On July 28, CITIC Securities issued a research report emphasizing the substantial rise in demand for advanced wafer fab capacity during the AI era. Additionally, the report notes that US sanctions have fueled a resurgence of domestic demand for advanced fabs. While domestic manufacturers are diligently working to catch up, they continue to grapple with challenges related to equipment supply, yield enhancement, and customer expansion. The report highlights two key segments for investors to focus on: advanced fab foundries and domestic semiconductor equipment.

From a supply standpoint, mainland China's advanced fab foundries are spearheading global capacity expansion. It is advisable to keep an eye on companies capable of applying semiconductor equipment and components to advanced fabs and foundry segments, as these firms are poised to secure significant order breakthroughs in the near future.

On the demand side, advanced fabs may remain in short supply, whereas mature fabs exhibit a relatively balanced supply-demand equilibrium. Consequently, investors are encouraged to prioritize domestically scarce advanced fabs and leading mature fabs that can leverage cost efficiency advantages to capture a larger market share.