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Huawei and Xiaomi unveiled their self‑developed flagship chips on the evening of September 7. Huawei launched the Kirin 9050 Pro, the world’s first flagship chip implementing the “Tao’s Law” with logic‑folding (3D monolithic integration) technology. Xiaomi released the 3‑nm Xuanjie O3 (housing 24 billion transistors, the first chip to top 5.6 million points on AnTuTu). It debuts on the Xiaomi 18 Fold. Xiaomi also showcased the 6‑nm WoW 3D wafer‑stacked Xuanjie O100 and Xuanjie D100, China’s first 3‑nm intelligent‑driving chip.
Goldman Sachs substantially raised its optical module market forecasts. The market is projected to reach approximately USD 67.7 billion in 2026, USD 131.4 billion in 2027 and USD 148.5 billion in 2028, marking upward revisions of 33% / 81% / 115% versus prior estimates. On September 7, AI‑hardware stocks surged across the A‑share market; the optical module index rose more than 7% (over 15% in Hong Kong). Innolux jumped over 10%, with a single‑day trading turnover of RMB 37.5 billion.
At its September 7 earnings briefing, CXMT addressed market rumours regarding Apple chip qualification. The company stated its products are competitive against leading global players. HBM development follows the defined roadmap with rising revenue contributions from server‑grade memory, while qualification work for domestic DUV lithography machines moves forward. Counterpoint data shows its global DRAM revenue share climbed to 10% in Q2, ranking fourth worldwide.
The MIIT issued the 14th Five‑Year Plan for the Development of the Information and Communications Industry. By 2030, cumulative investment in information infrastructure will hit RMB 3.8 trillion, and intelligent computing capacity will reach 9,800 EFLOPS. The plan mandates deployment of 400G‑and‑above high‑speed transmission gear and wider adoption of 100G optical‑network equipment, benefiting the full industrial chain of optical communications and computing‑power infrastructure.
In-depth Analysis
Optical Communication / Optical Chips：Goldman Sachs upgraded its forecasts not merely on rising AI server shipments, but on the shift of server architectures toward high‑speed networking and higher optical‑module consumption per GPU/ASIC, driving rapid demand growth for 800 G, 1.6 T and even 3.2 T products. On September 7, optical‑module, CPO and PCB stocks led the market rally. Shenzhen Huadian and Accelink closed at the daily limit; Yuanjie Technology surged more than 14% and Cambridge Technology hit the cap. Among the 82 listed companies in the CPO sector, 52 reported year‑on‑year net‑profit growth in their interim results, marking the earnings‑delivery phase for the booming AI computing‑power cycle. The MIIT’s 15th Five‑Year Plan mandates deployment of 400 G‑and‑above transmission and wider roll‑out of 100 G optical networks, adding policy‑driven support for optical‑communication demand. The Jiwei Silicon Photonics Industry Summit and the IICIE Advanced Packaging Forum will be held on September 10, where investors may monitor fresh order and yield updates across the supply chain.
Advanced Packaging & Testing：Xiaomi’s Xuanjie O100 is the world’s first 6‑nm 3D wafer‑stacked chip. Built on Wafer‑on‑Wafer advanced packaging and hybrid bonding technology, it forms 2.58 million high‑speed interconnect channels. A prototype featuring dual‑chip collaborative computing with the Xuanjie O3 has been demonstrated. Domestic 3D packaging is evolving from sample‑level development toward system‑level implementation, benefiting hybrid‑bonding equipment and packaging‑and‑testing players. On upstream materials, recent institutional analysis points to tightening ABF‑film supply and a cumulative price hike of over 100% for FR‑4 copper‑clad laminates. The tight supply‑demand balance for substrates and base materials persists (Unimicron’s September 3 comment on “extremely strained capacity” was previously noted). No material new announcements emerged today.
SiC / Power Semiconductors: No major updates today. No significant fresh releases or pricing signals over the past two trading sessions. Previously reported catalysts remain on the radar: Taiwanese power‑device makers preparing a third round of price increases (10%‑15% for non‑contract products starting in October) and ADI’s second full‑product price rise effective September 13. Our medium‑term view remains unchanged on recovering automotive‑grade and industrial demand together with price‑hike transmission down the value chain.
Storage & Compute Chips: CXMT took centre stage. Beyond addressing Apple‑related cooperation rumours and its HBM roadmap, the company confirmed robust server‑market appetite with steadily rising revenue contribution from server‑grade memory in the first half of the year. It develops and qualifies domestic equipment including home‑grown lithography machines to foster industrial‑chain collaboration. On the capital market side, Longsys’ Hong Kong IPO was 40.32‑times over‑subscribed at an offer price of HKD 236, reflecting strong fundraising momentum across the memory sector. Per TrendForce, global DRAM revenue reached USD 154.73 billion in Q2, rising 59.5% quarter‑on‑quarter, as capacity expansion still lags demand growth. Investors should watch lock‑up expiry pressure on newly‑listed chip names: 25.77 million restricted shares of Moore Threads became tradable on September 7, triggering a 20‑percent daily drop and pushing its market cap below RMB 2 trillion.
Equipment & Materials: A new Huawei research paper on “Tao’s Law” shows that the 2026‑generation Kirin chip delivers a 55% transistor‑density uplift and substantially lower power consumption at equivalent performance. The shift from planar to monolithic 3D integration increases process complexity, which broker‑house analysts interpret as a positive driver for semiconductor‑equipment demand. On September 7, the CSI Semiconductor Materials & Equipment Index climbed 4%, with Huaxingyuanchuang surging the 20‑percent daily limit. CXMT confirmed ongoing qualification of domestic DUV lithography tools. On the materials front, Nanda Optoelectronics announced a new production line with an annual capacity of 70 tons for KrF photoresist.
Wafer Fabrication: Institutional estimates project that TSMC’s 3‑nm revenue will exceed TWD 400 billion for the first time in Q3, accounting for more than 30% of total sales. In the second half of the year, revenue from 3‑nm processes is poised to surpass 5‑nm for the first time, sustaining prosperity for leading‑edge nodes. TSMC will publish its August revenue on September 10, serving as a key verification milestone.
Policy & Macro Environment: The MIIT’s 15th Five‑Year Plan for the information‑communications sector has been released, setting intelligent computing power and high‑speed optical networks as clear policy priorities. US CPI and PPI readings are due this week. CME‑implied odds of a September Fed rate hike have climbed to 60.4%, posing potential volatility risks for high‑valuation technology names. Huawei and Xiaomi have launched their new flagship products, followed by Apple’s event on September 10; foldable‑screen devices and self‑developed chips stand at the core of end‑market competition.
Daily Investment Tips
1. Optical communication sector: The upward forecast revision from Goldman Sachs, policy tailwinds and order fulfilment for 1.6T products form medium‑term support. Nevertheless, trading has turned crowded following the sharp single‑day rally on September 7 (Innolux recorded a turnover of RMB 37.5 billion). Near‑term high‑level volatility should be monitored. Over the medium run, keep track of capital expenditure plans by North American CSPs and the volume ramp‑up timeline for 1.6T and 3.2T optical modules.
2. Domestic computing chips and 3D packaging: Huawei’s 3D monolithic integration under “Tao’s Law” and Xiaomi’s WoW 3D stacking mark the transition of domestic advanced packaging from R&D to formal product definition. Equipment vendors for hybrid bonding and temporary bonding, alongside packaging and testing houses, are set to sustain benefits. Meanwhile, watch for valuation pressure stemming from share lock‑up expirations on newly‑listed chip stocks, and track the sector ripple effect driven by the Xuanjie D100 (3 nm automotive intelligent‑driving chip) within the high‑performance automotive‑grade computing track.
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