Investment Rating - The industry rating is "Leading," indicating that the covered industry is expected to perform better than the benchmark index over the next 12 months [3]. Core Insights - The MSCI Information Technology Index increased by 4.2% from July 12 to August 11, outperforming the MSCI Global Index, which rose by 1.7% [1]. - TSMC reported a revenue of NT$323.2 billion in July, a year-on-year increase of 26%, indicating strong demand for advanced processes [3]. - The semiconductor equipment import value in June grew by 19% year-on-year, reflecting sustained high levels of investment in domestic semiconductor manufacturing [3]. - The U.S. semiconductor tariff policy announced on August 6 is expected to have a smaller impact than previously anticipated, particularly for companies like TSMC that are investing heavily in U.S. manufacturing [3]. Summary by Sections Industry Performance - The MSCI Global Index and the CSI 300 Index have recorded three consecutive months of growth, although the rate of increase has slowed [1]. - The Hang Seng Technology Index rebounded with a 4.0% increase this month, outperforming the Hang Seng Index, which rose by 3.2% [1]. Company-Specific Insights - TSMC's revenue growth is attributed to strong demand for its 2nm technology, with expectations for continued growth in AI-related revenues [3]. - The average spot price for DDR5 (16GB) has stabilized since July, while contract prices for DDR4 (8GB) and NAND Flash (128GB) continue to rise [3]. Market Trends - The report anticipates that storage prices will remain strong in the second half of 2025, supported by ongoing demand [3]. - The report suggests that the tariff policy may accelerate domestic substitution and lead to some redundancy in the global semiconductor supply chain, benefiting upstream equipment suppliers [3].

Industry Investment Rating - The report assigns a "Leading" investment rating to the technology industry, indicating a positive outlook for the sector over the next 12 months [1]. Core Insights - The technology sector has shown significant stock price recovery, driven by strong demand for advanced processes and memory chips [1]. - Trade uncertainties have eased, contributing to a rebound in global stock markets, with the MSCI Information Technology Index rising by 9.6% from May 10 to June 9, outperforming the MSCI Global Index, which increased by 5.5% [3]. - TSMC reported a 40% year-on-year revenue increase in May, indicating sustained demand for AI chips, while storage prices for DRAM and NAND Flash have continued to rise, suggesting ongoing cost pressures in the smartphone and consumer electronics sectors [3][4]. Summary by Sections Industry Performance - The MSCI Information Technology Index outperformed other sectors, with a notable increase of 9.6% compared to the MSCI Global Index's 5.5% [3]. - TSMC's revenue for May reached 320.5 billion New Taiwan Dollars, reflecting a 40% year-on-year growth, despite an 8% decline from the previous month [3][33]. Market Trends - Memory chip prices have seen significant increases, with DDR4 prices rising by 22.2% from March to April, and NAND Flash prices increasing by 34% compared to the end of last year [3][34]. - The report anticipates that storage prices will continue to rise due to supply-side adjustments and increased demand from downstream customers [3]. Investment Recommendations - Investors are encouraged to focus on areas with high certainty, particularly in AI and domestic semiconductor sectors, as well as potential improvements in automotive and industrial demand [3]. - The report highlights specific companies with buy ratings, including Nvidia, AMD, and TSMC, indicating strong potential for growth in the semiconductor design and foundry sectors [37].