Core Insights - The domestic semiconductor industry in China is experiencing significant breakthroughs in lithography machine localization, highlighted by the recent China International Industrial Expo where key products were showcased [1][3] - The domestic lithography machine industry is entering a year of explosive growth, with advancements in production capabilities and technology [3][4] Industry Developments - Shanghai Micro Electronics and Chip-on-Micro showcased major products, indicating a "0-1" breakthrough in the industry, with advanced packaging machines entering mass production and domestic EUV machines in the principle machine construction phase [3] - The domestic lithography machine has made significant progress in the 90nm and below process nodes, with Shanghai Micro Electronics achieving mass production of its 600 series lithography machine [3][4] - Collaborations, such as between Yuliangsheng and SMIC, signal important advancements in domestic lithography machine testing [3] Market Performance - The stock of Zhangjiang Hi-Tech (600895) hit a historical high, reflecting positive market sentiment towards lithography machine concepts [4] - The A-share market has over 40 stocks related to lithography machines, with institutions showing strong interest in companies like Chip-on-Micro, Jiangfeng Electronics, and others [6][7] Financial Projections - Analysts predict significant net profit growth for several companies in the lithography machine sector, with expectations of over 30% growth for firms like Fuchuang Precision and Tongfei Shares in 2026 and 2027 [6] - Companies such as Chip-on-Micro and Jiangfeng Electronics are also expected to see net profit growth exceeding 20% in the same period [6] Investment Trends - Leveraged funds have shown strong interest in stocks like Tengjing Technology and Chip-on-Micro, with net purchases exceeding 100 million yuan since September [7][8] - The demand for domestic lithography machines remains high, but the localization rate is still low, indicating potential for future growth [5]