Recently, Debon Securities released a research report suggesting that the semiconductor industry might have reached its bottom and is now entering a new cycle. Although the semiconductor industry index is still more than 60% down from its peak five years ago, fueled by China's technological innovation and demand for self-reliance, the growth potential of the semiconductor sector remains vast. Data shows that as of October 8, the Shenwan Semiconductor Industry Index has risen by 57.6% since September 23, outperforming the CSI 300 Index.
The report specifically points out that there is a significant gap in domestic semiconductor production capacity, and external restrictions have accelerated the domestication process, especially in fields such as advanced manufacturing, AI chips, and automotive chips. Debon Securities believes this will provide long-term growth impetus for China's semiconductor industry. Moreover, with the gradual destocking of the market and moderate recovery in demand, there are clear signs of cyclical reversal in the semiconductor industry.
In the future, technological innovation will become the largest driving force for the semiconductor market growth, particularly with the rapid development of AI and electric vehicle intelligence. Debon Securities suggests that AI chips, memory chips, and power semiconductors are worth special attention. Furthermore, as autonomous driving and electrification progress, the demand for automotive semiconductors will continue to show a growth trend. Debon Securities advises investors to closely observe related companies, especially leading enterprises in wafer foundry, packaging and testing, and equipment materials.
