Core Viewpoint - TSMC has placed an order for 10 units of 5nm plasma etching machines from Zhongwei Semiconductor Equipment, marking a significant achievement for Zhongwei in the semiconductor equipment sector [1][2]. Group 1: TSMC's Operations - TSMC's Nanjing factory, established in 2016 with an investment of approximately $3 billion, is a key part of TSMC's strategy in mainland China [3]. - The Nanjing facility achieved remarkable construction efficiency, completing the factory in 14 months and producing its first wafer within 6 months [3]. - The factory primarily focuses on 12nm and 16nm process technologies and has significantly enhanced local wafer foundry capabilities [3]. Group 2: Zhongwei Semiconductor Equipment - Zhongwei Semiconductor has successfully developed a 5nm etching machine that meets TSMC's stringent requirements, showcasing its technological maturity and reliability [1][2]. - The company has a strong track record in etching equipment, having progressed from 65nm to 5nm technology through continuous innovation and R&D investment [2]. - Zhongwei's etching equipment features advanced technology, including adjustable process stability, dual low-frequency RF sources, and a proprietary anti-corrosion reaction chamber [2]. Group 3: Market Position and Financials - Zhongwei Semiconductor is a leading player in the domestic semiconductor equipment market, with over 95% coverage of domestic etching needs and a projected revenue of approximately 7.277 billion yuan in 2024 [5]. - The company has experienced an average annual growth rate of over 50% in etching equipment revenue over the past four years [5]. - Zhongwei is also expanding into new areas, including GaN-based LED lighting and SiC power devices, while actively investing in over 30 upstream and downstream enterprises [6].