1、 Industry exhibitions and technological breakthroughs

SEMICON China 2025 Exhibition

The world's largest semiconductor exhibition was held in Shanghai on March 26th, focusing on the trend of AI driven industries, attracting 1400 exhibitors and 5000 booths. The exhibition highlighted advanced packaging, storage chip, and AI chip technologies, emphasizing open collaboration to address global supply chain challenges.

TSMC 2nm Process Mass Production

TSMC announced that it will accept 2nm process orders starting from April 1st, with plans to achieve monthly production of 50000 wafers by the end of the year. Apple will become the first customer (for the 2026 iPhone 18 series). This process adopts GAAFET structure, marking a breakthrough from FinFET to a new architecture.

Storage chip prices rebound

NAND： Manufacturers such as Micron, SK Hynix, and Samsung have increased their prices by 10% -15% since April, and domestic storage brands have followed suit. Production reduction measures and demand for AI servers are driving market recovery.

DRAM: The demand for high bandwidth memory (HBM) has surged, and SK Hynix expects HBM sales to account for over 50% by 2025, with the market expected to grow 8.8 times throughout the year.

2、 Domestic substitution and project investment

Localization of Semiconductor Equipment and Materials

Zhongwei Company: Investing 3 billion yuan to build its South China headquarters in Guangzhou, focusing on large flat panel display devices and emerging fields, with an expected annual output value of over 1 billion yuan.

Xinmei Materials: The polarizing film project in Hefei has started construction with a total investment of 4.5 billion yuan, breaking the dependence on imports and filling the gap in key materials in China.

Domestic EDA tools: Companies such as Huada Jiutian are accelerating their breakthroughs, but 78% of the global market share is still monopolized by Synopsys, Cadence, and others.

Progress in automotive grade and AI chips

Xinqing Technology: Released 7nm autonomous driving chip "Xingchen No.1", headquartered in Nanjing, with a total investment of 3 billion yuan.

Zhuhai Haoze: The first storage and computing integrated AI chip VVT300 has been successfully taped out, with a computing power efficiency ratio of 20TOPS/W and a power consumption reduction of 40%.

3、 Market dynamics and capital trends

Industry mergers and acquisitions are accelerating

Northern Huachuang has become the first case of "A-shares controlling A" by acquiring controlling stake in Xinyuan Micro through equity transfer. In 2024, there were 30 domestic semiconductor mergers and acquisitions, with horizontal integration accounting for over 70%.

Capital expenditure and R&D investment

The capacity utilization rate of SMIC's 12 inch production line has reached 85.6%, and the commissioning of Huahong's new production line paves the way for growth.

Design companies such as Puren Corporation and Juxin Technology saw a year-on-year increase of over 60% in net profit due to the growing demand for AIoT.

4、 Policy and cutting-edge technology

Policy support and countermeasures

The State Council has announced the "Implementation Regulations of the Anti Foreign Sanctions Law" to strengthen the autonomy and controllability of key areas such as semiconductors.

Technology Trends

Advanced Packaging: Driven by AI, panel level packaging (PLP) and optical module integration (CPO) technologies have attracted attention, with hybrid bonding devices (TCB) becoming the core tool.

Photon chip: Lightmatter has released photon interconnect technology and plans to mass produce Chiplets by 2026 to improve the efficiency of AI chips.

5、 Recent Important Event Preview

NEPCON China 2025 (April 22-24, Shanghai): Focusing on AI, robotics, and low altitude economy, showcasing the full industry chain technology of electronic manufacturing.

CITE 2025 (April 9-11, Shenzhen): Covering more than 30 themes such as smart terminals, new energy, semiconductors, etc., Huawei, Zhaoyi Innovation and other companies participated in the exhibition.