Driven by strategic localization and domestic AI demand Memory expansion may moderate temporarily in 1H26, but domestic breakthroughs in critical tools and the repatriation of AI demand underpin a structural shift toward local equipment. Lifting our estimate of China's WFE TAM: Our Global Semis team recently raised its 2026 WFE market growth forecast to +16% Y/Y, driven by DRAM and TSMC. Given robust capex for domestic memory and advanced-node capacity, we forecast China's WFE market to grow 4% Y/Y in 2026. ...