Investment Rating - The industry rating is "Outperform the Market" [7][14] Core Insights - SK Hynix plans to launch HBF1 samples as early as this year, collaborating with SanDisk to establish HBF standards, with the product expected to utilize 16-layer NAND flash stacking [2] - TSMC's capital expenditure plan for 2026 is projected to reach a maximum of $56 billion, a significant increase of 37% from the actual expenditure of $40.9 billion in 2025, driven by strong AI demand and global advanced process capacity expansion [3] - The global average utilization rate for 8-inch wafers is expected to rise to 85-90% in 2026, up from 75-80% in 2025, with some foundries planning to increase foundry prices by 5-20% due to tightening capacity [4] Recommendations - Focus on Taiwanese semiconductor industry chain companies such as Shenghui Integrated, Yaxiang Integrated, and Hanzhong Precision [5] - Pay attention to domestic companies with significant potential in the measurement segment, including Jingce Electronics, Zhongke Feimeasure, and Saiteng Co., Ltd. [5] - Consider companies involved in clean rooms and medium systems, such as Zhengfan Technology, Shengjian Technology, and Meier Technology [5] - Look into testing probe companies like Helin Weina and Qiangyi Co., Ltd. [5] - Key process equipment firms include Northern Huachuang, Zhongwei Company, and Tuo Jing Technology [5] - Advanced packaging companies such as Quick Intelligent and Chip Micro-Assembly are also recommended [5] - Third-party testing firms like Su Shi Testing and Shengke Nano are worth monitoring [5]

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board semiconductor materials and equipment theme index (950125) decreased by 0.80% as of January 19, 2026, with mixed performance among constituent stocks [1] - The semiconductor equipment ETF Huaxia (562590) fell by 0.77%, with a latest price of 2.05 yuan and a trading volume of 2.06 billion yuan [1] - The semiconductor materials and equipment sector is seen as a key area for domestic substitution, benefiting from low domestic replacement rates and high ceilings for domestic alternatives, driven by the AI revolution and technological advancements [3] Group 2 - SK Hynix is collaborating with SanDisk to establish the HBF standard, with plans to launch HBF1 samples as early as this year, utilizing 16-layer NAND flash memory stacking [2] - The HBF technology is expected to be applied in products from Nvidia, AMD, and Google by late 2027 or early 2028, with predictions that the HBF market will surpass the HBM market by around 2038 [2] - Huafu Securities anticipates that the performance release in the storage sector will occur in three stages, benefiting from price increases in module manufacturers and subsequent orders for equipment manufacturers [2]