Shanghai Securities: Mainland China Remains the World's Largest Semiconductor Equipment Market, Micro LED Welcomes New Growth Opportunities

Shanghai Securities released a research report stating that the SEMI report shows that the global semiconductor equipment shipment amount reached $33.07 billion in 25Q2, a year-on-year increase of 24%. Mainland China's sales reached $11.36 billion, a year-on-year decrease of 2% but a month-on-month increase of 11%, maintaining its position as the world's largest semiconductor equipment market with a share of about 34.4%. The listing of benchmark products will gradually drive the production value of the Micro LED chip market, estimated to reach $461 million by 2029. Micro LED is gradually commercializing in various fields, from TVs, smartwatches to automotive displays, each benchmark product representing a technological breakthrough. The industry believes that the electronic semiconductor industry may be experiencing a comprehensive recovery by 2025, with the industry competitive landscape expected to accelerate clearing and restoration, and industry profit cycles and related company profits expected to continue to recover. The firm maintains a "buy" rating on the electronics industry. The main viewpoints of Shanghai Securities are as follows: The global semiconductor equipment shipment amount increased by 24% year-on-year, with mainland China remaining the top market. On September 8th, according to the latest "Global Semiconductor Equipment Market Report" from the Semiconductor Equipment and Materials International (SEMI), the global semiconductor equipment shipment amount reached $33.07 billion in 25Q2, a year-on-year increase of 24%. Driven by advanced logic processes, HBM-related DRAM applications, and increased shipments in the Asian region, sales in 25Q2 increased by 3% month-on-month. Looking at the specific semiconductor equipment sales in each region in 25Q2, mainland China's sales reached $11.36 billion, a year-on-year decrease of 2% but a month-on-month increase of 11%, maintaining its position as the world's largest semiconductor equipment market with a share of about 34.4%. Ajit Manocha, President and CEO of SEMI, stated, "The global semiconductor equipment market in 2024 saw a record $117 billion in sales, with a strong performance in the first half of 2025, surpassing $65 billion in revenue. Chip manufacturers continue to invest in capacity to support advanced logic and storage innovations that drive the AI wave, as well as critical projects to enhance regional supply chain resilience." Benefiting from the listing of benchmark products, the Micro LED market value is expected to rise rapidly. On September 9th, according to TrendForce, the penetration rate of Micro LED in consumer electronic products is accelerating. Following Samsung's launch of a 140-inch Micro LED TV in 2023, Garmin Fenix 8Pro smartwatch in 2025 and Sony Honda Afeela 30-inch automotive display expected to be released by the end of the same year, mark the beginning of Micro LED covering major fields. TrendForce believes that the listing of these benchmark products will gradually drive the production value of the Micro LED chip market, estimated to reach $461 million by 2029. Micro LED is gradually commercializing in various fields, from TVs, smartwatches to automotive displays, with each benchmark product symbolizing a technological breakthrough. With the advantages of high brightness and high contrast, Micro LED has been adopted by some new smart glasses brands and is expected to gradually emerge in near-eye display devices, helping to enhance the overall value of the industry. TrendForce also points out that the high power consumption and high unit price of Micro LED are still a major challenge in the current market, making it difficult to compete with OLED, which has matured technology and cost advantages. However, Micro LED can meet the extreme brightness requirements of sports watches in outdoor environments and has the potential to integrate sensing components, laying the groundwork for future product innovation and differentiation. Investment recommendations Maintain a "buy" rating for the electronics industry. The firm believes that the electronic semiconductor industry may be experiencing a comprehensive recovery by 2025, with the industry competitive landscape expected to accelerate clearing and restoration, and industry profit cycles and related company profits expected to continue to recover. Current recommendations focus on: some oversold stocks in the semiconductor design field with real performance and low PE/PEG ratios, such as AIOT SoC chip companies Shenzhen Bluetrum Technology (688332.SH) and Actions Technology (688049.SH); in the analog chip field, focus on companies like Maxic Technology, Inc. (688458.SH) and Southchip Semiconductor Technology (Shanghai) (688484.SH); in the driver chip field, focus on companies like Fortior Technology (Shenzhen) Co., (688279.SH) and Shanghai New Vision Microelectronics (688593.SH); in the semiconductor key materials field, focus on domestic substitutes for logic, such as electronic material platform companies like Red Avenue New Materials Group (603650.SH), Hubei Dinglong (300054.SZ), Anji Microelectronics Technology (688019.SH); and in the silicon carbide industry chain, focus on SICC Co., Ltd. (688234.SH, 02631). Risk alerts Intensification of Sino-US trade friction, lower-than-expected end demand, and lower-than-expected domestic substitutes.