Group 1 - The core viewpoint of the news highlights the advancements in the glass substrate sector, particularly by Hon Hai Group's subsidiary, Zhengda, which has achieved breakthroughs in CoWoS advanced packaging glass substrates and is expected to begin product deliveries in the coming years [1][2] - The SW electronic industry index increased by 2.78% during the week of September 29 to October 3, 2025, outperforming the CSI 300 index, which rose by 1.99% [2] - The top three sectors within the electronic industry index were integrated circuit manufacturing (+6.93%), integrated circuit packaging and testing (+4.50%), and digital chip design (+4.14%) [2] Group 2 - The global glass substrate market is projected to grow from $7.01 billion in 2024 to $12.33 billion by 2032, with a compound annual growth rate (CAGR) of 7.3% [4] - In China, the glass substrate market is expected to increase from 25.2 billion yuan to 36.1 billion yuan from 2020 to 2024, with a CAGR of 9.4% [4] - The market is highly concentrated, with the top three companies (Corning, Asahi Glass, and Nippon Electric Glass) holding a combined market share of 88% in 2023 [4] Group 3 - The demand for glass substrates is expected to rise due to increasing energy costs and production cuts by international giants like Corning and AGC, which will limit supply [5] - Woge Optoelectronics, a key Chinese glass substrate manufacturer, has seen its revenue grow from 604 million yuan in 2020 to 2.221 billion yuan in 2024, achieving a CAGR of 38.48% [5] - The company maintains a stable gross margin of around 20% from 2020 to the first half of 2025, driven by its focus on R&D and market-oriented business expansion [5]

Investment Rating - The report recommends a "First-time Buy" rating for the industry [5] Core Viewpoints - The domestic glass substrate industry is experiencing a significant shift towards localization, with major breakthroughs in high-generation glass substrate technology by domestic companies [8] - The global market for FPD glass substrates is expected to reach approximately 50 billion RMB by 2025, driven by price increases and rising demand [3][44] - The competitive landscape is dominated by three major foreign companies, which hold about 80% of the market share, but domestic manufacturers are rapidly increasing their market presence [4][51] Summary by Sections 1. Display Glass Substrate Overview - Display glass substrates are a core component of display panels, accounting for approximately 15.2% of the cost of TFT-LCD panels [2][27] - The demand for glass substrates is primarily driven by the LCD panel industry, with about 80% of glass substrates used for LCD panels [2][27] 2. Development of Display Glass Substrates - Major glass substrate manufacturers, including Corning, AGC, and NEG, have raised prices by over 10% in response to rising energy costs [3][43] - The global market for FPD glass substrates is projected to grow by 15%, from 6.12 billion USD in 2024 to 7.05 billion USD in 2025, equivalent to about 50 billion RMB [3][44] 3. Competitive Landscape - The top three companies (Corning, AGC, and NEG) control approximately 80% of the FPD glass substrate market, with Corning leading at over 50% market share [4][51] - Domestic manufacturers have made significant progress in high-generation glass substrate technology, with companies like Rainbow Technology achieving notable production milestones [8][19] 4. Investment Recommendations - Given the clear trend towards domestic production of high-generation glass substrates, companies like Rainbow Technology are recommended for investment due to their technological and market potential [8][9]