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The prosperity of the memory chip sector is further validated by fresh data. Counterpoint reports that global DRAM revenue surged 385% year‑on‑year and 57% quarter‑on‑quarter in Q2 2026. CFM figures put the global DRAM market size at USD 147.024 billion in Q2, rising 55.9% quarter‑on‑quarter to a record high. South Korea’s semiconductor exports from January to August reached USD 281.2 billion, jumping 169.6% year‑on‑year and accounting for 40.6% of its total exports.
A major domestic computing‑power contract has been finalised. According to Bloomberg and Jiwei, DeepSeek has locked in a gigawatt‑scale data‑centre project in Ulanqab, Inner Mongolia. It plans to deploy 160,000 Huawei Ascend 950DT chips to build one of China’s largest domestic AI inference computing clusters.
This week marks a packed calendar of flagship events. Huawei (Mate XT 2) and Xiaomi will unveil their autumn flagship products tonight. Apple will host its biggest launch event of the year in the early hours of 10 September, with multiple new devices and rising market expectations for next‑generation M‑series chips. TSMC will release its August revenue results on 10 September, while the 2026 China Computing Power Conference will run from 11 to 13 September in Langfang.
Profit quality in the power‑semiconductor sector draws market attention. Jiwei’s analysis of Silan Microelectronics’ interim report shows revenue of RMB 7.262 billion (+14.62% YoY) and net profit attributable to parent shareholders of RMB 516 million (+94.84% YoY). Its non‑recurring‑gain‑adjusted net profit stands at only RMB 271 million (+0.67% YoY). The SiC business remains loss‑making across the board; progress on its fund‑raised 12‑inch project is 0%, with inventory valued at RMB 4.162 billion.
Capital flows and macro outlook: Total market ETF inflows exceeded RMB 33 billion last week, with investors adding positions in semiconductor and STAR 50 products. US non‑farm payrolls added 162,000 jobs in August, well above consensus forecasts. Traders have raised bets on a Fed rate hike in September. WTI crude oil hovers around USD 92 per barrel, and tensions involving Iran introduce further market volatility.
In-depth Analysis
Optical Communication / Optical Chips：Changguang Huaxin reported H1 revenue of RMB 391 million (+82.67%) and net profit attributable to parent shareholders of RMB 30.34 million (+238.04%). Rapid volume growth in its optical‑communication business drove gains for semiconductor laser chips (Jiwei Flash Analysis, previously uncovered). Jushi Technology advances validation for connector liquid‑cooled plates and NPO thermal solutions tailored for 1.6T optical modules. The Silicon Photonics Industry Summit in Shenzhen and the IICIE Advanced Packaging Forum will open on September 10, bringing event‑driven catalysts for the CPO / silicon photonics theme. No material supply‑demand shifts emerged across the sector.
Advanced Packaging & Testing：On September 6, Jiwei Consulting released the 2026 Glass Substrate Industry Research Report, focusing on AI‑computing‑driven transformations in packaging materials. Glass‑substrate industrialisation remains in the qualification phase (TSMC CoPoS is scheduled for mass production in 2027‑2028). Unimicron faces an extremely tight ABF substrate capacity situation and continues to secure supplies of Japanese electronic‑grade fibreglass cloth (supply‑demand imbalance persists). JCET’s RMB 6.5 billion private placement is underway; controlling shareholder Panshi Runqi intends to subscribe for a 22.53% stake. No new price‑hike or order announcements emerged over the weekend.
SiC / Power Semiconductors: No fresh major developments today, with the industry landscape unchanged. Silan Microelectronics’ interim results revealed company‑wide losses in its SiC business and delays to its 12‑inch capacity expansion, highlighting profitability delivery as the core challenge amid industry price wars. Peri Power posted a 48.66% year‑on‑year rise in H1 net profit on robust deliveries of IGCT / IGBT devices for ultra‑high‑voltage applications, reflecting structural prosperity for high‑end power components. ADI will implement its second full‑product price increase of 2026 starting September 13, extending the upward pricing cycle for analogue and power chips.
Storage & Compute Chips: The global DRAM market hit an all‑time high in Q2. Foundries have largely sold out their 2027 DRAM / HBM capacity allocations. The consumer‑grade memory segment follows a “lower volume, higher price” trend (DDR5 has climbed roughly 300% so far this year, with full‑year NAND price growth projected at 200%‑250%). End‑device AI and complete‑machine shipments face headwinds, with target shipment volumes for some flagship models cut by 30%‑50%. On the domestic front, investors will monitor capacity ramp‑ups and LPDDR6 adoption timelines following CXMT’s H1 net profit of RMB 77.6 billion.
Equipment & Materials: No major new order wins. Performance diverges across names: Jingsheng posted a 41.72% YoY drop in H1 revenue together with widening losses (disrupted revenue recognition for orders); Longtu Mask saw net profit fall 51.67% (pressured by mature‑process price competition plus depreciation during ramp‑up at its Zhuhai site). SG Technologies plans to acquire the remaining equity stake in Fujian Jinggong for RMB 195 million to strengthen its semiconductor‑grade silicon materials business. Brokerage strategies from CITIC Securities and Zhongtai Securities over the weekend continued to recommend domestic semiconductor equipment, materials and memory‑chain exposures.
Wafer Fabrication: No significant updates today. Market participants await TSMC’s August revenue release due September 10 (its quarterly equipment procurement outlook has been raised to approximately 1.9 times the forecast set last December). The interim‑report‑driven rally for SMIC and Hua Hong has faded; investors are watching for potential inflows from southbound capital after prior consecutive net selling.
Policy & Macro Environment: US August non‑farm payrolls far exceeded market expectations, pricing in roughly 38 basis points of cumulative rate hikes before year‑end. Higher interest rates weigh on growth‑stock valuations. Canada will impose retaliatory tariffs on around 700 categories of US goods starting September 8, keeping spill‑over risks from trade friction alive. Domestically, ten ministries including the MIIT launched Phase II of the National SME Development Fund, targeting early‑stage, small‑cap and deep‑tech ventures. Guangdong’s core AI industry output has surpassed RMB 300 billion. The Ministry of Commerce voiced strong objections to US sanctions against Chinese entities over Iran‑related allegations.
Daily Investment Tips
1. A dense slate of events is scheduled for this week, including Apple’s product launch event, TSMC’s monthly revenue release and the China Computing Power Conference. Market sentiment across the AI computing‑power chain (optical modules, PCBs, memory chips, domestic GPUs) may swing back and forth. Volatility for high‑valuation names is expected to intensify ahead of the Fed’s mid‑September rate‑setting meeting, calling for prudent position‑management timing.
2. The investment thesis for memory chips remains the most compelling, backed by price hikes (foundry capacity fully booked for 2027) and domestic substitution catalysts (the large‑scale Ascend 950DT order plus CXMT’s capacity expansion). Nevertheless, two risks warrant caution: the adverse impact of the “lower‑volume‑higher‑price” dynamic in consumer electronics on end‑side AI device shipments, and profit erosion triggered by price wars in SiC and mature‑node segments. Non‑recurring‑item‑adjusted profitability from interim reports and the delivery progress of capacity expansion serve as core screening metrics for stock selection.
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