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SK Hynix will hold a groundbreaking ceremony on August 27 for its advanced‑packaging plant in West Lafayette, Indiana, USA. This marks its first production facility in the United States, with mass production of next‑generation HBM targeted for H2 2028, accelerating the global deployment of its advanced‑packaging capacity.
Innolight plans to acquire a 10.47 % stake in Zhongshi Technology for RMB 1.747 billion to gain access to thermal‑conductive and EMI‑shielding materials, proactively positioning itself to address heat‑dissipation demands driven by rising power‑density requirements for 800G/1.6T optical modules.
South Korea’s KOSPI Index has rebounded nearly 23 % from its July 30 low and re‑entered a technical bull market. Samsung Electronics and SK Hynix surged more than 5 % and 7 % respectively in a single session, as the memory super‑cycle continues to materialize.
US optical‑communication earnings showed mixed results: better‑than‑expected guidance from Lumentum and Coherent boosted CPO‑related themes (TFC Communication rose nearly 10 %). Nevertheless, the sector underwent a broad‑based correction on August 14, with Coherent down roughly 8 % and Applied Optoelectronics falling over 5 %.
Zhenbao Technology intends to invest RMB 520 million in a semiconductor‑components base in Wuhan Optics Valley. The project covers SiC components, high‑purity silicon precision parts and aluminum‑nitride ceramic materials, representing another milestone in the localization of front‑end consumables.
In-depth Analysis
Optical Communications / Optical Chips: Earnings from leading US optical‑communication firms validate robust industry prosperity. Lumentum projects Q1 FY2027 net revenue of USD 1.23‑1.28 billion (market consensus: USD 1.15 billion), while Coherent set its next‑quarter revenue‑guidance midpoint at USD 2.3 billion (market consensus: USD 2.14 billion). On August 13, the CPO concept trended upward amid volatility on the A‑share market, with TFC Communication climbing nearly 10 %. Innolight will acquire a 10.47 % equity stake in Zhongshi Technology for RMB 1.747 billion to secure thermal‑conductive materials for high‑power heat‑dissipation requirements. Luxshare‑Precision generated over RMB 600 million in revenue from high‑speed optical‑module PCBs and nearly RMB 1 billion from AI‑server PCBs in H1, with segment gross margin reaching 37.42 %. Lam Research plans to hire around 200 additional employees in Singapore, focusing on silicon photonics, CPO and panel‑level packaging. It should be noted that the US optical‑communication sector corrected on August 14 (Coherent down approx. 8 %), showing pressure from profit‑taking on prior short‑term gains.
Advanced Packaging: SK Hynix will hold the groundbreaking ceremony for its advanced‑packaging plant in West Lafayette, Indiana, USA on August 27. This is its first‑ever production facility in the United States, targeting mass production of next‑generation HBM in H2 2028 and creating more than 1,000 jobs. Omdia revised upward its 2026 global‑semiconductor‑market growth forecast to 94.1 % year‑on‑year, noting capacity bottlenecks for HBM, advanced packaging and advanced process nodes will persist at least through 2027. Tongling’s 15th‑Five‑Year Plan proposes breakthroughs in 8N ultra‑high‑purity copper manufacturing, and the development of materials such as high‑purity sputtering targets and nano‑twin copper foils for advanced‑packaging applications.
SiC / Third‑Generation Semiconductors: Zhenbao Technology plans to invest RMB 520 million in a three‑year‑construction‑cycle semiconductor‑components R&D‑and‑manufacturing base. The project focuses on three product lines: SiC components, high‑purity‑silicon precision parts and aluminum‑nitride ceramic materials, supporting front‑end manufacturing processes including chip etching and thin‑film deposition to serve wafer fabs in Central China. No major new GaN‑related updates emerged; the industry remains in a gradual phase of rising data‑center penetration.
Memory & Computing Chips: South Korea’s KOSPI Index rebounded nearly 23 % from its July 30 low and re‑entered a technical bull market, led by the two major memory giants (Samsung Electronics +5 %, SK Hynix +7 %). US‑listed memory names maintained strong momentum: SanDisk surged more than 13 % on August 14, while Western Digital and SK Hynix rose over 7 %. Price‑hike transmission accelerated on the consumer side. Back‑to‑school “three‑piece‑set” devices generally saw price increases starting at RMB 1,000, with some high‑end configurations rising by nearly 50 %. CXMT has become a heavy‑weight holding in overseas memory‑themed ETFs as foreign investors ramp up exposure to China’s hard‑tech sector. On the AI‑chip front, Cerebras posted Q2 revenue of USD 180.1 million, missing expectations and tumbling 17 % in after‑hours trading. Alibaba open‑sourced Qwen3.8‑2.4T‑A95B and completed adaptation for nine domestic AI chips.
Equipment & Materials: Sinlion Material plans to acquire a 73.48 % stake in Bangci Electronics for RMB 242 million (multi‑layer piezoelectric ceramics for semiconductor equipment and satellite laser communications). E Fund Semiconductor‑Equipment ETF (159558) recorded net subscriptions of 393 million shares on August 13, a clear sign of contrarian capital inflows. US‑listed equipment stocks Applied Materials, Lam Research and KLA all gained 3‑4 %.
Policy / Macro Backdrop: US July CPI came in at 3.4 % year‑on‑year, in line with expectations, easing market concerns over a September rate hike. The United States International Trade Commission (USITC) launched a Section 337 investigation against Samsung’s equipment amid patent claims filed by Maxell. Foreign investors are increasing allocations to Chinese hard‑tech assets, with CXMT among top holdings of overseas memory‑focused ETFs.
Daily Investment Tips
1. The optical‑communication sector is in a rotating cycle of “earnings beats‑price realization‑short‑term correction”. Robust guidance from Lumentum and Coherent underpins industrial prosperity, yet the sector’s pull‑back on August 14 signals volatility risks at elevated valuations. It is recommended to focus on structural opportunities in thermal‑management materials (Innolight’s equity investment in Zhongshi Technology) and localized upstream optical‑chip production (indium phosphide).
2. The memory super‑cycle is spilling over into advanced packaging and materials segments. SK Hynix’s groundbreaking for its US packaging plant, Omdia’s upward market‑forecast revision, together with price‑hike pass‑through on the consumer side, underpin high certainty for prosperity across memory and packaging‑and‑testing industrial chains. Meanwhile, watch for profit‑taking following the sharp KOSPI rebound and expectations of moderating memory price increases.
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