Prev
Click the blue text and follow us
✦
JUMBO SHEEN
INVESTMENT
✦
Headlines
Alibaba T-Head released Zhenwu V900, a domestically developed AI chip. Its computing power triples that of the previous-generation M890, and a single cluster can scale up to 500,000 cards. Alibaba also unveiled the roadmap for three generations of Yitian server CPUs — Yitian 720/730/750 — which support the self-developed ICN bus for direct interconnection with Zhenwu. Alibaba commits that the scale of data centers operated by Alibaba Cloud will exceed 20 GW by 2032.
Memory supply keeps tightening. Institutional estimates show ChangXin Memory has acquired mass-production capability for HBM3. Its three fabs in Hefei and Beijing deliver a monthly capacity of roughly 300,000 wafers. After new fabs come online in 2027, total DRAM capacity will double, potentially supplying 3 million pieces of 24GB HBM3 to support 500,000–750,000 domestic GPUs. A special meeting of the Wuhan Municipal Party Committee confirmed full support for Yangtze Memory’s capital increase and capacity expansion.
Glass substrate packaging accelerates. BOE’s pilot line for glass-based packaging substrates has been fully connected. It has produced 24-layer substrates exceeding 100×100 mm, which have passed in-house reliability testing. Electrical performance verification with customers after chip tape-out is underway. Total investment has reached nearly RMB 1 billion, with the target to meet mass-production investment requirements in H1 2027. Meanwhile, Intel published a patent for Micro LED embedded glass substrates with TGV power supply, and advances EMIB validation as well as its India fab project.
Automotive-grade & power semiconductor capacity expansion: Corelink Integration has fully completed its RMB 2.129 billion capital contribution and holds a 25.1% stake in Corelink Advanced. The funds will be deployed for Phase IV projects with total investment of around RMB 20 billion, planning a monthly capacity of 50,000 pieces of 12-inch automotive-grade mixed-signal chips (40/28nm MCU/DSP, 90/55nm BCD/DrMOS, 55nm silicon photonics).
Breakthroughs in localized equipment and materials: CITIC Construction Investment highlights MFC, blank photomasks and electrostatic chucks as segments with the steepest localization growth curves. Phase III of the National Integrated Circuit Industry Investment Fund targets equipment components and materials. Jiwei Consulting released the 2026 Photomask Industry Research Report, marking domestic substitution entering deeper stages.
In-depth Analysis
Optical Communications / Optical Chips: Biwin Storage disclosed that its OEC (Opto-Electronic Co-packaged) products are under joint development with customers for 6.4T NPO optical engine packaging, with R&D completion expected in Q4 2026. The Phase IV project of Corelink Advanced plans a 55nm silicon photonics process production line targeting optical communication and optical interconnect foundry services. BOE has completed a demo for Micro LED short-reach optical interconnection (light source emission transmitted via 19-core optical fiber). It expects to finish full-system and eye diagram demonstrations by year-end and push forward investment in its opto-electronic co-packaging platform. On the market front, leading optical module vendors are actively securing core materials including DSPs, mSAP PCBs and high-speed optical chips, while PCB manufacturers have successively initiated repricing.
Advanced Packaging & Testing：Biwin Storage plans to invest RMB 4.5 billion for Phase III of its wafer-level advanced packaging and testing project (including RMB 4 billion in fixed-asset investment). Phase I and II with total investment of RMB 3.09 billion have been completed, delivering a monthly capacity of roughly 3,000 wafers. The operating entity Xincheng Hanqi supports 2.5D, RDL, Fan-in and Fan-out processes. Dijiang Technology, initiated by Youzu Network, has launched an advanced packaging production line in Shanghai. It aims to build a full-spectrum 2.5D/3D process platform, providing one-stop foundry services for high-computing-power clients such as AI and memory players. On the substrate side, BOE’s glass-based substrates and Intel’s TGV/Micro LED roadmap represent the latest updates for the day. No new price hike or supply disruption news emerged for ABF substrates. A Lyon Securities research note highlights South Korea’s end-to-end advantages across HBM, bonding, substrates and testing, assigning a “high-conviction outperform” rating to SK Hynix and Samsung Electro-Mechanics.
SiC / Power Semiconductors: Corelink Integration’s Phase IV 12-inch automotive-grade fab with monthly capacity of 50,000 wafers marks the largest new-capacity signal for the segment. On September 22, Tianyu Semiconductor repurchased 48,050 H-shares at around HKD 2.011 million. Jiejie Microelectronics stated it only conducts small-batch packaging and testing for SiC devices, with mass production yet to start. Navitas subscribed to MagnaChip’s new shares for approximately USD 5 million (USD 3.42 per share, 1.462 million shares) to shore up its AI power supply manufacturing capability.
Memory & Compute Chips: Beyond ChangXin’s HBM3 progress, CPU pricing logic has drawn market attention. TrendForce reports AMD plans to raise prices of relevant products by roughly 10% in Q4 2026, while Intel is rumored to lift quotations for PC CPUs again in October. Meta Muse AI agents lift expectations for higher CPU density on servers. Jiwei Net flash news: Hygon Information released its brand-new 1000-series CPU chips; Loongson Technology rolled out a software-based general-purpose GPU accelerated computing platform; the second-generation SoC of Shanghai Airoha Technology is scheduled for tape-out in Q1 2027. Apple’s new Mac mini and Mac Studio have officially launched.
Equipment & Materials: CITIC Construction Investment views semiconductor equipment components as the final fortress for industrial chain breakthrough. Amid escalating export controls and targeted investment from Phase III of the National IC Fund, local development of MFCs, blank photomasks and electrostatic chucks is being accelerated. Jiwei Consulting published the 2026 Photomask Industry Research Report, showing steady expansion of the global market. Fujifilm plans to invest approximately INR 80 billion (around USD 83 million) to build a semiconductor material base in Dholera, Gujarat, India, targeting commercialization in FY2028 and tying in with Tata’s wafer fab. Jiangfeng Electronics intends to provide a guarantee for a RMB 300 million loan to its subsidiary Hunan Jiangfeng Technology.
Wafer Fabrication: Yuexin Semiconductor set its IPO offer price at RMB 12.01 per share, with online and offline subscription scheduled on September 24. Price-hike expectations persist for mature nodes (UMC, Powerchip). Together with Corelink Integration’s capacity expansion of its 12-inch automotive-grade fab, capacity and price elasticity of mature specialty processes remain the core theme for foundries.
Policy & Macro Environment: The Wuhan Municipal Party Committee held a special meeting to advance high-quality development of the integrated circuit industry. It stressed full support for leading players including Yangtze Memory in capital increase and capacity expansion, and further implementation of the “Plane Tree Plan” to attract upstream and downstream supporting enterprises. On September 22, US Nasdaq hit another all-time high; the Philadelphia Semiconductor Index rose over 2%, marking its highest closing level since mid-July. Memory stocks rallied broadly (SanDisk +6%+, Micron +5%). Optimistic expectations for China-US presidential talks drove capital inflows back into AI hardware.
Daily Investment Tips
1. Opportunities: Capacity expansion in memory and breakthroughs in domestic HBM (ChangXin’s 3 million HBM3 units supporting 500,000–750,000 domestic GPUs) create synergies. Coupled with price hikes in mature process nodes, order delivery certainty rises across the expansion chain of equipment components, glass-based / IC substrates and advanced packaging & testing. Focus on market-share breakthroughs in segments with low localization rates (MFCs, blank photomasks, electrostatic chucks, front-end metrology & inspection).
2. Risks: Valuations of AI hardware are highly sensitive to interest rates and the progress of China-US economic and trade negotiations. The Philadelphia Semiconductor Index has reached a recent stage high. Meanwhile, price increases for upstream materials including photoresist, substrates and electronic fabric push up costs for midstream and downstream players. If end-market demand or capex momentum falls short of expectations, there is a timing lag risk for earnings delivery across the price-hike chain.
Jumbo Sheen FundDisclaimer:The content involved in this article is for sharing and exchange purposes only, and shall not be construed as investment advice. It is provided merely for readers' reference. All copyrights of the quoted content belong to the original authors. If any infringement is found, please contact us for removal.
