According to Omdia data, driven by strong demand for AI, the Global semiconductor market revenue reached 177.8 billion USD in the third quarter of 2024, with a year-on-year increase of 26% and a quarter-on-quarter increase of 8.5%. Looking ahead for the full year, the semiconductor market revenue is expected to grow by 24% in 2024;

According to Zhitong Finance APP, based on Canalys data, in the third quarter of 2024, spending on cloud infrastructure services in mainland China reached 10.2 billion USD, a year-on-year increase of 11%;

According to Counterpoint data, it is expected that in 2024, the shipment volume of folding screen phones in China will reach 9.1 million units, a year-on-year increase of 2%.

Ping An Securities believes that the current Consumer Electronics market is showing signs of recovery, the process of Semiconductors localization is continuously progressing, and in addition, the computational Industry Chain driven by AI will also continue to benefit. The Semiconductor Industry is currently in a recovery phase, and the rebound in Consumer Electronics will promote a new cycle of growth in Semiconductors.

GTJA pointed out that the Chinese Ministry of Commerce has added 28 US entities to the list, and friction between China and the USA in the fields of Technology and Military Industry continues to intensify. US sanctions against China will accelerate the domestic production of semiconductors, and the importance of advanced processes will increase.

GTJA's Research Reports indicate that the localization of semiconductors is imperative, and the importance of advanced processes is increasing. Currently, advanced processes are one of the bottlenecks for high-end chips in China, with 7nm and below process technologies still lagging behind international advanced levels. Semiconductor Manufacturing International Corporation, as the most advanced, largest, and most comprehensive professional wafer foundry in mainland China, has a leading layout in advanced process production lines and is expected to benefit greatly from independent control, warranting a recommendation.

Domestic Semiconductor-related Hong Kong stocks:

HUA HONG SEMI (01347), Semiconductor Manufacturing International Corporation (00981), SHANGHAI FUDAN (01385), TIMES ELECTRIC (03898), etc.