Insights
DeepSeek Releases V3.1 Model, Optimized for Domestic Chips, Catalyzing Industry Turning Point.DeepSeek mentioned in its official announcement of the DeepSeek-V3.1 that it utilizes UE8M0 FP8 Scale parameter precision. DeepSeek stated that UE8M0 FP8 is designed for the upcoming next-generation domestic chips. Additionally, V3.1 has made significant adjustments to the tokenizer and chat template, showing clear differences from DeepSeek-V3. The domestic open-source large model continues to iterate and upgrade, deeply adapting to domestic chips. This optimization of DeepSeek V3.1 for the new generation of domestic chips not only reflects the synergistic effect of domestic computing power and domestic models but also helps to improve the local computing ecosystem. In the context of continuous growth in inference computing power and AI application demand, the linkage between domestic models and domestic hardware is expected to accelerate the industry’s self-controlled process.
NVIDIA’s H20 Chip Sales Plan May Experience New Changes, Highlighting the Long-Term Importance of Establishing a Self-Sufficient Chip Supply Chain.According to reports from Reuters and The Information, NVIDIA has notified some suppliers to suspend the production of components specifically for the Chinese market’s AI chip H20. Meanwhile, the company is developing a new type of AI chip for the Chinese market based on its next-generation Blackwell architecture, which is said to significantly outperform H20.
The semiconductor, domestic computing power, and self-control fields will remain long-term trends in the future.In the context of ongoing uncertainties surrounding AI computing chip trade policies between China and the US, it is expected that domestic large model development companies and internet platforms will gradually increase the procurement and usage scale of domestic chips. Correspondingly, domestic chip suppliers and their supporting industry chain companies are expected to welcome development opportunities, with a focus on the following sub-sectors.
Recommended Focus: 【Chip Design ASIC/GPU】: Cambricon, Haiguang Information, Chipone, Aojie Technology, Dongxin Co. 【Foundry and Testing】: SMIC, Hua Hong, Yongxi Electronics, Weicai Technology.
Meta’s Upcoming Conference, Major Domestic and International Companies Launch AI Glasses, Continued Focus on AI SoC and Storage Segments.The Meta Connect conference will be held on September 17, and AI glasses shipments are expected to exceed expectations. According to Counterpoint data, global smart glasses shipments in the first half of 2025 increased by as much as 110% year-on-year. Starting in the second half of 2025, the market will welcome more new AI smart glasses, and the continuous launch of new products is expected to drive overall AI glasses demand. Major domestic and international companies are continuously focusing on AI glasses, with Meta as an industry pioneer, expecting to release significant wearable devices, which will likely drive the demand for smart glasses.
Google Pixel 10 Series Smartphone Released, Featuring the First Fully Self-Designed Tensor G5 Chip, Completely Abandoning the Previous Samsung Exynos Architecture Modification Model, Manufactured Using TSMC’s 3nm Process Technology.The Tensor G5 achieves significant performance improvements, with CPU performance increasing by 36% and TPU performance, dedicated to AI processing, increasing by a remarkable 60%. This chip is designed to support the Pixel device’s side running more complex Gemini models, supporting features such as smart contextual prompts (Magic Cue) and real-time shooting guidance (Camera Coach),enhancing localized AI experience and becoming the core hardware foundation for Google’s push towards edge AI strategy. Recommended Focus: 【AI SOC】New AI Products Launching, Computing Power and Price Rising: Hengxuan Technology, Starry Technology, Juchip Technology, Rockchip, Espressif Technology, Amlogic, Allwinner Technology, and Zhaoxin Technology. 【Storage/Others】Adapting Computing Power, Demand and Technology Driven by Dual Engines: Jiangbolong, Baiwei Storage, Zhaoyi Innovation, and Runxin Technology.
Summary of Semiconductor Industry’s July Prosperity and Q3 Outlook, Continuing Prosperity.In terms of delivery times and prices: In July, the delivery times of major chip manufacturers increased, and prices of storage, analog, power, and passive component products rebounded. DDR4, as a representative storage, continues to fluctuate in price; delivery times for analog, power, and passive components remain stable, with some prices rebounding; MCU delivery times are stable. Looking ahead to Q3, overall delivery times may increase, and prices are expected to continue to rise steadily, with orders in the distribution sector continuing to improve.
July Semiconductor Supply Chain:In summary, equipment and materials growth is stable, wafer foundry capacity continues to rise, original factory orders are improving, and packaging and testing orders are growing well.Silicon Wafer/Equipment:Semiconductor equipment continues to grow, and material manufacturers’ orders are improving.Wafer Foundry:Foundry orders continue to recover.Packaging Testing:Orders are growing well.
Overall, by 2025, global semiconductor growth will continue to show an optimistic growth trend, driven by AI downstream growth.At the same time, policies regarding supply chain disruptions and reconstruction risks continue to escalate, and domestic substitution is ongoing. In the second quarter, companies across various sectors have bright performance forecasts, and looking ahead to the semiconductor peak season in the third quarter, it is recommended to focus on the performance elasticity of design sectors such as storage/foundry/SoC/ASIC/CIS, and the domestic substitution of equipment materials and components for computing power chips. The storage sector is expected to see a significant increase in contract prices for memory in Q3 2025, with enterprise-level products continuing to advance, driving clear quarter-on-quarter growth for leading companies. Leading wafer foundries may start to raise prices, with optimistic performance outlooks for Q2 and Q3, and marginal changes in advanced processes continuing to catalyze. Edge AI SoC chip companies will benefit from the release of edge AI hardware penetration rates, with high growth already reflected in Q1 and Q2 performance, coupled with the dense release of AI glasses at the end of Q2 and the beginning of Q3, leading to optimistic future outlooks. ASIC companies’ revenue growth is gradually becoming evident, with Deepseek’s entry aiding rapid development. CIS benefits from the demand for smart vehicles and the release of new flagship smartphones driving demand growth. The analog sector shows signs of market recovery, with impressive growth rates in Q2 performance. In the equipment materials sector, the pace of domestic photolithography machine advancement continues to accelerate, and significant catalysts may exist in the industry going forward. In other core equipment areas, leading manufacturers have shown bright performance forecasts for Q1 2025 and some Q2, while domestic substitution continues to advance, and the industry is accelerating resource integration under a new round of mergers, restructuring, and capital operations, helping local leading enterprises build comprehensive technology platforms and strengthen global competitiveness.
Recommended Focus
Computing Power Chips and ASIC:Cambricon/Haiguang Information/Aojie Technology/Chipone
Semiconductor Storage:Jiangbolong (joint coverage by Tianfeng Computer)/Shannon Semiconductor/Demingli/Baiwei Storage/Langke Technology/Lianyun Technology/Zhaoyi Innovation/Beijing Junzheng/Puran Co./Dongxin Co./Hengshuo Co./Lanke Technology/Jucheng Co./Shenzhen Technology/Taiji Industry/Wanrun Technology
IDM Foundry and Testing:Hua Hong Semiconductor/SMIC/Weicai Technology/Yongxi Electronics/Changdian Technology/Tongfu Microelectronics/Huatian Technology/Yangjie Technology/Wentai Technology/San’an Optoelectronics/Liyang Chip
SoC and Supporting Solution Providers:Hengxuan Technology/Tailing Micro/Starry Technology/Rockchip/Amlogic/Allwinner Technology/Espressif Technology/Zhaoxin Technology/Runxin Technology/Juchip Technology/Fuhan Micro
Semiconductor Materials, Equipment, and Components:North Huachuang/Jingzhida/Guanshi Technology/Jingyi Equipment/Glinda/Baiao Chemical/Yake Technology/Dinglong Co. (joint coverage by Tianfeng Chemical)/Tianyue Advanced/Heyuan Gas/Zhengfan Technology (joint coverage by Tianfeng Machinery)/Zhongwei Company/Tuojing Technology/Fuchuang Precision/Jingzhida/Hu Silicon Industry/Shanghai Xinyang/Anji Technology/Shengmei Shanghai/Zhongjuxin/Qingyi Optoelectronics/Youyan New Materials/Huate Gas/Nanda Optoelectronics/Kaimete Gas/Jinhaitong (joint coverage by Tianfeng Machinery)/Hongrida/Jingce Electronics/Guoli Co./Xinlai Materials/Changchuan Technology (joint coverage by Tianfeng Machinery)/Liandong Technology/Maolai Optics/Aisen Co./Jiangfeng Electronics
Photonic Chip Industry Chain:Maolai Optics/Huicheng Vacuum/Wavelength Optoelectronics/Fujing Technology/Fuguang Co.
High-Reliability Electronics:Shengjing Micro/Electronic Science Chip/Jingjia Micro/Zhongrun Optics/Changguang Huaxin/Shanghai Fudan/Fudan Microelectronics
Risk Warning:Unpredictable risks brought by geopolitical factors, demand recovery not meeting expectations, technology iteration not meeting expectations, and risks of changes in industrial policies.
1. Optimistic Outlook for Semiconductor Industry in Q3: Continued Focus on Domestic Computing Power and Self-Controlled Directions
DeepSeek Releases V3.1 Model, Optimized for Domestic Chips, Catalyzing Industry Turning Point.DeepSeek mentioned in its official announcement of the DeepSeek-V3.1 that it utilizes UE8M0 FP8 Scale parameter precision. DeepSeek stated that UE8M0 FP8 is designed for the upcoming next-generation domestic chips. Additionally, V3.1 has made significant adjustments to the tokenizer and chat template, showing clear differences from DeepSeek-V3. The domestic open-source large model continues to iterate and upgrade, deeply adapting to domestic chips. This optimization of DeepSeek V3.1 for the new generation of domestic chips not only reflects the synergistic effect of domestic computing power and domestic models but also helps to improve the local computing ecosystem. In the context of continuous growth in inference computing power and AI application demand, the linkage between domestic models and domestic hardware is expected to accelerate the industry’s self-controlled process.
NVIDIA’s H20 Chip Sales Plan May Experience New Changes, Highlighting the Long-Term Importance of Establishing a Self-Sufficient Chip Supply Chain.According to reports from Reuters and The Information, NVIDIA has notified some suppliers to suspend the production of components specifically for the Chinese market’s AI chip H20. Meanwhile, the company is developing a new type of AI chip for the Chinese market based on its next-generation Blackwell architecture, which is said to significantly outperform H20.
The semiconductor, domestic computing power, and self-control fields will remain long-term trends in the future.In the context of ongoing uncertainties surrounding AI computing chip trade policies between China and the US, it is expected that domestic large model development companies and internet platforms will gradually increase the procurement and usage scale of domestic chips. Correspondingly, domestic chip suppliers and their supporting industry chain companies are expected to welcome development opportunities, with a focus on the following sub-sectors.
Recommended Focus: 【Chip Design ASIC/GPU】: Cambricon, Haiguang Information, Chipone, Aojie Technology, Dongxin Co. 【Foundry and Testing】: SMIC, Hua Hong, Yongxi Electronics, Weicai Technology.
Meta’s Upcoming Conference, Major Domestic and International Companies Launch AI Glasses, Continued Focus on AI SoC and Storage Segments.The Meta Connect conference will be held on September 17, and AI glasses shipments are expected to exceed expectations. According to Counterpoint data, global smart glasses shipments in the first half of 2025 increased by as much as 110% year-on-year. Starting in the second half of 2025, the market will welcome more new AI smart glasses, and the continuous launch of new products is expected to drive overall AI glasses demand. Major domestic and international companies are continuously focusing on AI glasses, with Meta as an industry pioneer, expecting to release significant wearable devices, which will likely drive the demand for smart glasses.
Google Pixel 10 Series Smartphone Released, Featuring the First Fully Self-Designed Tensor G5 Chip, Completely Abandoning the Previous Samsung Exynos Architecture Modification Model, Manufactured Using TSMC’s 3nm Process Technology.The Tensor G5 achieves significant performance improvements, with CPU performance increasing by 36% and TPU performance, dedicated to AI processing, increasing by a remarkable 60%. This chip is designed to support the Pixel device’s side running more complex Gemini models, supporting features such as smart contextual prompts (Magic Cue) and real-time shooting guidance (Camera Coach),enhancing localized AI experience and becoming the core hardware foundation for Google’s push towards edge AI strategy. Recommended Focus: 【AI SOC】New AI Products Launching, Computing Power and Price Rising: Hengxuan Technology, Starry Technology, Juchip Technology, Rockchip, Espressif Technology, Amlogic, Allwinner Technology, and Zhaoxin Technology. 【Storage/Others】Adapting Computing Power, Demand and Technology Driven by Dual Engines: Jiangbolong, Baiwei Storage, Zhaoyi Innovation, and Runxin Technology.
Summary of Semiconductor Industry’s July Prosperity and Q3 Outlook, Continuing Prosperity.In terms of delivery times and prices: In July, the delivery times of major chip manufacturers increased, and prices of storage, analog, power, and passive component products rebounded. DDR4, as a representative storage, continues to fluctuate in price; delivery times for analog, power, and passive components remain stable, with some prices rebounding; MCU delivery times are stable. Looking ahead to Q3, overall delivery times may increase, and prices are expected to continue to rise steadily, with orders in the distribution sector continuing to improve.
July Semiconductor Supply Chain:In summary, equipment and materials growth is stable, wafer foundry capacity continues to rise, original factory orders are improving, and packaging and testing orders are growing well.Silicon Wafer/Equipment:Semiconductor equipment continues to grow, and material manufacturers’ orders are improving.Wafer Foundry:Foundry orders continue to recover.Packaging Testing:Orders are growing well.
Overall, by 2025, global semiconductor growth will continue to show an optimistic growth trend, driven by AI downstream growth.At the same time, policies regarding supply chain disruptions and reconstruction risks continue to escalate, and domestic substitution is ongoing. In the second quarter, companies across various sectors have bright performance forecasts, and looking ahead to the semiconductor peak season in the third quarter, it is recommended to focus on the performance elasticity of design sectors such as storage/foundry/SoC/ASIC/CIS, and the domestic substitution of equipment materials and components for computing power chips. The storage sector is expected to see a significant increase in contract prices for memory in Q3 2025, with enterprise-level products continuing to advance, driving clear quarter-on-quarter growth for leading companies. Leading wafer foundries may start to raise prices, with optimistic performance outlooks for Q2 and Q3, and marginal changes in advanced processes continuing to catalyze. Edge AI SoC chip companies will benefit from the release of edge AI hardware penetration rates, with high growth already reflected in Q1 and Q2 performance, coupled with the dense release of AI glasses at the end of Q2 and the beginning of Q3, leading to optimistic future outlooks. ASIC companies’ revenue growth is gradually becoming evident, with Deepseek’s entry aiding rapid development. CIS benefits from the demand for smart vehicles and the release of new flagship smartphones driving demand growth. The analog sector shows signs of market recovery, with impressive growth rates in Q2 performance. In the equipment materials sector, the pace of domestic photolithography machine advancement continues to accelerate, and significant catalysts may exist in the industry going forward. In other core equipment areas, leading manufacturers have shown bright performance forecasts for Q1 2025 and some Q2, while domestic substitution continues to advance, and the industry is accelerating resource integration under a new round of mergers, restructuring, and capital operations, helping local leading enterprises build comprehensive technology platforms and strengthen global competitiveness.
Recommended Focus
Computing Power Chips and ASIC:Cambricon/Haiguang Information/Aojie Technology/Chipone
Semiconductor Storage:Jiangbolong (joint coverage by Tianfeng Computer)/Shannon Semiconductor/Demingli/Baiwei Storage/Langke Technology/Lianyun Technology/Zhaoyi Innovation/Beijing Junzheng/Puran Co./Dongxin Co./Hengshuo Co./Lanke Technology/Jucheng Co./Shenzhen Technology/Taiji Industry/Wanrun Technology
IDM Foundry and Testing:Hua Hong Semiconductor/SMIC/Weicai Technology/Yongxi Electronics/Changdian Technology/Tongfu Microelectronics/Huatian Technology/Yangjie Technology/Wentai Technology/San’an Optoelectronics/Liyang Chip
SoC and Supporting Solution Providers:Hengxuan Technology/Tailing Micro/Starry Technology/Rockchip/Amlogic/Allwinner Technology/Espressif Technology/Zhaoxin Technology/Runxin Technology/Juchip Technology/Fuhan Micro
Semiconductor Materials, Equipment, and Components:North Huachuang/Jingzhida/Guanshi Technology/Jingyi Equipment/Glinda/Baiao Chemical/Yake Technology/Dinglong Co. (joint coverage by Tianfeng Chemical)/Tianyue Advanced/Heyuan Gas/Zhengfan Technology (joint coverage by Tianfeng Machinery)/Zhongwei Company/Tuojing Technology/Fuchuang Precision/Jingzhida/Hu Silicon Industry/Shanghai Xinyang/Anji Technology/Shengmei Shanghai/Zhongjuxin/Qingyi Optoelectronics/Youyan New Materials/Huate Gas/Nanda Optoelectronics/Kaimete Gas/Jinhaitong (joint coverage by Tianfeng Machinery)/Hongrida/Jingce Electronics/Guoli Co./Xinlai Materials/Changchuan Technology (joint coverage by Tianfeng Machinery)/Liandong Technology/Maolai Optics/Aisen Co./Jiangfeng Electronics
Photonic Chip Industry Chain:Maolai Optics/Huicheng Vacuum/Wavelength Optoelectronics/Fujing Technology/Fuguang Co.
High-Reliability Electronics:Shengjing Micro/Electronic Science Chip/Jingjia Micro/Zhongrun Optics/Changguang Huaxin/Shanghai Fudan/Fudan Microelectronics
Risk Warning:Unpredictable risks brought by geopolitical factors, demand recovery not meeting expectations, technology iteration not meeting expectations, and risks of changes in industrial policies.
Note: The report excerpts are from Tianfeng Securities Research Institute’s publicly released research report, for specific report content and related risk warnings, please refer to the full report.
Research Report “Optimistic Outlook for Semiconductor Industry in Q3: Continued Focus on Domestic Computing Power and Self-Controlled Directions”
External Release Date: August 25, 2025
Report Issued by: Tianfeng Securities Co., Ltd.
Report Analysts:
Pan Yan, SAC Practice Certificate No.: S1110517070005
Li Hongyi, SAC Practice Certificate No.: S1110524040006
Luo Yiyang, SAC Practice Certificate No.: S1110521050001
Cheng Ruying, SAC Practice Certificate No.: S1110521110002
Tianfeng Electronics Pan Yan Team Member Introduction
Pan Yan, Chief Analyst of the Electronics Industry at Tianfeng Securities.Master’s in Microelectronics and Solid Electronics from Fudan University, Bachelor’s in Microelectronics from Fudan University, second major in International Economics and Trade, previously worked as an analyst at Anxin Securities, with comprehensive insights into the electronics industry, having discovered numerous high-growth enterprises and collaborated deeply with the industry to help enterprises develop, skilled in recommending investment opportunities in the technology innovation cycle. In 2019 and 2020, ranked fourth and second respectively in the New Fortune Best Analyst Awards, shortlisted in 2021, member of the first team in 2015-2016, second team in 2017, and ranked second in the Golden Bull Award in 2017, 2020, and 2021. Ranked first in the Wind Gold Analyst Award in 2018, second in 2020-2021. Ranked third, fourth, and sixth in the Golden Unicorn Best Analyst Awards in 2019-2021. Ranked third in the Shanghai Securities Journal Best Analyst Awards in 2020, and fifth in the 21st Century Gold Analyst Awards in 2021, and third in the Choice 2021 Annual Best Analyst Awards in the Electronics Industry.
Wen Yuzhang, Analyst.Background in Computer and Industrial Engineering, with over 12 years of experience in R&D and new product introduction for Apple products (iPod & iPhone), with a deep understanding of the development trends in the electronics, computer, and internet industry chains.
Luo Yiyang, Analyst.Bachelor’s in Physics from Nanjing University, Master’s in Integrated Circuit Design from Hong Kong University of Science and Technology. Three years of research experience in the electronics industry, covering semiconductor manufacturing, semiconductor equipment materials, and some semiconductor design.
Li Hongyi, Analyst.Bachelor’s in Accounting and Finance from Emory University, Master’s in Accounting, covering semiconductor packaging testing and some materials equipment, having written several in-depth industry reports including automotive chips, third-generation semiconductors, and virtual displays.
Cheng Ruying, Analyst.Master’s in Computer Science from Peking University, covering IC design, MCU/SOC/IGBT/analog chip industry and company coverage reports.
Xu Junfeng, Analyst.Master’s in Business Administration from the University of Birmingham, covering security, LED, automotive connectors, and smart cockpit.
Feng Haofan, Assistant Researcher.Bachelor’s in Information Systems from the University of New South Wales, Master’s in Finance, covering some automotive electronics fields.
Bao Hengxing, Assistant Researcher.Bachelor’s in Material Physics from Nanjing University, Master’s in Material Physics and Chemistry, covering the consumer electronics field.
Gao Jingyi, Assistant Researcher.Master’s in Accounting from Central University of Finance and Economics, covering the semiconductor field.