What signals does the market detect as domestic semiconductor equipment manufacturers showcase core process new products one after another at SEMICON China 2026? Check out the latest institutional analysis.
On April 1, over RMB 7 billion of main capital flooded into the electronics sector, with the semiconductor equipment segment staging a full-scale rally and igniting bullish market sentiment. On the news front, SEMICON China 2026, the world’s premier semiconductor exhibition, recently concluded. Domestic equipment vendors unveiled a slew of new products at the show, sending a clear signal to the market: driven jointly by the AI boom and localization drive, the semiconductor industrial chain is entering a critical window for development.
In the short term, the flood of new products released by domestic equipment makers at the exhibition has directly boosted market confidence. Leading manufacturers including Naura Technology and AMEC
displayed cutting-edge achievements in etching, thin-film deposition and advanced packaging, including critical equipment tailored for advanced processes of 5nm and below as well as HBM production. The debut of these new offerings not only validates the technical prowess of domestic players, but also means domestic equipment is poised to accelerate customer verification and mass deployment.
From a long-term perspective, the semiconductor equipment sector’s rally rests on solid industrial transmission logic. For one thing, demand for AI computing power is shifting from model training to inference applications, which impose stricter requirements on low latency and high bandwidth, directly lifting demand for high-performance computing chips
Manufacturing such chips and memory relies on wafer fab capacity expansion. SEMI data indicates China’s global wafer capacity share will rise from 20% to 32% by 2030, with numerous new fabs set to break ground in the coming years. Fab construction requires procurement of a full lineup of semiconductor gear including etchers, thin-film deposition systems and cleaning equipment, unlocking massive incremental market space for domestic equipment suppliers.
On the other hand, as process miniaturization approaches physical limits,
advanced packaging has become the key to sustaining chip performance gains. HBM relies on TSV through-silicon vias and stacked packaging, while AI chips demand 2.5D/3D packaging — both require support from hybrid bonding equipment, electroplating gear,
and other advanced packaging apparatus. This implies that beyond traditional front-end wafer fabrication tools, back-end packaging and testing equipment also faces revaluation upside.
In terms of investment themes, institutions recommend focusing on the following three main lines:
First, equipment manufacturers benefiting from platform-based layout or accelerated technological and product innovation,
including AMEC, Naura Technology, Hwatsing Technology, Micro-Tech, KLA-Tencor (China), JCET Test, Yitang Co., ACM Research and others.
Second, material vendors poised to gain from price hikes and product expansion, such as Jiangfeng Electronics, Dragon Head Co., Ansen Co., Xingfu Electronics, Shenggong Co., Shanghai Sinyang, Luwei Optoelectronics, Tsinghua Mask, Longtu Photomask, Anji Microelectronics, Guanggang Gas, etc.
Third, component suppliers riding the localization wave of semiconductor spare parts, e.g., Fortrend Precision, Xianfeng Electrical, Newlake Material, Zhengfan Technology, Yingjie Electric, Kema Tech, Xianfeng Precision and more.
