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Apple’s Fall Event concluded: The A20 Pro marks the first 2nm chip for mobile devices (6-core CPU + 7-core GPU + dual 32-core Neural Engine). The foldable iPhone Duo starts at RMB 15,999 for the China mainland version, ushering edge AI hardware into the 2nm era.
Overnight, the three major US stock indices closed lower (Nasdaq -0.64%), while memory and optical communication stocks bucked the downtrend: SK Hynix +7%, Micron +2%, Marvell +4. Capital continues to validate the memory price hike thesis.
A wave of capacity expansion is sweeping memory packaging and testing. DeepTek Peiton plans to invest RMB 1.85 billion in 2.5D/3DS advanced packaging capacity. WeTest Technology intends to issue convertible bonds of up to RMB 2 billion to expand high-end testing capacity for AI, memory and CIS chips.
Power semiconductor price hikes are spreading: Renesas Electronics announced its second price increase this year (new pricing effective Jan 1, 2027). SiC substrate firm Tianyu Semiconductor turned profitable in H1, with 8-inch revenue surpassing 6-inch revenue for the first time.
A new round of electronic fabric price increases has taken effect. Driven by supply shortages and active capacity expansion by leading manufacturers, the upstream materials boom will extend into 2026–2027.
In-depth Analysis
No major new order updates today, yet catalysts remain abundant. The CIOE (China International Optoelectronic Exposition) runs from Sep 9 to 11 in Shenzhen; 1.6T has entered its first year of commercialization while 3.2T solutions are on display. The Jiwei Silicon Photonics Industry Summit for the AI Computing Era kicks off today, featuring 13 presentations covering the full value chain of silicon photonics design, manufacturing and packaging & testing. Engineering progress of CPO stands out as the core highlight. Overnight, US optical communication stocks defied the broader market and rose (Marvell +4%, Lumentum +1%).
Advanced Packaging & Testing：DeepTek announced that its subsidiary Peiton Technology will invest RMB 1.85 billion to expand high-end memory packaging and testing capacity. Of the total investment, RMB 1.22 billion will fund the establishment of Shenzhen Peiton Semiconductor Packaging & Testing, targeting a monthly capacity of 90,000 wafers for conventional packaging and testing plus 10,000 wafers for 2.5D advanced packaging. Another RMB 630 million will go toward a 2.5D/3DS advanced packaging R&D line. Both projects are scheduled for completion in December 2028, marking accelerated upgrades of domestic memory packaging and testing toward 2.5D/3D technology. WeTest Technology plans to issue convertible bonds of up to RMB 2 billion to expand capacity at testing bases in Shanghai and Southwest China. The 18th IC Packaging & Testing Industry Chain Innovation Development Forum opens in Wuxi. No major updates on ABF substrates / packaging substrates today (the tight capacity situation at Unimicron has been covered previously).
SiC / Power Semiconductors: Renesas Electronics announced its second price adjustment this year, with new pricing effective January 1, 2027 (the first hike was announced in March and took effect July 1). The upward pricing trend for power devices continues; watch for potential follow-on price increases from domestic IDMs. Tianyu Semiconductor’s interim report shows H1 revenue of RMB 348 million (+4.3%) and a net loss of RMB 123 million for the period. Revenue from 8-inch wafers surpassed that from 6-inch wafers for the first time. The SiC sector is in a cyclical bottom and capacity upgrade phase, and the profit inflection point remains pending.
Storage & Compute Chips: Apple’s A20 Pro adopts the 2nm process, and pre-orders for the iPhone 18 Pro will open on September 12. Overnight, SK Hynix surged more than 7%, leading gains among memory names. A UBS report shows average DRAM/NAND prices rose month-on-month by 8.3%/9.8% in July, with DDR prices projected to climb another 22% in Q3; supply shortage may persist into 2027. OpenAI confirmed it is co-developing next-generation custom chips with Samsung, reinforcing demand-side fundamentals for memory.
Equipment & Materials: A China Securities Journal survey confirms a new round of price hikes for electronic fabric amid supply shortages. Leading manufacturers are actively expanding capacity, with new projects to come online sequentially in 2026–2027. Xunxin Investment, a shareholder of Advanced Micro-Fabrication Equipment (AMEC), has completed its share reduction (cumulative reduction of 1.84% worth roughly RMB 6.2 billion), cutting its holding ratio to 6.86%.
Wafer Fabrication: TSMC will release its August revenue report at 13:30 today. The market is focused on the 3nm output value proportion and 2nm ramp momentum (prior institutional estimates put Q3 3nm output value above NTD 400 billion for the first time). No other major developments.
Policy & Macro Environment: CME data shows the probability of a Fed rate hike in September has risen to 60.2%. Overnight oil prices spiked (Brent crude at USD 101.21 per barrel), stoking inflation concerns. High US Treasury yields weigh on growth stock valuations. The State Council Information Office will hold a press conference on the "15th Five-Year Plan" for the financial sector at 15:00 today. The 2026 China Computing Conference (Sep 11–13, Langfang) is approaching, where new domestic AI computing chips and advanced packaging products will be unveiled in a concentrated batch.
Daily Investment Tips
1. Dense catalyst window: NVIDIA will present at Goldman Sachs’ Communications & Technology Conference tonight (focus on remarks regarding Vera Rubin mass production and HBM supply). The Computing Conference kicks off tomorrow, and TSMC’s August revenue figures are released today. Sentiment across the AI computing and advanced process chains may be driven by multiple events; mind profit-taking timing.
2. The price-hike thesis is spreading from memory to packaging & testing services, electronic fabric and power devices (Renesas’ second price increase this year serves as a key signal). Rotation within this "price-rise chain" merits tracking. However, rising Fed rate hike expectations coupled with high oil prices weigh on valuations. Beware of amplified volatility in high-valued sectors.
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