ASE Technology is expected to hold 68.18% of Yuanlong's shares, which may lead Yuanlong towards privatization to better prepare for future opportunities in the AI sector [2][3] Group 2 - Yuanlong's first-quarter financial report shows a consolidated revenue of NT$268 million, a quarter-on-quarter increase of 14.2% and a year-on-year increase of 24.6%, but it still reported a net loss of NT$128 million, marking the highest quarterly loss in nearly four years [2] - The company has faced continuous losses for nine consecutive quarters, with a net loss per share of NT$1.06 and a negative net asset value of NT$-0.42 per share as of the end of the first quarter [2] - The 6-inch power semiconductor wafer foundry market is under pressure due to intense competition from Chinese manufacturers, leading to high operational costs for Yuanlong and poor profitability [3]

Investment Rating - The report provides an "In-Line" investment rating for the Chinese industrial sector, indicating a balanced outlook on investment opportunities within the industry [10]. Core Insights - The report emphasizes the importance of investing in emerging industries in China that possess structural competitive advantages, particularly in the context of challenges such as debt, deflation, demographic changes, and global multipolarity [3][8]. - It identifies significant opportunities in advanced supply chains and manufacturing, highlighting the potential for growth in sectors such as machinery, automotive, new energy, semiconductors, aerospace, artificial intelligence, software, pharmaceuticals, humanoid robotics, and eVTOL [4][30]. - The report outlines a framework consisting of six key elements that support industry upgrades, which include R&D investment, talent development, capital influx, government policy support, market demand, and supply chain robustness [31][34]. Summary by Sections Industry Investment Rating - The report rates the Chinese industrial sector as "In-Line," suggesting a cautious but optimistic view on investment prospects [10]. Key Industry Opportunities - The report identifies 28 stocks that are well-positioned to benefit from the ongoing industrial upgrades and emerging trends in China, focusing on companies that are either upstream in the supply chain or are key enablers in sectors like automation and AI [4][42]. Six Key Elements Framework 1. **R&D Investment**: China’s R&D expenditure is primarily concentrated in manufacturing, with a notable increase in investment in technology and emerging industries [15][31]. 2. **Talent Pool**: China produces the largest number of engineering graduates globally, with a focus on strategic emerging fields such as AI and data science [31][32]. 3. **Capital Influx**: Significant capital has flowed into advanced manufacturing sectors, particularly semiconductors and machinery, with a total of approximately RMB 20 trillion from 2021 to 2024 [32][33]. 4. **Government Support**: The Chinese government has implemented various strategic initiatives to support key industries, including AI, semiconductors, and aerospace, enhancing the investment landscape [33][34]. 5. **Market Demand**: The report highlights a positive feedback loop between rising demand and innovation, particularly in consumer electronics, automotive, and electrical machinery [34]. 6. **Supply Chain Development**: The report discusses the importance of moving up the value chain, particularly in sectors with low localization rates and strong downstream demand [34][35]. Emerging Industry Focus - The report underscores the potential of artificial intelligence to drive significant economic value in China, projecting that AI could contribute RMB 11 trillion to the labor value by 2035, representing 5.5% of nominal GDP [37][38]. - It also notes the expected growth in sectors such as autonomous vehicles and industrial AI applications, which are anticipated to enhance productivity and operational efficiency across various industries [39].

英特尔(INTC.O)CFO：代工部门将在今年下半年通过先进制造业务实现收入。 ...

Group 1: Financial Performance and Projections - TSMC's revenue for 2025 is projected to be NT$3.76 trillion, representing a year-on-year growth of 29.8%[11] - The estimated diluted EPS for 2025 is NT$60.8, with projections of NT$69.6 and NT$78.2 for 2026 and 2027 respectively[28] - Gross margin is expected to be 58.1% in 2025, slightly decreasing to 56.8% by 2027[27] Group 2: Market Position and Competitive Advantage - TSMC is positioned to benefit from the rising demand for advanced process nodes, particularly in AI and high-performance computing (HPC) sectors[8] - The company is expected to maintain a leading position in advanced process technology, with 2nm technology contributing 5% and 12% of revenue in 2025 and 2026 respectively[12] - TSMC's market capitalization is approximately $1.73 trillion, with a 52-week high of $224.62 and a low of $141.37[7] Group 3: Investment and Capital Expenditure - TSMC plans to invest between $38 billion and $42 billion in capital expenditures for 2025, with a capital expenditure intensity of around 34%[14] - The company is expanding its manufacturing capacity in the U.S., with an additional investment of $100 billion for new fabs and R&D centers[16] - The capital expenditure for 2026 is projected to be $45.5 billion, indicating a continued commitment to growth[14] Group 4: Valuation and Stock Performance - TSMC's ADR target price is set at $225, based on a 24x P/E ratio for the projected EPS of NT$60.8 in 2025[55] - The current trading P/E ratio is approximately 18x, aligning with the historical average since 2015[55] - The stock is expected to experience a potential upside of 27.5% from the current price to the target price[4]

Core Viewpoint - SMIC reported a significant year-on-year increase in net profit for Q1 2025, but revenue growth fell short of expectations due to price declines and production fluctuations [2][4][6]. Financial Performance - Q1 2025 revenue reached 16.301 billion yuan, a year-on-year increase of 29.4% and a quarter-on-quarter increase of 2.41% [2]. - Net profit attributable to shareholders was 1.356 billion yuan, showing a year-on-year increase of 166.5% and a quarter-on-quarter increase of 36.67% [2]. - The company expects Q2 revenue to decline by 4% to 6%, with a gross margin forecasted between 18% and 20% [2][6]. Revenue Breakdown - In Q1 2025, wafer revenue accounted for 95.2% of total revenue, with a quarter-on-quarter growth of 5% [4]. - The company shipped 2.29 million wafers, reflecting a 15% quarter-on-quarter increase [4]. - Revenue from the automotive sector grew over 20% quarter-on-quarter, increasing its share from 8% to 10% [4]. Market Outlook - The CEO expressed optimism about recovery signals in various sectors, including industrial and automotive, despite challenges [2][8]. - The company noted that the impact of the U.S. "reciprocal tariffs" on the semiconductor industry is minimal, with less than a 1% direct effect [7]. - There are concerns about potential downward adjustments in customer inventory and orders, particularly in the smartphone and PC markets [7][8]. Strategic Initiatives - SMIC is focusing on cost reduction and efficiency improvements to counteract price volatility [2][6]. - The company is committed to maintaining production capacity and responding to customer demands amid a recovering market [5][6].

金十数据5月9日讯，中芯国际联合CEO赵海军表示，此前市场预计智能手机、电脑都会有很大成长，但 今年5月份公司看到，手机的总出货量预计将得到修正，Q3可能出现客户备货目标的向下调整；PC产品 销售平稳但缺乏大幅成长，下游备货情况已经差不多（完成）；电视、平板电脑在内的面板整体供过于 求。以上因素导致对代工行业形成价格下行压力。中芯国际将支持客户直面市场价格竞争，但不会以主 动降价争取更大市场份额。 中芯国际：手机客户Q3或下调备货目标 代工行业面临价格下行压力 ...

《科创板日报》9日讯，中芯国际联合CEO赵海军表示，新的市场因素出现后，二季度基本面相比一季 度没有发生太大变化，客户都在沉着应对，公司产能利用率继续保持饱满状态。公司已经看到各行业， 包括工业与汽车领域触底反弹的积极信号，产业链在地化转换也继续走强，更多晶圆代工需求回流本 土。关税政策出台后，中芯国际进行内部测算，并与供应商、国内外客户做了深入交流，政府也与工业 界密切沟通，结论是实际对行业的直接影响非常小，"影响小过一个百分点"。半导体代工行业，在采购 层面可以吸收掉关税影响。（记者 郭辉） 中芯国际赵海军：看到更多需求回流本土 可在采购层面吸收掉关税影响 ...

三星电子：代工利润恶化，预计下半年亏损会收窄。 ...

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved a revenue of 2.568 billion RMB in Q1 2025, representing a year-on-year growth of 15.25%, and a net profit attributable to the parent company of 135 million RMB, up 70.92% year-on-year [1][2] - The increase in net profit is primarily driven by revenue growth and high capacity utilization, along with a decrease in unit sales costs, leading to improved gross margins [1] - The semiconductor market is expected to continue its recovery, with the company benefiting from stable demand in LCD/TDDI and rapid revenue contributions from new platforms [2][3] Summary by Sections Q1 2025 Review - The global semiconductor market is recovering, with a projected sales increase of 20.3% year-on-year to 632.3 billion USD in 2024, positively impacting the company's revenue growth [2] - The company has successfully ramped up production of new platforms, including 55nm mid-to-high-end single-chip and stacked CIS chip processes, and has achieved mass production of 40nm high-voltage OLED chips [2] 2025 Outlook - The company is well-positioned to capitalize on growth opportunities in OLED, CIS, and automotive markets, with OLED demand expected to reach 860 million units in 2025, and a projected CAGR of 5.1% for the global CIS market from 2022 to 2028 [3] - The company is actively enhancing its OLED and CIS platform applications and has completed multiple automotive process certifications [3] Financial Projections and Valuation - The target price is set at 27.10 RMB, with projected net profits for 2025, 2026, and 2027 at 870 million, 1.12 billion, and 1.31 billion RMB respectively, corresponding to EPS of 0.44, 0.56, and 0.65 RMB [4] - The report assigns a PB of 2.50x for 2025, reflecting a discount to the industry average of 3.0x due to pricing pressures and high depreciation during the capacity expansion phase [4]