The global semiconductor market is expected to reach $697.1 billion by 2025, with demand for AI-related chips becoming a core growth driver. The Chinese market accounts for nearly $30 billion, presenting structural opportunities in fields such as computing power chips and storage chips. The industry is showing polarization: demand for data centers and AI chips is surging, while the consumer electronics sector is still in an inventory adjustment cycle. On the policy front, the “East Data, West Computing” project promotes the optimized allocation of computing resources, with the total computing power of eight major hub nodes reaching 215.5 EFlops, and the localization rate accelerating. Computing Power Chips: Domestic substitution enters a new stage of performance benchmarking. (1) Technological breakthroughs and market landscape: Huawei’s Ascend 910C adopts 7nm+ Chiplet technology, achieving half-precision computing power of 320 TFLOPS, with a localization rate exceeding 70%, and performance close to NVIDIA’s H100. Cambricon’s Siyuan 590 chip is compatible with large models with hundreds of billions of parameters and has signed a procurement agreement worth billions with ByteDance, with order quantities exceeding 200,000 units in Q2 2025. Haiguang Information’s Deep Computing No. 3 has landed in Industrial and Commercial Bank’s financial-grade AI solutions, with performance benchmarking NVIDIA’s A100. (2) Core targets: Cambricon (688256): 25% market share in edge computing, turning net profit positive in Q1 2025. Haiguang Information (688041): Deep Computing series chips are being applied in bulk in the financial sector, with revenue growth of 45% year-on-year in the first half of 2025. Huawei’s Ascend ecosystem: Digital China (000034) is a core partner for distributing Ascend servers, and Tuwei Information (002261) is jointly developing AI integrated machines, having deployed over 20 provincial government cloud projects. SOC Chips: Driven by automotive electronics and AIoT. (1) Application scenarios and technological trends: The global automotive chip market is expanding at a compound annual growth rate of 17.6%, with a projected scale exceeding $110 billion by 2025, of which SoC accounts for 44.58%. In the automotive-grade SoC field, NVIDIA’s Thor (2000 TOPS) dominates the high-end market, while Horizon’s Journey 6P (560 TOPS) has a penetration rate of over 15% in L2+ level assisted driving. In the consumer electronics sector, Hengxuan Technology’s BES2700 chip supports active noise cancellation and multi-device connectivity, holding a 74% global market share in TWS headphone chips. (2) Core targets: Rockchip (603893): RK3588 chip supports 8K video encoding and decoding and edge AI computing, with automotive electronics revenue expected to grow by 210% year-on-year in 2024. Hengxuan Technology (688608): 6nm process TWS headphone chip ranks first globally, with a target price of 451.79 yuan by institutions in 2025. Chipone Technology: Automotive-grade SoC shipments exceed one million units, covering smart cockpit and ADAS fields. Optical Chips: High speed and integration reshape the competitive landscape. (1) Market scale and technological breakthroughs: The Chinese optical chip market is expected to reach 15.9-16.6 billion yuan by 2025, driven by demand for 800G/1.6T high-speed optical modules, with chips above 25G growing at over 30%. Zhongji Xuchuang’s 800G optical module holds over 40% market share, and 1.6T products are entering the sample stage; Shijia Photonics’ 25G DFB laser chip has passed Huawei’s certification, with net profit soaring 1712% in the first half of 2025. CPO (Co-Packaged Optics) technology is expected to be deployed at scale by 2027, with Zhongji Xuchuang and Xinyisheng initiating related R&D. (2) Core targets: Zhongji Xuchuang (300308): Global leader in 800G optical modules, with leading technology reserves in 1.6T. Shijia Photonics (688313): Mass production of 25G DFB laser chips, with net profit growth of 17 times in the semi-annual report. Guangxun Technology (002281): Bulk shipments of 400G silicon optical modules, with CPO packaging technology entering the testing phase. Analog Chips: Accelerating domestic substitution in automotive and industrial markets. (1) Industry differentiation and technological barriers: American companies account for over 50% of the global analog chip market, with China’s self-sufficiency rate at only 13.4%, but there is significant room for substitution in automotive-grade and industrial-grade products. Shengbang Technology’s automotive-grade power management chip has passed AEC-Q100 certification and entered BYD’s supply chain; Sirepu’s high-precision operational amplifier has surpassed 8% market share in the industrial automation sector. In 2024, Aiwai Electronics’ shipments are expected to exceed 6 billion units, with net profit growing by 399.68% year-on-year. (2) Core targets: Shengbang Technology (300661): Automotive-grade chip has passed certification, with revenue growth of 35% year-on-year in Q2 2025. Sirepu (688536): Pioneer in domestic substitution of industrial-grade signal chain chips, with R&D investment accounting for over 40%. Aiwai Electronics (688798): Leader in consumer electronics analog chips, with shipments expected to exceed 6 billion units in 2024. Storage Chips: HBM and AI storage reconstruct industry logic. (1) Technological trends and market explosion: The global storage chip market is expected to exceed $234 billion in sales by 2025, with explosive demand for HBM (High Bandwidth Memory), and Micron’s HBM revenue growing nearly 50% quarter-on-quarter. Domestic companies have made breakthroughs in NOR flash and SSD controller fields: GigaDevice’s automotive-grade NOR flash ranks third globally, and Lanqi Technology’s MXC chip supports HBM3, having entered the server supply chain. (2) Core targets: GigaDevice (603986): Third globally in automotive-grade NOR flash, with revenue growth of 28% year-on-year in Q1 2025. Lanqi Technology (688008): Mass production of HBM interface chips, in deep cooperation with Samsung and SK Hynix. Jiangbolong (301308): Leading domestic market share in consumer-grade SSDs, with enterprise-grade storage products entering the procurement list of major internet companies. Risks and Strategies: Technological independence and ecosystem building are key. (1) Core risks: 1. Equipment dependency: The localization rate of front-end manufacturing equipment is only 20%, with a dependency of 78.8% on ion implantation machines. 2. Ecological shortcomings: The number of domestic AI framework developers is only 20% of international platforms, with high application migration costs. 3. Valuation differentiation: Some companies have P/E ratios exceeding 100 times, necessitating caution regarding the risk of a pullback after emotional tides recede. (2) Investment mainline: Technological breakthroughs: Prioritize layout in cutting-edge technology-related targets such as Ascend 910C and HBM. Domestic substitution: Focus on high-end fields such as automotive-grade SoC and industrial-grade analog chips. Policy beneficiaries: Pay attention to winning companies in the “East Data, West Computing” project, such as Zhongke Shuguang (603019) and Inspur Information (000977). The semiconductor industry is undergoing a dual transformation driven by AI and geopolitical reshaping. Sub-sectors such as computing power chips and storage chips have entered a critical stage of performance benchmarking and ecosystem building, with domestic companies possessing core technological barriers expected to become core assets in the digital economy era. In the short term, attention should be paid to supply chain gaps and valuation repairs driven by policy dividends, while in the medium to long term, the sustainability of technological iteration and ecosystem improvement should be tracked.