The changing global trade landscape is injecting unprecedented vitality into China’s semiconductor industry, and a massive wave of domestic substitution is about to take off!
It is expected that eight leading companies in the industry will stand out in this round of transformation and are likely to lead a strong upward trend lasting three years.
This strategic opportunity is rare,and it is essential to add these to your watchlist.
First, Huahai Qingshi (688120) is a leader in the domestic CMP (Chemical Mechanical Polishing) equipment field, holding a 25% market share in CMP equipment for logic chips at 28nm and below, and has secured 70% of the CMP equipment orders for the new SMIC Beijing factory.
Secondly, Tuojing Technology (688072) is a rising star in the thin film deposition equipment sector. Its PECVD (Plasma Enhanced Chemical Vapor Deposition) equipment holds a remarkable 65% market share in the domestic market. Its 12-inch ALD (Atomic Layer Deposition) equipment has been validated by Yangtze Memory Technologies and meets the demands of 128-layer 3D NAND. Notably, Tuojing Technology is collaborating with North Huachuang to develop integrated “Atomic Layer Deposition – Etching” equipment, which is expected to shorten the process cycle by 30%.
Changdian Technology (600584) ranks among the top three in the global advanced packaging field. Its globally pioneering “3D SoIC-X” packaging technology enables vertical stacking of 12-layer chips, improving heat dissipation efficiency by up to 40%. Currently, Changdian Technology is responsible for packaging the entire series of Huawei HiSilicon’s “Kunpeng 920” chips, maintaining a stable yield rate of 99.95%.
Cambricon (688256) is striving to become a disruptor in the AI computing chip field. Its fifth-generation Siyuan (MLU5) chip features an advanced chiplet design with a computing power density of up to 800 TOPS/W. Additionally, Cambricon has successfully won the bid for China Mobile’s “Smart Computing Center” project, providing 20,000 MLU590 accelerator cards.
North Huachuang (002371) is a leading semiconductor equipment platform company in China and the only domestic manufacturer capable of mass-producing five major types of equipment: PVD (Physical Vapor Deposition), CVD, ALD, annealing, and cleaning, with a coverage rate of over 80% for its 14nm equipment. North Huachuang is also co-establishing a “Shared R&D Center” with SMIC to jointly develop more advanced process equipment.
SMEE (688012) is at the international forefront in the etching equipment field. Its high aspect ratio etching equipment (Primo HD-RIE) for 5nm and below has been validated by TSMC, and it is expected that shipments in the first quarter of 2025 will account for 15% of the global market for similar equipment. In 2024, over 60% of its revenue will come from orders from Yangtze Memory Technologies and Changxin Memory Technologies.
Weir Shares (603501) is a leader in the global CIS (Image Sensor) field. Its automotive-grade CIS has passed AEC-Q100 Grade 1 certification, with a market share exceeding 40% on Tesla’s FSD 4.0 platform. To reduce the foundry costs of 28nm CIS, Weir Shares is also co-establishing a shared Fab with Geke Micro.
GigaDevice (603986) is a benchmark enterprise for domestically controllable memory chips. Its yield rate for 128-layer 3D NAND has exceeded 85%, with procurement from Yangtze Memory Technologies increasing to 30%. Furthermore, GigaDevice is co-establishing a “Storage-Computing Integration” joint laboratory with Huawei to jointly develop intelligent storage chips based on 3D Xtacking technology.
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