Investment Rating - The report maintains a positive outlook on the semiconductor industry, particularly in the AI and storage sectors, indicating a favorable investment environment [4][7]. Core Insights - The semiconductor industry is experiencing robust growth driven by AI demand, with TSMC's revenue in September 2025 reaching NT$3,309.8 billion, a year-on-year increase of 31% [7]. - AI chip demand is expected to double in 2025 compared to 2024, with significant contributions from major clients like NVIDIA and AMD [7]. - The DRAM market is showing strong recovery, with Nanya Technology reporting a 158% year-on-year revenue increase in September 2025 [18]. Summary by Sections AI Sector - TSMC's advanced process technology continues to lead, with 74% of wafer sales coming from processes of 7nm and below [7]. - Server management chip company, Xinxia, reported a revenue increase of 15% year-on-year, reflecting strong demand from traditional and AI server markets [8]. Testing and Packaging - Jingyuan Electronics achieved a 40% year-on-year revenue growth in September 2025, benefiting from collaborations with AMD and OpenAI [9]. - The testing equipment supplier, Zhizhong, reported a revenue increase of 27% year-on-year, driven by demand for semiconductor testing solutions [9]. Storage Sector - Nanya Technology's revenue surged by 158% year-on-year, with DRAM prices expected to continue rising [18]. - Winbond Electronics reported a 10% revenue increase, marking a 39-month high, while Macronix also saw a 9% increase in revenue [18]. Passive Components - Yageo Corporation's revenue grew by 12% year-on-year, driven by strong AI application demand [19]. EMS Sector - Foxconn's revenue reached NT$8,370.7 billion, a 14% year-on-year increase, supported by strong AI demand across its business segments [15]. - Quanta's revenue increased by 19% year-on-year, with expectations for continued growth in AI server shipments [16].