CLSA: China's semiconductor demand momentum continues; wafer foundries continue to expand capacity.

CLSA released a research report stating that at the recently held 33rd Investor Forum, investors and companies believed that overall demand momentum for China's wafer foundries, semiconductor equipment, and AI computing chips remains solid, with local wafer foundries continuing to expand capacity. Among them, Hua Hong Grace Semiconductor (01347) expects average wafer prices to rise 10% to 15% by the end of this year, with further price increases next year. CLSA cited semiconductor equipment makers Advanced Micro-Fabrication Equipment Inc. China (688012.SH) and Piotech Inc. (688072.SH) as saying they hold a positive view on order growth and have taken various measures to alleviate upstream component supply constraints. On the domestic silicon-based front, BIREN TECH (06082) raised its 2027 revenue guidance, with new GPU products planned for commercial launch by the end of this year; Moore Threads (688795.SH) is also expanding commercialization with the support of JD.com's (09618) 100,000-card domestic computing cluster. CLSA currently rates both Hua Hong Grace Semiconductor and BIREN TECH as "Outperform."