Semiconductor stocks rose against the market. As of the time of publication, Baker Micro (02149) rose by 3%, Shanghai Fudan (01385) rose by 2.37%, Semiconductor Manufacturing International Corporation (00981) rose by 1.25%, and Hua Hong Semi (01347) rose by 0.85%.
On the news front, CITIC Sec stated that the domestication of equipment is expected to continue to accelerate as the United States intends to exercise long-arm jurisdiction over Japanese and Dutch companies. According to a report on July 17, the US intends to exercise long-arm jurisdiction over Japanese and Dutch companies, restricting their provision of advanced semiconductor technologies to China. Japan and the Netherlands hold a leading or advantageous position in equipment areas such as lithography, coating, exposure, etching, thin film deposition, furnace tubes, and inspection. ASML Holding (ASML) released its Q2 2024 quarterly report, and the Chinese Mainland has become ASML's largest source of revenue for four consecutive quarters. Continuous purchase of lithography machines, the future demand for domestic production expansion is expected to remain healthy, while under external constraints, the localization rate of semiconductor equipment is expected to increase rapidly. The bank remains bullish on the high-speed growth of orders for domestic semiconductor equipment companies in recent years.