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Headlines
Apple and Kioxia have signed a 3–5 year long-term NAND supply agreement with no price cap, sending a clear signal of volume prioritization. The IPO price drop of Longsys on its H-share debut hints at valuation divergence at the peak of the memory cycle.
ASML’s new-generation High NA EUV has secured firm adoption commitments from TSMC and Samsung (TSMC targets production rollout in 2030), while 12-inch photomask upgrades are underway. Competition for next-generation lithography has entered the implementation phase.
Samsung faces tight capacity for advanced processes: its Taylor plant will start 2nm trial production at end-September, with full capacity pre-booked. 50%–60% of its 4nm line is allocated to base dies for HBM4.
Compound semiconductor prosperity is materializing: Innoscience posted a 50.6% revenue growth in H1 with positive operating cash flow; Yangjie Technology achieved 30.69% H1 revenue growth and holds outstanding orders worth RMB 4.068 billion.
According to Jiwei Insights, OmniVision has risen to the world’s second-largest CIS supplier, capturing a 13.4% market share, only behind Sony’s 53.6%.
In-depth Analysis
Optical Communication / Optical Chips：The 2026 China International Optoelectronic Exposition (CIOE) kicks off in Shenzhen today. The industrialization progress of new architectures including NPO, CPO and XPO is a major highlight, followed by the Silicon Photonics Industry Summit tomorrow. Samsung has selected the same probe station vendors as TSMC (FormFactor / MPI) for silicon photonic PIC R&D, with plans to complete on-wafer testing by year-end. US optical communication stocks rallied overnight: Lumentum +11%, Corning +7%, Coherent +7%. Jiwei Quick Analysis: LianTech reported H1 revenue of RMB 696 million, up 38.1%, driven by ramp-up of high-speed optical modules; however, foreign exchange losses dragged net profit down by 73%.
Advanced Packaging & Testing：No major new updates today. Citing Huatai Securities: AI computing competition is extending into advanced packaging. Large-size, high-density packaging unlocks new application scenarios for glass substrates, and mass production capacity dictates the pace of industrialization. JCET’s RMB 6.5 billion private placement for capacity expansion, together with the tight supply of ABF substrates, remains a trending theme.
SiC / Power Semiconductors: Innoscience posted H1 revenue of RMB 834 million (+50.6%), gross margin rose to 11.6% (vs -21.6% in H1 2024). Operating cash flow turned positive for the first time, with losses narrowed by 28% to RMB 309 million. Revenue from high-value markets including AI data centers and automotive reached RMB 532 million (+70%), accounting for roughly 64% of total revenue. Yangjie Technology recorded H1 revenue of RMB 4.515 billion (+30.69%) and an all-time high gross margin of 35.72%. Its automotive electronics revenue nearly doubled, and the company established a new AI business unit, with remaining performance obligations of RMB 4.068 billion. A caveat: operating cash flow fell by 34% and foreign exchange losses surged. Tight 8-inch mature-node capacity underpins rising volume and prices for power devices.
Storage & Compute Chips: Apple signed a 3–5 year price-cap-free long-term NAND supply agreement with Kioxia. Longsys’ H-share listing debut on Sep 8 ended below IPO price. Its IPO price of HKD 236 represented a 44% discount relative to its A-share price (~CNY 358). H1 net profit hit RMB 10.577 billion (+71,500%), yet inventory stood at RMB 25.777 billion, accounting for 60% of total assets, with operating cash flow of -RMB 3.151 billion. Its self-developed 5nm UFS 4.1 controller has entered mass production. Samsung’s 4nm line runs at full capacity; 50%–60% is allocated to base dies for HBM4 (monthly capacity ~15,000 wafers). OpenAI plans to deploy the Jalapeño AI chip co-developed with Broadcom before year-end. Intel intends to raise PC CPU prices by another 10% in early October and phase out its small-core product line.
Equipment & Materials: ASML and TSMC announced their High NA partnership: TSMC will adopt it for mass production in 2030, while Samsung will deploy it for DRAM before 2028. The two parties will build a 12-inch photomask pilot line in 2031 and achieve mass production in 2033 to break the existing EUV limit of ~800 mm² chip area. The Ministry of Commerce issued an initial anti-dumping ruling on Japan-origin dichlorosilane and imposed provisional anti-dumping measures in the form of deposits, which benefits domestic silicon epitaxy and electronic specialty gas suppliers. Jiwei Quick Analysis: Fortest posted H1 revenue +34.45% and net profit +992.9%, with non-recurring profit and loss adjusted net profit turning positive. JY Equipment achieved H1 revenue growth of 28.06%. Zimbabwe announced an export ban on antimony and tungsten.
Wafer Fabrication: Samsung’s Taylor fab in Texas will start 2nm trial production at month-end. Initial monthly capacity of 50,000 wafers is fully pre-booked; competition for advanced-node customers has intensified sharply.
Policy & Macro Environment: The National Integrated Circuit Industry Investment Fund reduced its holdings of Centec Communications by 7.0747 million shares between June 8 and September 7. Geopolitical headwinds pushed Brent crude near USD 100 per barrel. The Philadelphia Semiconductor Index rose more than 2% intraday on Sep 8 (Intel +6%, TSMC +3.2%). The Dow closed 1.17% lower in the early hours of Sep 9, while AI computing leasing and optical communication sectors bucked the trend and strengthened.
Daily Investment Tips
1. Divergence in the memory supply chain is widening: the industry remains robust while stock performance weakens. Long-term supply locking by memory vendors and end-device giants underpins medium-term prosperity. However, the steep A/H share discount of Longsys and its H-share IPO debut below the offer price signal valuation risks at the cycle peak. Memory module names warrant caution over stock price stagnation after earnings delivery.
2. With the finalized timeline for ASML High NA and Samsung’s imminent 2nm trial production, the prosperity certainty of the equipment chain has strengthened. Focus on lithography, photomasks and supporting metrology & inspection segments. The anti-dumping ruling on domestic materials has taken effect, potentially opening an accelerated window for domestic substitution in electronic specialty gases and silicon epitaxy.
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