Huatai Securities: Improved supply and demand may accelerate the prosperity of electronic gases

Huatai Securities pointed out that electronic gases are key raw materials for chips, second only to wafers in the manufacturing cost of wafers. With the development of chips towards new storage technologies, advanced processes, and advanced packaging, TECHCET forecasts that the global electronic gas market size is expected to grow by +8% year-on-year to $6.8 billion by 2026. Huatai Securities believes that as domestic storage and wafer manufacturers expand production, and with the limited supply of gases such as helium due to geopolitical conflicts in the Middle East, the prosperity of China’s electronic gas industry is expected to accelerate by 2026. In 2024, the market share of listed companies in China’s electronic gas sector is expected to account for 40% of the domestic market size. With the increasing requirements for self-sufficiency and the catalysis of anti-dumping events, the localization rate is expected to improve, and leading domestic electronic gas companies are likely to benefit significantly.