Core Insights - SMIC is testing a DUV lithography machine developed by the Shanghai startup Yuliangsheng, which uses immersion technology similar to ASML's, but it is unclear when it will be ready for mass production [1] - If successful, this development could significantly reduce China's reliance on Western technology and enhance its AI chip production capacity [1] - Following this news, SMIC's stock rose nearly 7% on September 17, and related stocks in the lithography machine sector also experienced a surge [1] Company Developments - Dinglong Co. has developed nearly 30 high-end wafer photoresist products, with over 15 samples sent for customer validation, and several products expected to secure orders in the latter half of the year [1] - WaveOptics focuses on optical components and systems, with a small revenue scale in the lithography machine sector, but maintains competitive advantages through rapid R&D and cost optimization [2] - Dongfang Jiasheng is expanding its semiconductor service capabilities and has established a supply chain service for semiconductor equipment maintenance in Southern China [3] - Qiaoyuan Co. specializes in high-purity gases for various industries, including semiconductor manufacturing, and plans to focus on electronic specialty gases as a strategic direction [5] - Zhongci Electronics is advancing in the SiC power semiconductor field and aims to capture market share in high-voltage applications [5] - Tongfei Co. provides temperature control products for semiconductor manufacturing, ensuring high precision in temperature management [5] - Zhongrun Optics produces high-end optical filters used in lithography machines, with clients including ASML [5] - Chipbond Technology has a stable and deep partnership with Shenghong Technology, focusing on AI server and advanced packaging demands [7]

Core Viewpoint - Semiconductor stocks continue to rise, with notable increases in share prices for companies like SMIC and Hua Hong Semiconductor, driven by positive developments in technology and market demand [1] Group 1: Stock Performance - SMIC (00981) shares increased by 6.33%, reaching HKD 67.25 [1] - Hua Hong Semiconductor (01347) shares rose by 5.02%, reaching HKD 54.4 [1] - Hongguang Semiconductor (06908) shares grew by 3.51%, reaching HKD 0.59 [1] - Shanghai Fudan (01385) shares increased by 2.54%, reaching HKD 41.22 [1] Group 2: Technological Developments - SMIC is testing a deep ultraviolet (DUV) lithography machine manufactured by Shanghai startup Yuliangsheng, utilizing immersion technology similar to that of ASML [1] - Initial test results for the machine are encouraging, but it remains uncertain when it will be ready for mass chip production [1] Group 3: Analyst Insights - Goldman Sachs raised the target price for SMIC's H-shares by 15% to HKD 73.1, driven by optimism regarding China's IC design demand and AI trends [1] - The firm also increased revenue and earnings per share forecasts for 2028-2029, anticipating a 5%-7% quarter-on-quarter revenue growth in Q3 2025, which could act as a short-term catalyst for the stock price [1]