Stock Research Report

Analysis of Leading Stocks and Core Value Stocks in Advanced Packaging, Memory Chips, and MCU Chips

Investment Highlights

Industry Outlook: The semiconductor industry is undergoing structural transformation, with advanced packaging, memory chips, and MCU chips benefiting from the explosive demand for AI computing power, accelerated domestic substitution, and technological iteration, leading to continuous market expansion. By 2025, the market size of China’s advanced packaging is expected to reach 85.2 billion yuan, the memory chip market size is expected to reach 32.1 billion USD, and the localization rate of MCU chips continues to improve.

Core Tracks: The three sub-sectors are showing differentiated development paths:

Advanced Packaging: Leading companies such as Changdian Technology, Tongfu Microelectronics, and Huatian Technology are at the forefront, with Chiplet technology achieving mass production breakthroughs, and the market size is expected to exceed 85.2 billion yuan by 2025.

Memory Chips: Domestic companies like GigaDevice and Beijing Junzheng occupy leading positions in the NOR Flash and automotive DRAM sectors, with HBM technology accelerating layout.

MCU Chips: Companies like GigaDevice and Zhongying Electronics are continuously making strides in the 32-bit MCU market, with RISC-V architecture bringing new opportunities.

Key Recommendations:

Advanced Packaging: Changdian Technology (global leader in packaging and testing, mass production of XDFOI Chiplet technology), Tongfu Microelectronics (breakthrough in Chiplet technology, leading in HBM packaging), Huatian Technology (leading in 2.5D packaging technology)

Memory Chips: GigaDevice (domestic leader in memory across all platforms, accelerating HBM layout), Lanqi Technology (global leader in DDR5 memory interface chips), Shannon Semiconductor (core agent for SK Hynix HBM)

MCU Chips: GigaDevice (domestic leader in 32-bit MCU), Zhongying Electronics (leading in smart appliance MCU), Espressif Technology (leading in RISC-V architecture technology)

Risk Warning: The speed of technological iteration may not meet expectations; intensified industry competition may lead to price wars; changes in the international trade environment may affect overseas business expansion; the domestic substitution process may face obstacles.

1. Analysis of the Advanced Packaging Sector: Chiplet Technology Leading Industry Transformation

1.1 Current Status and Development Trends of the Advanced Packaging Market

Advanced packaging is a key link in the semiconductor industry chain, experiencing rapid growth against the backdrop of explosive demand for AI computing power. As Moore’s Law approaches its physical limits, advanced packaging technology has become an important means to enhance chip performance.

Market Size: The market size of China’s advanced packaging is expected to grow from 35.1 billion yuan in 2020 to 69.8 billion yuan in 2024, with a compound annual growth rate of 18.7%. By 2025, the market size is expected to reach 85.2 billion yuan, maintaining a rapid growth trend due to continuous domestic technological advancements and increasing market demand.

Technological Iteration: Advanced packaging technology is evolving from traditional packaging to Chiplet, 2.5D/3D packaging, wafer-level packaging (WLP), and system-in-package (SiP). Among these, Chiplet technology is a crucial path in the post-Moore era, effectively enhancing chip performance and reducing costs by breaking down complex chips into multiple small chip units (dies) with individual functions, which are then combined through advanced packaging technology to form a system-level chip.

Market Structure: The advanced packaging industry in China is highly concentrated, with Changdian Technology, Tongfu Microelectronics, and Huatian Technology being the three leading companies. Changdian Technology’s advanced packaging business covers 2.5D/3D packaging, wafer-level packaging, and system-level packaging, with XDFOI Chiplet technology already in mass production, widely used in high-performance computing and AI chips. Tongfu Microelectronics has made breakthroughs in Chiplet technology and HBM packaging, actively laying out glass substrate packaging technology to serve international clients like AMD. Huatian Technology’s advantages include automotive electronics packaging and 2.5D packaging, with products like dual-sided plastic BGA SIP and ultra-high integration uMCP already in mass production.

1.2 Analysis of the Advanced Packaging Industry Chain

The advanced packaging industry chain mainly includes upstream material and equipment suppliers, midstream packaging testing service providers, and downstream application fields.

Upstream Links: This includes packaging materials (such as lead frames, packaging substrates, bonding wires, epoxy molding compounds, etc.) and packaging equipment (such as pick-and-place machines, wire bonders, dicing machines, testing equipment, etc.) suppliers. This segment has high technical barriers, and some high-end materials and equipment still rely on imports.

Midstream Links: This mainly consists of packaging testing service providers responsible for packaging and testing chips. Chinese manufacturers have strong competitiveness in this segment, with Changdian Technology, Tongfu Microelectronics, and Huatian Technology occupying important positions in the global packaging market.

Downstream Links: This includes consumer electronics, automotive electronics, communication equipment, industrial control, AI servers, and other application fields. With the explosive demand for AI computing power, the demand for advanced packaging in high-performance computing and AI chips has significantly increased.

1.3 Analysis of Core Targets in Advanced Packaging

1.3.1 Changdian Technology (600584): Global Leader in Packaging and Testing, Leading in Chiplet Technology

Core Competitiveness: Changdian Technology is a leading global semiconductor packaging and testing manufacturer with strong technical capabilities in advanced packaging. The company’s XDFOI Chiplet technology has achieved mass production, widely used in high-performance computing and AI chips. The company has a strong R&D team and advanced production equipment, capable of providing high-quality packaging solutions for customers.

Market Position: Changdian Technology is the third-largest packaging and testing company globally and the largest in China, with a global market share exceeding 15%. The company’s domestic market share exceeds 20%, with clients including Qualcomm, NVIDIA, and AMD.

Performance: In the first half of 2025, Changdian Technology achieved operating revenue of 35.96 billion yuan, a year-on-year increase of 21.24%; net profit was 1.61 billion yuan, a year-on-year increase of 9.52%. Additionally, the first quarter net profit is expected to reach 200 million yuan, a year-on-year increase of about 50%. The company’s performance growth is mainly attributed to the rapid development of advanced packaging technology and increasing market demand.

Technological Innovation: The high-density multi-dimensional heterogeneous integration process launched by Changdian Technology has been widely applied in high-performance computing and AI fields. The company’s XDFOI Chiplet technology enables higher integration and lower power consumption, providing strong support for AI chips.

Recent Performance: As of August 28, 2025, Changdian Technology’s stock price was 40.41 yuan, with a market capitalization of 71.899 billion yuan. In the past seven trading days, the stock rose on four days, with an overall increase of 5.36%, and the market capitalization increased by 3.74 billion yuan. On August 27, the company’s main funds had a net outflow of 18.2118 million yuan, while large single funds had a net inflow of 200 million yuan, and retail funds had a net inflow of 181 million yuan.

Investment Highlights: As a global leader in packaging and testing, Changdian Technology is at the forefront of Chiplet technology, deeply benefiting from the growth in advanced packaging demand driven by the explosive demand for AI computing power. The company’s leading position in the domestic market and its technological innovation capabilities provide strong support for its long-term development.

1.3.2 Tongfu Microelectronics (002156): Breakthrough in Chiplet Technology, Leading in HBM Packaging

Core Competitiveness: Tongfu Microelectronics has made breakthroughs in Chiplet technology and HBM packaging, actively laying out glass substrate packaging technology. The company possesses advanced packaging technology and a wealth of customer resources, capable of providing high-quality packaging solutions for clients.

Market Position: Tongfu Microelectronics is the fifth-largest packaging and testing company globally and the second-largest in China, with a global market share exceeding 10%. The company’s domestic market share exceeds 15%, with clients including AMD and MediaTek.

Technological Innovation: Tongfu Microelectronics has successfully overcome several advanced packaging testing technologies, including Chiplet technology and HBM packaging technology. The company’s technological breakthroughs in HBM packaging enable it to provide high-performance packaging solutions for clients like AMD.

Investment Highlights: Tongfu Microelectronics’ breakthroughs in Chiplet and HBM packaging technologies give it strong competitiveness in the context of explosive demand for AI computing power. The company’s close cooperation with international clients like AMD provides stable support for its business growth.

1.3.3 Huatian Technology (002185): Leading in 2.5D Packaging Technology, Significant Advantages in Automotive Electronics Packaging

Core Competitiveness: Huatian Technology’s advantages include automotive electronics packaging and 2.5D packaging, with products like dual-sided plastic BGA SIP and ultra-high integration uMCP already in mass production. The company’s products are recognized for their high reliability and stability in automotive electronics and other fields.

Market Position: Huatian Technology is the sixth-largest packaging and testing company globally and the third-largest in China, with a global market share exceeding 8%. The company’s domestic market share exceeds 10%, with clients including NVIDIA and AMD.

Technological Innovation: Huatian Technology’s 2.5D and FOPLP projects have made positive progress, with several products already capable of mass production. The company’s technological advantages in automotive electronics packaging enable it to meet the high reliability packaging demands of automotive intelligence.

Investment Highlights: Huatian Technology’s technological advantages in automotive electronics packaging and 2.5D packaging provide good development prospects in the context of growing demand for automotive intelligence and AI computing power. The optimization of the company’s product structure and technological innovation will support its performance growth.

1.3.4 Chipone Technology (688521): Leading Company in Chiplet Technology, Combining IP and Chiplet

Core Competitiveness: Chipone Technology is a leading domestic semiconductor IP and Chiplet technology service provider, dedicated to promoting Chiplet technology and industry through “IP chipification, IP as a Chiplet” and “chip platformization, Chiplet as a Platform” to achieve Chiplet industrialization.

Market Position: Chipone Technology is the largest semiconductor IP supplier in China, ranking among the top ten in the global semiconductor IP market. The company’s Chiplet technology is seen as an important technological path for China’s chip industry to achieve “curve overtaking” and is expected to be among the first globally to launch commercial Chiplet products.

Performance: In the first half of 2025, Chipone Technology achieved operating revenue of 2.456 billion yuan, a year-on-year increase of 57.84%; net profit was 899 million yuan, a year-on-year increase of 37.46%. The company’s R&D investment amounted to 126 million yuan, an increase of 11.97% compared to the same period last year.

Technological Innovation: Chipone Technology completed a private placement, issuing 24.86 million shares at 72.68 yuan per share, raising 1.78 billion yuan, mainly for the R&D of Chiplet solutions in AIGC and smart travel fields, as well as new generation IP R&D and industrialization projects. The company’s continuous investment in Chiplet technology keeps it at the forefront in this field.

Recent Performance: Chipone Technology’s stock has performed strongly recently, with a stage increase of over 61%. Market speculation around Chipone Technology mainly revolves around its leading position in Chiplet technology and ASIC chips. The company’s Chiplet technology is seen as an important technological path for China’s chip industry to achieve “curve overtaking”.

Investment Highlights: Chipone Technology’s leading position in Chiplet technology and continuous innovation capabilities provide it with high investment value against the backdrop of semiconductor industry upgrades and growing AI computing power demand. The company’s IP+Chiplet model provides new growth points for its business growth.

1.3.5 Dagang Technology (002077): Leading in Advanced Packaging, Active Chiplet Concept

Core Competitiveness: Dagang Technology is a leader in advanced packaging, with its wholly-owned subsidiary Shanghai Minai serving as a specialized independent third-party integrated circuit testing company, possessing a complete mid-to-high-end IC testing service system. Its affiliated company Suzhou Keyang is a well-known wafer-level advanced packaging enterprise with an annual production capacity of 3 billion chips, providing key solutions for many top domestic semiconductor companies.

Market Position: Dagang Technology holds a certain market position in the domestic wafer-level packaging field and is a leading solution provider in the global TSV advanced packaging sub-sector, ranking among the top 20 in the Suzhou integrated circuit industry chain.

Recent Performance: Dagang Technology is an active stock in the Chiplet concept, with strong recent stock performance. Over the past five trading days, Dagang Technology has seen two days of decline, with an overall decrease of 0.28%, a peak price of 14.66 yuan, a lowest price of 14.28 yuan, and a total trading volume of 84.634 million hands.

Investment Highlights: Dagang Technology’s layout in the advanced packaging field and the activity of the Chiplet concept provide it with certain investment value against the backdrop of semiconductor industry upgrades and accelerated domestic substitution. The technological advantages of its affiliated company Suzhou Keyang in wafer-level packaging provide it with business growth points.

2. Analysis of the Memory Chip Sector: AI-Driven Demand Growth, Accelerated Domestic Substitution

2.1 Current Status and Development Trends of the Memory Chip Market

Memory chips are an important component of the semiconductor industry, experiencing rapid growth in the Chinese memory chip market against the backdrop of explosive demand for AI computing power and accelerated domestic substitution.

Market Size: In the second quarter of 2025, the global DRAM market size is expected to grow by 20% quarter-on-quarter, reaching a historical high of 32.1 billion USD. In the third quarter of 2025, the consumer DRAM market is expected to experience severe supply-demand imbalance, with contract prices soaring by 60%-85% in July, and institutions predict that the increase will further expand to 90% this quarter. Meanwhile, AI servers are driving a surge in demand for high-value DRAM (such as HBM3E, DDR5).

Technological Iteration: Memory chip technology is evolving from DDR4 to DDR5 and HBM. The iteration of DDR5 memory interface chip technology is accelerating, with the penetration rate of DDR5 continuing to rise. HBM (High Bandwidth Memory) is a key component for AI servers, with explosive demand, becoming an important direction for the development of memory chip technology.

Market Structure: The global memory chip market is highly concentrated, with international giants like Samsung, SK Hynix, and Micron dominating the market. Chinese memory chip companies have made breakthroughs in sub-sectors like NOR Flash and niche DRAM, with companies like GigaDevice, Beijing Junzheng, and Lanqi Technology occupying a certain share in the global market. GigaDevice is the only integrated circuit design company globally ranked in the top ten in NOR Flash, SLC NAND Flash, niche DRAM, and MCU fields.

2.2 Analysis of the Memory Chip Industry Chain

The memory chip industry chain mainly includes upstream material and equipment suppliers, midstream memory chip design and manufacturing companies, and downstream application fields.

Upstream Links: This includes wafer manufacturing materials (such as silicon wafers, photoresists, masks, etc.) and manufacturing equipment (such as photolithography machines, etching machines, thin film deposition equipment, etc.) suppliers. This segment has high technical barriers, and some high-end materials and equipment still rely on imports.

Midstream Links: This includes memory chip design companies (such as GigaDevice, Beijing Junzheng, Lanqi Technology, etc.), memory chip manufacturing companies (such as SMIC, Changxin Memory, etc.), and memory chip packaging and testing companies (such as Deep Technology, Changdian Technology, etc.). Chinese companies have made breakthroughs in memory chip design, but there is still a significant gap in memory chip manufacturing.

Downstream Links: This includes consumer electronics, automotive electronics, communication equipment, industrial control, AI servers, and other application fields. With the explosive demand for AI computing power, the demand for high-performance memory chips (such as HBM, DDR5) has significantly increased.

2.3 Analysis of Core Targets in Memory Chips

2.3.1 GigaDevice (603986): Domestic Leader in Memory Chips Across All Platforms, Accelerating HBM Layout

Core Competitiveness: GigaDevice is the domestic leader in memory chips across all platforms, ranking third in the global NOR Flash market, and is the only design company in China covering all categories of memory chips. The company’s main products are flash memory chips, including NOR Flash, SLC NAND Flash, and niche DRAM.

Market Position: GigaDevice is the only integrated circuit design company globally ranked in the top ten in NOR Flash, SLC NAND Flash, niche DRAM, and MCU fields. Based on 2024 sales statistics, the company ranks third in the global NOR Flash market with a market share of about 6%; in the niche DRAM market, it ranks seventh globally and second in mainland China, with a market share of about 1.2%.

Performance: In the first half of 2025, GigaDevice achieved operating revenue of 4.15 billion yuan, a year-on-year increase of 15%; net profit attributable to the parent company was 575 million yuan, a year-on-year increase of 11.31%. During the reporting period, the company’s products achieved rapid year-on-year growth in revenue and sales across multiple fields, including storage and computing, mobile phones, automotive, and consumer electronics. Q1 net profit was 234.6 million yuan, and Q2 net profit was 340.8 million yuan, a quarter-on-quarter increase of 45.27%.

Technological Innovation: GigaDevice is actively laying out HBM technology, with its HBM products being high-bandwidth memory for specialized fields, meeting relevant industry standards. Currently, the company’s HBM products are in the sample system integration verification stage, and subsequent products will be considered for mass production based on market conditions after verification.

Recent Performance: As of August 28, 2025, GigaDevice’s stock price was 125.93 yuan, with a market capitalization of 124.314 billion yuan. The company’s stock has performed strongly recently, with a limit-up on August 21, benefiting from the industry boom due to a 85%-90% surge in DDR4 prices in the third quarter, coupled with the explosive demand for AI servers and smart hardware, accelerating the domestic substitution of memory chips.

Investment Highlights: As the domestic leader in memory chips across all platforms, GigaDevice deeply benefits from the DRAM price increase cycle and growing demand for AI computing power. The company’s layout across all categories of memory chips and the acceleration of domestic substitution provide strong performance elasticity and long-term development potential.

2.3.2 Lanqi Technology (688008): Global Benchmark for DDR5 Memory Interface Chip Technology

Core Competitiveness: Lanqi Technology is a global benchmark for DDR5 memory interface chip technology, leading the formulation of international standards. The company’s memory interface chips have a global market share of up to 47%, leading in the server storage control chip field.

Market Position: Lanqi Technology, along with Renesas and Rambus, occupies a dominant position in the global memory interface chip market, with a market share exceeding 40% in the DDR4 era. As the penetration rate of DDR5 continues to rise, the company’s share in the DDR5 memory interface chip market is further expanding.

Performance: In the first quarter of 2025, Lanqi Technology’s net profit surged by 135% year-on-year, mainly benefiting from the accelerated penetration of DDR5 driven by AI server upgrades. The company is a beneficiary of DDR5 technology iteration and is actively laying out high-bandwidth memory (HBM) for AI servers, with its technology supporting high-bandwidth storage demands.

Technological Innovation: Lanqi Technology’s second-generation DDR5 products have been sent to major global manufacturers for sampling, with technical indicators at the industry-leading level. The company’s technological advantages in DDR5 memory interface chips enable it to lead the formulation of international standards and maintain a leading position in technology.

Investment Highlights: As a global benchmark for DDR5 memory interface chip technology, Lanqi Technology deeply benefits from the iteration of DDR5 technology and the growing demand for AI servers. The company’s global leading position in memory interface chips and its technological innovation capabilities provide strong support for its long-term development.

2.3.3 Shannon Semiconductor (300475): Core Agent for SK Hynix HBM Chips

Core Competitiveness: Shannon Semiconductor is the core agent for SK Hynix HBM chips, binding with cloud service giants like Alibaba and Tencent. The company has a strong competitive advantage in the distribution of HBM chips through close cooperation with SK Hynix.

Market Position: Shannon Semiconductor is a leading semiconductor distributor in China, leading in the distribution of HBM chips. The company’s strategic partnership with SK Hynix allows it to secure a stable supply of HBM chips and support domestic AI server manufacturers.

Performance: In the first quarter of 2025, Shannon Semiconductor’s revenue grew by 243%, driven by the demand for AI servers, leading to a surge in its distribution business, with annual revenue expected to exceed 30 billion. The company’s performance growth is mainly attributed to the rapid growth in demand for HBM chips and the expansion of the AI server market.

Investment Highlights: As the core agent for SK Hynix HBM chips, Shannon Semiconductor deeply benefits from the explosive demand for HBM chips from AI servers. The company’s partnerships with cloud service giants provide stable customer resources for its business growth.

2.3.4 Deep Technology (000021): Largest DRAM Packaging Company in China

Core Competitiveness: Deep Technology is the largest independent DRAM packaging company in China, undertaking orders from Changxin Memory and serving as a core supplier for Huawei. The company has advanced technology and rich experience in the DRAM packaging field, capable of providing high-quality packaging services for clients.

Market Position: Deep Technology is the largest DRAM packaging company in China, with a market share exceeding 20%. The company provides professional packaging services for international giants like SK Hynix, with its technical strength and market competitiveness leading in the industry.

Technological Innovation: Deep Technology’s Hefei base is accelerating expansion, entering the HBM packaging track. The company’s technological accumulation in DRAM packaging enables it to quickly enter the HBM packaging market, supporting AI servers.

Investment Highlights: As the largest DRAM packaging company in China, Deep Technology deeply benefits from the growth in DRAM market demand and accelerated domestic substitution. The company’s layout in HBM packaging provides new business growth points.

2.3.5 Unisoc (002049): Full Industry Chain Layout for Memory Chips

Core Competitiveness: Unisoc is the only company in China to achieve a full industry chain layout for memory chips, excelling in secure memory chips and special integrated circuits. The company’s products cover second-generation ID card chips, financial IC cards, and it is also a leading domestic FPGA chip company.

Market Position: Unisoc is a leading company in the secure memory chip field in China, with products widely used in finance, government, telecommunications, and other fields. The company’s market share in FPGA chips is also continuously increasing.

Technological Innovation: Unisoc is actively laying out HBM technology, with its HBM products being high-bandwidth memory for specialized fields, meeting relevant industry standards. In January 2025, the company disclosed on the interactive platform that its HBM products are in the sample system integration verification stage, and subsequent products will be considered for mass production based on market conditions after verification.

Investment Highlights: As the only company in China to achieve a full industry chain layout for memory chips, Unisoc plays an important role in the domestic memory chip localization process. The company’s technological advantages in secure memory chips and special integrated circuits provide business growth points.

2.3.6 Beijing Junzheng (300223): Leader in Automotive DRAM Market

Core Competitiveness: Beijing Junzheng occupies a 15% market share in the global automotive DRAM market, leading the field. The company’s product range is rich, covering SRAM, DRAM, Flash, etc. Through the acquisition of ISSI, Beijing Junzheng successfully entered the automotive-grade storage market, with technical strength comparable to international giants like Micron and Samsung.

Market Position: Beijing Junzheng is a leading enterprise in the global automotive DRAM market, with a market share exceeding 15%. The company’s products are widely used in automotive electronics, industrial control, and smart wearables.

Performance: Beijing Junzheng’s automotive MCU chips are currently mainly used for interior lighting control and touch control. The company has also achieved certain results in the R&D and sales of memory chips and analog chips.

Investment Highlights: Beijing Junzheng’s leading position and technical advantages in the automotive DRAM market provide good development prospects against the backdrop of automotive intelligence. The optimization of the company’s product structure and technological innovation will support its performance growth.

2.4 HBM Technology Route Analysis

HBM (High Bandwidth Memory) is a key component for AI servers, characterized by high bandwidth and low power consumption, capable of meeting the rapid access needs of AI chips for massive data.

Market Size: Goldman Sachs analysts expect the global HBM (high bandwidth memory chip) market size to grow at a compound annual growth rate of about 100% from 2023 to 2026, reaching 30 billion USD by 2026.

Technological Iteration: HBM technology is evolving from HBM3 to HBM3E and HBM4. SK Hynix has indicated that the development cycle for HBM has been shortened to one year. HBM3E has only been on the market for a short time, and HBM4 is already in development, with SK Hynix expecting to achieve mass production of 12-layer HBM4 by 2025, leading in development progress.

Market Structure: The global HBM market is highly concentrated, with Samsung, SK Hynix, and Micron occupying all market shares, accounting for approximately 50%, 40%, and 10%, respectively, and this has remained stable in recent years.

Core Target Analysis:

2.4.1 Saiteng Technology (603283): Leader in HBM Testing Equipment

Core Competitiveness: Saiteng Technology is the leader in HBM testing equipment, being the only company in China to achieve mass production of HBM measurement equipment. The company has acquired global leading HBM full-process testing technology through the acquisition of Japan’s Optima, with a measurement accuracy of 0.1μm.

Market Position: Saiteng Technology is the only company in A-shares to achieve mass production of HBM measurement equipment, deeply binding with international giants like Samsung and SK Hynix. In the first quarter of 2025, the company delivered 37 units of equipment, with orders exceeding 1.1 billion yuan. Domestic clients like Yiswei and Zhonghuan Semiconductor are accelerating order fulfillment, and after the production of the Nanjing base, the annual production capacity will reach 300 units, with domestic substitution space exceeding 10 billion.

Performance: In the first half of 2025, Saiteng Technology achieved operating revenue of 1.208 billion yuan, a year-on-year increase of 48.50%; net profit attributable to the parent company was 33.5308 million yuan, a year-on-year increase of 981.11%. The company’s Q1 net profit was 14.53 million yuan, and Q2 net profit was 19.01 million yuan, a quarter-on-quarter increase of 30.83%.

Investment Highlights: As the leader in HBM testing equipment, Saiteng Technology deeply benefits from the explosive growth in HBM market demand. The company’s technological advantages and customer resources provide a stable foundation for its business growth.

2.4.2 Yake Technology (002409): Leader in HBM Precursor Materials

Core Competitiveness: Yake Technology is the leader in HBM precursor materials, with orders increasing due to SK Hynix’s HBM3E expansion. The company is a global leader in precursor materials, with High-K precursors certified by SK Hynix for use in HBM stacking dielectric layers.

Market Position: Yake Technology is in a leading position in the HBM precursor materials field, being an important supplier for international giants like SK Hynix.

Performance: Yake Technology’s net profit growth rate in 2024 is expected to exceed 25%, mainly benefiting from the growing demand for HBM precursor materials. The company’s precursor materials are key materials for HBM production, and with the growth in HBM demand, the company’s performance is expected to continue to improve.

Investment Highlights: As the leader in HBM precursor materials, Yake Technology deeply benefits from the growth in HBM market demand. The company’s technological advantages and customer resources provide a stable foundation for its business growth.

2.4.3 Xingsen Technology (002436): The Only Domestic Supplier of HBM Substrates

Core Competitiveness: Xingsen Technology is the only domestic supplier of HBM substrates, with technological advantages and production capacity layout in the HBM substrate field.

Market Position: Xingsen Technology is the only company in China capable of providing HBM substrates, playing an important role in the domestic HBM substrate localization process.

Investment Highlights: As the only domestic supplier of HBM substrates, Xingsen Technology deeply benefits from the growth in HBM market demand and the acceleration of the localization process. The company’s technological advantages and production capacity layout provide business growth points.

3. Analysis of the MCU Chip Sector: Accelerated Domestic Substitution, RISC-V Brings New Opportunities

3.1 Current Status and Development Trends of the MCU Chip Market

MCUs (Microcontrollers) are the basic control chips for a vast array of electronic devices, with overseas giants previously occupying the majority of the market share. Since 2021, the shortage and price surge of MCUs from overseas giants have been prominent, leading to chip shortages in some downstream sectors, including automotive, prompting domestic downstream customers to accelerate the localization of the MCU supply chain.

Market Size: The Chinese MCU market continues to grow, with the domestic substitution process accelerating. As demand for MCUs in automotive electronics, industrial control, and consumer electronics increases, the market size of China’s MCUs is expanding.

Technological Iteration: MCU technology is evolving from 8-bit and 16-bit to 32-bit and 64-bit, with performance continuously improving. The RISC-V architecture, as an emerging open-source instruction set architecture, brings new opportunities for MCU technology development. MCUs based on RISC-V architecture feature open-source, flexibility, and customizability, becoming an important direction for MCU technology development.

Market Structure: The global MCU market is highly concentrated, with international giants like Renesas, NXP, Microchip, and Infineon dominating the market. Chinese MCU companies have made breakthroughs in the mid-to-low-end market, with GigaDevice, Zhongying Electronics, and Espressif Technology occupying a certain share in the 32-bit MCU market. Based on 2024 sales statistics, GigaDevice’s MCU products have a global market share of 1.2%, ranking eighth globally and first in mainland China.

3.2 Analysis of the MCU Chip Industry Chain

The MCU chip industry chain mainly includes upstream material and equipment suppliers, midstream MCU chip design and manufacturing companies, and downstream application fields.

Upstream Links: This includes wafer manufacturing materials and manufacturing equipment suppliers. This segment has high technical barriers, and some high-end materials and equipment still rely on imports.

Midstream Links: This includes MCU chip design companies (such as GigaDevice, Zhongying Electronics, Espressif Technology, etc.), MCU chip manufacturing companies (such as SMIC, Huahong Semiconductor, etc.), and MCU chip packaging and testing companies. Chinese companies have made breakthroughs in MCU design, but there is still a significant gap in manufacturing.

Downstream Links: This includes consumer electronics, automotive electronics, industrial control, smart home devices, medical equipment, and other application fields. With the development of emerging technologies like the Internet of Things and artificial intelligence, the application of MCUs in various fields is continuously expanding.

3.3 Analysis of Core Targets in MCU Chips

3.3.1 GigaDevice (603986): Domestic Leader in 32-bit MCUs

Core Competitiveness: GigaDevice is the domestic leader in 32-bit MCUs, with related revenue growth of 29.56% in 2024 and a revenue growth of 17.32% in the first quarter of 2025. The company occupies a leading position in the 32-bit MCU product field, and its product line is one of the company’s important strategic directions.

Market Position: Based on 2024 sales statistics, GigaDevice’s MCU products have a global market share of 1.2%, ranking eighth globally and first in mainland China. The company has successfully mass-produced over 700 MCU products across 64 major series for market selection.

Technological Innovation: GigaDevice provides full-stack chip-level support for humanoid robots, covering MCU, sensors, and storage, from perception to decision-making to execution. The company has collaborated with several leading intelligent embodiment companies.

Investment Highlights: As the domestic leader in 32-bit MCUs, GigaDevice deeply benefits from the accelerated domestic substitution process and market demand growth. The company’s full-stack product matrix and technological innovation capabilities provide strong support for its long-term development.

3.3.2 Zhongying Electronics (300327): Leading Company in Smart Appliance MCUs

Core Competitiveness: Zhongying Electronics is a leading company in smart appliance MCUs, with a revenue growth of 5.28% in the first quarter of 2025. The company has technological advantages and market share advantages in the smart appliance MCU field, with products widely used in smart appliances and industrial control.

Market Position: Zhongying Electronics is a leading enterprise in the domestic smart appliance MCU field, with a market share exceeding 20%. The company’s products have high recognition and market acceptance in the smart appliance field.

Technological Innovation: Zhongying Electronics continues to innovate in the smart appliance MCU field, continuously improving product performance and functionality to meet the high-performance, low-power MCU demands of smart appliances.

Investment Highlights: As a leading company in smart appliance MCUs, Zhongying Electronics deeply benefits from the rapid growth of the smart appliance market. The company’s technological advantages and customer resources provide a stable foundation for its business growth.

3.3.3 Espressif Technology (688018): Leading in RISC-V Architecture Technology

Core Competitiveness: Espressif Technology adopts RISC-V architecture, with net profit attributable to the parent company expected to grow by 185%-195% in the mid-2025 report. The company has technological advantages and market share advantages in the RISC-V architecture MCU field, with products widely used in the Internet of Things and smart home fields.

Market Position: Espressif Technology is a leading company in the domestic RISC-V architecture MCU field, with its market share continuously increasing. The company’s products have high recognition and market acceptance in the Internet of Things field.

Technological Innovation: Espressif Technology continues to innovate in the RISC-V architecture MCU field, continuously improving product performance and functionality to meet the high-performance, low-power MCU demands of the Internet of Things.

Investment Highlights: As a leading company in the RISC-V architecture MCU field, Espressif Technology deeply benefits from the rapid growth of the Internet of Things market and the popularity of RISC-V architecture. The company’s technological advantages and product innovation will support its performance growth.

3.3.4 Chengdu Huami (688709): Ultra-Low Power RISC-V MCU

Core Competitiveness: Chengdu Huami is a leading domestic semiconductor company that recently successfully launched its self-developed ultra-low power RISC-V MCU. The HWD01001 MCU integrates the company’s self-designed 32-bit RISC-V core, adopts a three-stage pipeline design, with a maximum operating frequency of 20MHz, supporting hardware multiplication and division instructions.

Market Position: Chengdu Huami has a certain market position in the RISC-V architecture MCU field, with its products being competitive in the low-power, high-performance MCU market.

Technological Innovation: Chengdu Huami’s HWD01001 MCU can wake up quickly within 150us in standby mode, with standby power consumption of less than 1uA, built-in 64KB eFlash, 8KB SRAM, operating voltage of 1.8V~3.6V, supporting various peripheral interfaces such as USART x2, LPUART x1, SPI x1, I2C x1, CAN 2.0 x1, supporting 12bits 1MSPS ADC and DAC, and built-in comparators, available in QFN20 and QFN28 package forms.

Investment Highlights: As an innovative enterprise in the RISC-V architecture MCU field, Chengdu Huami’s ultra-low power MCU products have broad application prospects in the Internet of Things, wearable devices, environmental sensing devices, and industrial monitoring equipment.

3.4 RISC-V Technology Route Analysis

RISC-V is an open-source instruction set architecture characterized by openness, flexibility, and customizability, bringing new opportunities for MCU technology development.

Market Size: As RISC-V technology matures and application fields expand, the market size for RISC-V architecture MCUs is continuously growing. RISC-V has broad application prospects in the Internet of Things, edge computing, and embedded systems.

Technical Characteristics: The RISC-V instruction set can be freely used for any purpose, allowing anyone or any company to design, manufacture, and sell RISC-V chips and software. This characteristic gives RISC-V unique advantages in the open-source ecosystem and domestic substitution.

Market Structure: The RISC-V market is still in its early development stage, with domestic and foreign companies actively laying out. Domestic companies have made breakthroughs in the RISC-V architecture MCU field, with GigaDevice, Chengdu Huami, and Espressif Technology launching MCU products based on RISC-V architecture.

Core Target Analysis:

3.4.1 Feilixin (300287): RISC-V Architecture MCU

Core Competitiveness: Feilixin’s self-developed MCU chip is a 32-bit microcontroller based on a completely self-owned intellectual property processor IP core, equipped with a self-controllable development environment, using RISC-V instruction set as the core.

Market Position: Feilixin’s RISC-V architecture MCU is mainly used in the company’s own products, such as the Internet of Things and conference terminals, including the voting terminal for the company’s conference voting system, achieving a fully self-controllable conference voting system.

Technological Innovation: Feilixin’s MCU chip has good future market application scenarios, and the company is developing a complete set of application modules for practical application scenarios of the chip, providing strong support for Feilixin’s business expansion in the fields of the Internet of Things, smart meetings, smart manufacturing, information security, and military-civilian integration.

Investment Highlights: As a player in the RISC-V architecture MCU field, Feilixin’s products have application prospects in the Internet of Things and smart meetings. The company’s technological innovation and product layout provide business growth points.

3.4.2 Yitong Technology (300211): RISC-V Architecture Wearable AI Processor

Core Competitiveness: Yitong Technology’s subsidiary has developed the Huangshan 2S chip, the first dual-core RISC-V architecture wearable AI processor, with broad application prospects.

Market Position: Yitong Technology has a certain market position in the RISC-V architecture wearable AI processor field, with products applied in wearable devices and health care.

Technological Innovation: Yitong Technology’s Huangshan 2S chip adopts a dual-core RISC-V architecture, featuring high performance and low power consumption, meeting the demands of wearable devices for AI processors.

Investment Highlights: As an innovative enterprise in the RISC-V architecture wearable AI processor field, Yitong Technology’s products have broad application prospects in wearable devices and health care.

3.4.3 Haoli Technology (002729): RISC-V Architecture MCU Application Solutions

Core Competitiveness: Haoli Technology has jointly designed a domestic MCU product application solution based on the RISC-V instruction set with the Institute of Data Intelligence, promoting the domestic substitution process of RISC-V in related fields.

Market Position: Haoli Technology has a certain market position in the RISC-V architecture MCU application solution field, with products applied in industrial control and consumer electronics.

Technological Innovation: Haoli Technology’s RISC-V architecture MCU application solution features flexibility and customizability, meeting the demands of different fields for MCUs.

Investment Highlights: As a promoter of RISC-V architecture MCU application solutions, Haoli Technology’s products have application prospects in industrial control and consumer electronics. The company’s technological innovation and cooperative resources provide business growth points.

4. Investment Strategies and Risk Analysis

4.1 Investment Strategy Recommendations

Based on the analysis of the advanced packaging, memory chip, and MCU chip sectors, combined with the current market environment and industry development trends, the following investment strategy recommendations are proposed:

1. Focus on High-Prosperity Sub-sectors

Advanced Packaging: Focus on companies leading in Chiplet technology, such as Changdian Technology, Tongfu Microelectronics, and Chipone Technology. Chiplet technology, as an important technological path in the post-Moore era, will become a significant growth point in the advanced packaging field.

Memory Chips: Focus on companies in the DDR5 and HBM fields, such as Lanqi Technology, GigaDevice, and Shannon Semiconductor. The increase in DDR5 penetration and the explosive demand for HBM will drive growth in the memory chip market.

MCU Chips: Focus on companies in the 32-bit MCU and RISC-V architecture MCU fields, such as GigaDevice, Espressif Technology, and Chengdu Huami. With the development of the Internet of Things and artificial intelligence, the demand for high-performance, low-power MCUs will continue to grow.

2. Select Industry Leading Companies

Industry leading companies typically have advantages in technology, scale, and customer resources, making them more resilient and growth-oriented in market competition. In the three sectors, it is recommended to prioritize investments in leading companies.

3. Pay Attention to Technological Innovation and Industrial Upgrading

The semiconductor industry has a fast pace of technological iteration, and a company’s technological innovation capability is key to long-term competitiveness. It is recommended to pay attention to companies with layouts in cutting-edge technology fields, such as those related to Chiplet, HBM, and RISC-V technologies.

4. Balanced Allocation to Diversify Risks

It is recommended to achieve balanced allocation across the three sectors to diversify risks in a single field. Quality companies in advanced packaging, memory chips, and MCU chips can be laid out simultaneously.

5. Long-term Investment to Capture Industry Trends

The semiconductor industry is the infrastructure supporting the development of the digital economy, with clear long-term growth potential. It is recommended that investors adopt a long-term investment strategy to capture the major trends in industry development and share in the growth dividends of the industry.

4.2 Risk Warnings

1. Technological Iteration Risks

The semiconductor industry has a fast pace of technological iteration, and if companies fail to keep up with technological upgrades in a timely manner, they may face risks of declining product competitiveness. The development of new technologies such as Chiplet, HBM, and RISC-V may also impact traditional technology routes.

2. Intensified Market Competition RisksAs the semiconductor market expands, industry competition may further intensify, leading to price declines and margin squeezes. The rapid increase in the global market share of Chinese manufacturers may also trigger international trade frictions.

3. Supply Chain Risks

The semiconductor industry chain is long, and upstream core components such as optical chips and wafer manufacturing materials still have import dependencies. Changes in the international trade environment may lead to supply chain disruptions or cost increases, affecting normal production and operations of companies.

4. Macroeconomic Fluctuation RisksThe development of the semiconductor industry is closely related to the macroeconomic environment. If global economic growth slows or enters recession, it may affect companies’ capital expenditures and market demand.

5. Policy Change RisksThe semiconductor industry is significantly influenced by policies, and policy changes may lead to market demand falling short of expectations. For example, the U.S. restrictions on China’s semiconductor industry may impact the development of Chinese companies.

6. Valuation RisksSome leading companies in the semiconductor sector currently have valuations at historically high levels, and if performance growth falls short of expectations, they may face valuation correction risks.

5. Conclusion and Outlook

5.1 Industry Outlook

The semiconductor industry is the core industry supporting the development of the digital economy, and against the backdrop of explosive demand for AI computing power and accelerated domestic substitution, China’s semiconductor industry is ushering in significant development opportunities.

1. Outlook for the Advanced Packaging Market

The market size of China’s advanced packaging will continue to grow, expected to reach 85.2 billion yuan by 2025. Chiplet technology will become an important growth point in the advanced packaging field, supporting high-performance computing and AI chips.

2. Outlook for the Memory Chip Market

The memory chip market will continue to benefit from the growing demand for AI servers and accelerated domestic substitution. The increase in DDR5 penetration and explosive demand for HBM will drive the expansion of the memory chip market size. The global HBM market size is expected to reach 30 billion USD by 2026.

3. Outlook for the MCU Chip Market

The MCU chip market will benefit from the development of the Internet of Things, artificial intelligence, and automotive electronics. The 32-bit MCU and RISC-V architecture MCU will become important directions for market development. The accelerated domestic substitution process will provide broad market space for Chinese MCU companies.

5.2 Investment Value Summary

All three sectors have high investment value but exhibit different development characteristics and investment opportunities:

1. Advanced Packaging Sector

Companies Related to Chiplet Technology: Such as Changdian Technology, Tongfu Microelectronics, and Chipone Technology, deeply benefiting from the growth in advanced packaging demand driven by the explosive demand for AI computing power.

Investment Value: Advanced packaging is a key link in the semiconductor industry chain, and Chiplet technology, as an important technological path in the post-Moore era, has broad application prospects. Leading companies’ advantages in technology and market share provide them with long-term competitiveness.

2. Memory Chip Sector

Companies in DDR5 and HBM Fields: Such as Lanqi Technology, GigaDevice, and Shannon Semiconductor, deeply benefiting from the increase in DDR5 penetration and explosive demand for HBM.

Investment Value: Memory chips are core components for AI servers, and as demand for AI computing power grows, the demand for high-performance memory chips will continue to increase. The accelerated domestic substitution process will provide new development opportunities for Chinese memory chip companies.

3. MCU Chip Sector

32-bit MCU and RISC-V Architecture MCU Companies: Such as GigaDevice, Espressif Technology, and Chengdu Huami, benefiting from the development of the Internet of Things, artificial intelligence, and automotive electronics.

Investment Value: MCU chips are the basic control chips for a vast array of electronic devices, and as the Internet of Things, artificial intelligence, and automotive electronics develop, the demand for high-performance, low-power MCUs will continue to grow. The open-source nature and domestic substitution advantages of RISC-V architecture will bring new opportunities to the MCU chip market.

5.3 Future Development Trends

1. AI-Driven Technological Innovation

The demand for AI computing power will continue to drive semiconductor technological innovation, accelerating the development of technologies such as Chiplet, HBM, and RISC-V. The demand for high-performance, low-power semiconductor components for AI servers will promote technological iteration and product upgrades.

2. Accelerated Localization Process of the Industry Chain

With increased national support for the semiconductor industry, the localization process of the semiconductor industry chain will accelerate. The technological breakthroughs and market share increases of Chinese companies in memory chips, MCU chips, and advanced packaging will become a long-term trend.

3. Diversified Application Scenario Expansion

Semiconductor technology application scenarios will further expand, playing important roles not only in traditional consumer electronics, computing, and communication fields but also in automotive electronics, industrial control, medical equipment, the Internet of Things, and artificial intelligence.

4. Rise of Open Source Ecosystem and RISC-V

As an open-source instruction set architecture, RISC-V will play an important role in the open-source ecosystem and domestic substitution. RISC-V architecture MCUs will achieve widespread application in the Internet of Things, edge computing, and embedded systems.

5. Industry Collaboration and Ecosystem Building

The semiconductor industry will strengthen collaboration along the industry chain, building a more complete industry ecosystem. Cooperation between enterprises and ecosystem building will become important ways to enhance industry competitiveness.

In summary, China’s semiconductor industry is in a rapid development stage, with broad development prospects in the three sectors of advanced packaging, memory chips, and MCU chips. Investors can choose quality targets in these three sectors based on their risk preferences and investment goals to share in the growth dividends of China’s semiconductor industry.

Special Statement: The content related to this account is compiled from publicly available historical data on the internet. If there are any errors, please refer to the latest data. This is for research and discussion purposes only and does not constitute any investment advice. Please do not use this as a basis for investment reference. If there are any inappropriate aspects, please feel free to supplement and correct. Investment involves risks, and caution is advised.