Shanxi Securities: Focus on the Localization of Upstream Equipment, Materials, and Components in the Electronics Industry

Shanxi Securities research report points out that benefiting from the growth in demand for generative AI and year-end shipments of consumer electronics, the global semiconductor and related industries will gradually rebound from the fourth quarter of 2023. On the demand side, both the mobile phone and PC markets are expected to recover year-on-year from the fourth quarter of 2023, with global semiconductor sales in January 2024 reaching the highest level since May 2022. On the supply side, downstream inventory is gradually returning to normal levels, and the strong price increase in storage chips driven by AI-related layout demand is benefiting. It is recommended to focus on the localization of upstream equipment, materials, and components in the electronics industry, demand for high-performance chips and advanced packaging driven by AI technology, as well as the recovery of the consumer electronics sector and investment opportunities in the Huawei industrial chain.