Core Viewpoint - The current A-share market is driven by five main factors: robust economic recovery, proactive "anti-involution" policies, significant technological advancements, the introduction of new regulatory frameworks, and favorable global liquidity conditions [1] Group 1: Market Drivers - The Chinese economy is showing strong resilience, providing solid support for the stock market [1] - The central government's "anti-involution" policies are improving the economic supply-demand structure and boosting corporate profitability [1] - Major technological breakthroughs in China are leading to asset revaluation [1] - The release of the new "National Nine Articles" establishes a solid institutional foundation for the high-quality development of the capital market [1] - The decline of the overseas dollar cycle is creating a marginally loose global liquidity environment, benefiting emerging markets, particularly A-shares and Hong Kong stocks [1] Group 2: Market Trends - The capital market is currently vibrant, with the Shanghai Composite Index breaking a ten-year high [1] - A-share market is expected to continue a slow bull trend, supported by both fundamental and valuation recovery [1] - The Chinese economy is transitioning to a high-quality development phase, with new growth drivers gradually replacing old ones [1] - The quality of listed companies in China is improving, with the technology sector now accounting for over 25% of the market capitalization [1] Group 3: Policy and Reform - The "1+6" reform of the Sci-Tech Innovation Board and the "merger and acquisition six articles" are restructuring the capital market ecosystem [2] - The introduction of the fifth set of listing standards expands opportunities for companies in commercial aerospace and AI sectors [2] - The Sci-Tech Innovation Board is creating a dedicated channel for unprofitable companies to go public, enhancing the financing ecosystem [2] - The "merger and acquisition six articles" are accelerating the concentration of quality assets in listed companies, potentially leading to the emergence of billion or even trillion-level industry leaders [2] Group 4: Investment Opportunities - Investment opportunities are suggested in three main areas: the photovoltaic industry chain, traditional industries facing overcapacity, and emerging non-manufacturing sectors like e-commerce [3]

Core Viewpoint - The ongoing US-China tariff war is creating uncertainty in the global economy, leading to concerns among clients and impacting demand forecasts for the semiconductor industry. The situation requires careful observation before making predictions about the economic outlook for the year [1][2]. Group 1: Tariff Impact and Economic Outlook - The chairman of a leading semiconductor foundry noted that the tariff situation is still evolving, making it difficult to predict the global economic landscape. The potential for demand decline could have severe repercussions for the global economy if the US-China tensions are not resolved peacefully [1]. - The imposition of tariffs by the US, while initially excluding semiconductor chips, has created a climate of uncertainty that complicates industry forecasts. Companies are responding differently, with some increasing shipments to the US while others are concerned about inventory accumulation [1][2]. Group 2: Company Strategy and Investments - The company has no plans to establish manufacturing facilities in the US, focusing instead on its ongoing investment in a 12-inch wafer fab in Singapore, with an investment of nearly 200 billion TWD. The company remains committed to its existing investment plans despite the tariff situation [4]. - The company is on track with its joint venture in Singapore, with the first 12-inch fab expected to begin production in the second half of 2026 and reach mass production by 2027. The anticipated monthly capacity for the fab by 2029 is 55,000 wafers, which will create approximately 1,500 jobs and contribute to the semiconductor ecosystem [5]. Group 3: Future Projections - The company expects a moderate growth in the semiconductor market by 2025, contingent on the recovery of inventory levels. However, the ongoing tariff conflict has rendered many forecasts unreliable, making it challenging to predict future trends accurately [2]. - The company plans to allocate 60-70 billion TWD for capital expenditures in 2025, with over 90% directed towards the new Singapore 12-inch fab, ensuring a stable supply of mature process capacity [4].