Newway Photomask(SH:688401)2026-01-20 03:19Summary of Newway Photomask Conference Call Company and Industry Overview - Company: Newway Photomask (688401.SS) - Industry: Semiconductor and Panel Manufacturing - Core Products: Photomasks used in semiconductor manufacturing and panel production, compatible with all generations of panel production lines from G2.5 to G11 [2][3] Key Insights from Management 1. Growing Demand for Photomasks: Management expressed optimism regarding increasing demand for photomasks in the semiconductor sector, aligning with expectations of rising capital expenditure (capex) in China’s semiconductor industry [1][3] 2. Capex Growth Projections: Anticipated growth in China’s semiconductor capex from US$41 billion in 2024 to US$43 billion and US$45 billion in 2025 and 2026, respectively, driven by capacity expansions from foundries and memory players [1] 3. Advanced Nodes Capacity Expansion: Continuous capacity expansion is expected from local foundries in advanced nodes to support the development of local AI chips and the growing AI ecosystem [1] 4. Localization Trend: A rising trend towards localization in semiconductor production is anticipated, initially focusing on logic before expanding to memory over the next two years, which will benefit local suppliers of semiconductor production equipment (SPE) [1] 5. Product Range and Precision: The company primarily covers 130nm+ process nodes, with capabilities extending to 90nm, 40nm, and 14nm. Advanced nodes require higher precision and customization, leading to higher entry barriers for competitors [3] Capacity Expansion Plans - Locations: Management is committed to expanding capacity in Chengdu and Xiamen, focusing on photomasks for both semiconductors and Gen-8.6 OLED panels [3] - Market Diversification: The company aims for a balanced contribution from both semiconductor and panel markets in the long term [3] Investment Recommendations - Buy Recommendations: Analysts recommend buying stocks of companies involved in semiconductor production equipment, including Naura, AMEC, ACMR, Accotest, and Kematek, in light of the positive trends in the semiconductor industry [1] Additional Considerations - Customization Needs: Customers are increasingly requesting customized photomasks, necessitating close collaboration between Newway Photomask and its clients [3] - Defect Tolerance: Advanced nodes exhibit lower defect tolerance, which emphasizes the need for high precision in photomask manufacturing [3]