CITIC Securities: Bullish on investment opportunities in semiconductor equipment, suggests focusing on leading companies in high elasticity segments.

According to a research report from Citic Securities, TSMC's performance in 2025 set a record, with a significant increase in capital expenditure in 2026, indicating the continued benefits from AI computing power and advanced process technology. Faced with a domestic shortage of millions of advanced wafers, domestic wafer factories are experiencing a boom in expansion, creating a space for the equipment market to release billions of dollars, and the domestic production rate is expected to double. Based on the dual driving force of advanced process technology and domestic substitution, we are optimistic about the investment opportunities in the semiconductor equipment industry, and recommend focusing on leading companies with platform capabilities and high flexibility in the sub-sectors.