Investment Rating - The industry investment rating is "Outperform" [11] Core Viewpoints - The modification of the origin recognition method for integrated circuits to the "wafer fab location" rule by the General Administration of Customs may provide domestic manufacturers with opportunities for import substitution [1] - The change is expected to significantly impact semiconductor companies with fabs in the U.S. [1] - Domestic integrated circuit manufacturers are likely to benefit from price increases in CPU, memory, and analog products due to the new customs policy [1] Summary by Sections Investment Recommendations - Recommended companies to focus on include: SMIC, Hua Hong Semiconductor, Haiguang Information, Loongson Technology, Cambricon, Shengke Communication, Anlu Technology, Fudan Microelectronics, Unisoc, Sanan Optoelectronics, Sierpu, Naxin Micro, Chipsea Technologies, Longsys, Silan Microelectronics, Zhaoxin, Weijie Chuangxin, and Huizhi Micro [3] Supporting Points for Rating - The modification of the origin recognition method is expected to lead to price increases for various semiconductor products, benefiting domestic manufacturers [2] - In 2024, China's integrated circuit imports are projected to be approximately $385.6 billion, with significant contributions from Taiwan, South Korea, and other regions [1] - The U.S. semiconductor companies, despite having a smaller direct export amount to China, have extensive wafer fabs and packaging facilities in East Asia and Southeast Asia, which may indirectly affect their exports to China [1]