CITIC Construction Investment: Focus on the overall trend of rising prices and quantities of semiconductor precursors.

CITIC Securities research report stated that precursor products benefit from downstream capacity expansion in the large cycle, with strong certainty of high performance growth. Downstream wafer fabs like Hynix are planning to double their wafer production capacity in the next five years, and Changxin also has expansion plans to nearly double their capacity by 2030. Based on the critical role of precursor products in the manufacturing process and the increasing micro/ high-end nature of the entire chip manufacturing process, CITIC Securities believes that industry-leading companies have a high possibility of bargaining power with downstream customers and a leap in the value volume under the iteration of product categories.