CITIC Securities: The space for semiconductor equipment components is vast, and domestic substitution is accelerating under overseas restrictions.

The research report from CITIC Securities Investment indicated that the semiconductor equipment components sector is currently in the background of a dual trend of self-sufficiency and controllability. On one hand, driven by AI, the expansion of downstream production capacity is starting a new cycle of prosperity, with a requirement for self-sufficiency and controllability in the entire semiconductor equipment in mainland China. With the increase in the localization rate of equipment, the overall market space for components is opening up. On the other hand, the overall localization rate of key components is relatively low, and the domestic substitution of high-end products is still in its early stages. It is recommended to pay attention to 1) the progress of domestic substitution and breakthrough in categories with low localization rates; 2) the rapid increase in production volume of categories with smooth progress in domestication, which will drive the improvement of listed companies' performance.