Daily Semiconductor Investment Insight | October 12, 2026

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Yuexin Semiconductor (301660.SZ) will be listed on the ChiNext Board on October 13, at an IPO offer price of RMB 12.01 per share. The company plans to issue 513 million shares, raising approximately RMB 6.16 billion, adding another listed player in China’s specialty-process / analog wafer foundry space.

NVIDIA is reportedly in preliminary talks with open-weight model developer Reflection AI regarding a potential acquisition or additional capital injection, as the firm continues to beef up vertical integration across “models + chips”.

South Korean stock trading volume has plunged 70% from its late-May peak. Foreign investors are accelerating divestment from Samsung Electronics and SK Hynix. The “easy profits” from memory stocks have largely been locked in, elevating risks from crowded AI trades and capital rebalancing.

Jwei.com in-depth report: Alibaba Pingtouge’s Zhenwu V900 training-and-inference integrated AI chip (3x the performance of Zhenwu M890 on a single die, 216GB memory capacity, 1200GB/s die-to-die interconnect bandwidth) will be advanced to mass production in Q1 2027. The company also unveiled its roadmap for Yitian 720/730 server CPUs for the first time. Domestic computing capability is moving toward full-stack R&D covering “compute / memory / interconnect”.

Upstream equipment & supply chain: PvdT Technologies secured 29 new equipment orders within the year, of which 14 are semiconductor tools targeting specialty process and third-generation semiconductor production lines. Industrial 富联 (Foxconn Industrial Internet) and Luxshare Precision were named in a Section 337 investigation initiated by the US ITC over Vicor’s data center power supply patents.

In-depth Analysis

Optical Communications / Optical Chips: No major updates today. Earlier, Lumentum stated its optical component capacity is fully booked through early 2029, while AAOI noted that demand for 800G/1.6T products will outstrip its production capacity until at least mid-2027; both pieces of news have already been priced in. There is a lack of incremental near-term catalysts.

Advanced Packaging & Testing: Jwei.com’s October 9 in-depth report *Behind the $2 Billion Silicon Interposer Deal: Accelerated Restructuring of the Advanced Packaging Industry* merits review. GlobalFoundries’ Malta, New York fab will supply silicon interposers for TSMC’s CoWoS ecosystem under a 5-year contract valued at roughly $2 billion, with mass production ramping up in H1 2028. This makes GlobalFoundries the first U.S.-based supplier of silicon interposers for advanced packaging.

Counterpoint estimates the CoWoS supply-demand gap will reach around 20% in 2026 before narrowing to roughly 10% in 2027. TSMC is expanding its monthly internal capacity to 185,000 wafers, representing a capacity hike of over 60% by 2027. The global advanced packaging market will grow from $44.3 billion in 2022 to $78.6 billion in 2028 (CAGR ~10%). China’s domestic 3D AOI inspection equipment market will hit RMB 5.38 billion in 2026, up 27.2% year-on-year.

Fundamentally, packaging is evolving from a back-end manufacturing step into a core value-sharing segment. No new developments for ABF films and IC substrates today.

SiC / Power Semiconductors: No material updates today. The latest incremental news remains the $1.5 billion conditional loan commitment Wolfspeed secured from the U.S. Department of Defense on October 8, plus progress on automotive-grade SiC from Hantiancheng and Xinyueneng. No fresh catalysts emerged this week.

Memory & Compute Chips: Market sentiment has cooled sharply in South Korea. South Korean stock trading volume has plummeted 70% from its late-May peak, with foreign investors and local retail investors pulling out simultaneously. Investors worry that the “easy gains” from memory stocks centered on Samsung Electronics and SK Hynix have already been locked in (Oct 11).

In addition, Samsung notified its suppliers to cut mobile phone output amid memory price hikes, and Apple has trimmed component production for the iPhone 18 Pro. A negative feedback loop between end-market demand and memory price increases is starting to take shape. Investors should guard against sentiment overheating amid expectations that memory capacity will be fully sold out by 2027.

Equipment & Materials: PvdT Technologies disclosed that it has secured 29 new equipment orders since March 24, including 14 semiconductor tools targeting high-end specialty processes and third-generation semiconductor production lines (revenue will only be recognized after customer qualification). Yiyan Silicon plans to acquire equity stakes in two target companies via share issuance plus cash to achieve full ownership, constituting a major asset restructuring.

Wafer Foundry: Yuexin Semiconductor will list on the ChiNext Board on October 13, serving as a benchmark 12-inch analog & specialty process foundry. Huahong Grace Phase III Semiconductor Co., Ltd. increased its registered capital to $4.17 billion, with new shareholders including Huahong Grace, Wuxi Xihong Guoxin Phase II, and policy financial instruments under China Development Bank. Capacity expansion for mature and specialty processes continues to move forward.

Policy / Macro Environment: The coming week will see intensive data and earnings releases: China’s September CPI/PPI and U.S. September CPI will be published on October 14. ASML and TSMC will release earnings on October 15–16, with markets focusing on whether AI infrastructure investment momentum can sustain, as well as capacity guidance for CoWoS and advanced process nodes. Apple will host its Welcome Home event on October 13. Pre-orders for the iPhone Duo will open on October 16, with official sales kicking off on October 23, which is likely to drive order momentum across the supply chain.

Daily Investment Tips

1.The core thesis for AI hardware is shifting from single-driven “process scaling” to a dual-driven model of “process technology + advanced packaging”. High-barrier segments including packaging, interposers and inspection equipment demonstrate stronger certainty. Nevertheless, domestic suppliers have yet to deliver incremental supply breakthroughs in ABF films and silicon interposers; related names are mainly driven by thematic upside.

2. On the risk side, the sharp plunge in South Korean stock turnover and foreign capital outflows signal risks from crowded global memory/AI trades and capital rebalancing. Production cuts by end-device players (Apple, Samsung) triggered by memory price hikes may create negative feedback on memory demand in 2027. Disciplined position management is recommended for high-valued memory and compute-chain holdings.

Jumbo Sheen  Fund

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