Jinwu Financial News | CITIC Securities said that in a context where Trump's rise to power may increase competition in technology, market concerns are intensifying about a situation where the US restricts mainland Chinese companies from obtaining TSMC's advanced process chip foundry and other stricter controls. For mainland Chinese companies, especially AI chip companies, mainland China's “usable advanced processes” and international advanced manufacturing processes have become two supply chain systems. Domestic related fabs may rely on domestic equipment supply chains to expand production, expand revenue growth space in the long term, and are expected to lead to improved profitability.
In the current complex and changing international environment, it is likely that it will be more difficult for chip companies in mainland China to obtain advanced manufacturing processes in the future. In the long run, the scarcity of advanced processes in domestic fabs will increase, and there is plenty of room for revenue and profit expansion. It is recommended to focus on the core strategic assets of fabs, as well as related equipment and component supply chains, and advanced packaging companies; computing power chips focus on enterprises that are rapidly transforming domestic processes.
