CITIC Securities: The global prosperity cycle of semiconductor equipment continues to be confirmed, focus on price increases + going overseas.

Mars Finance News, June 30—CITIC Jianchuan Research states that SEMI has revised up its full-year outlook, and SK hynix’s production capacity in 2034 will triple, further confirming that the global semiconductor industry’s upcycle remains firmly established. On June 11, SEMI released a report, raising its forecast for the growth rate of the 2026 global front-end semiconductor equipment market size from the previous 16.5% to 23.5%, reaching $152.2 billion. In Q1, global semiconductor equipment shipments totaled $36.55 billion, up 14% year over year, setting a new record for a single quarter.

After SK hynix’s plan to double capacity over five years was announced earlier this month, SK Group Chairman Choi Tae-won further revealed in a recent interview that if all construction plans are carried out as expected, hynix’s capacity by 2034 will be three times the current level. The components segment is the direction with the greatest elasticity in this round of market moves. Global semiconductor equipment components are going through a historically rare, industry-wide price increase across the full supply chain. The pricing power in the semiconductor supply chain is structurally shifting from the chip end-product to the equipment and components segments. Component companies are smaller in scale and have a higher ratio of fixed costs, so price increases are directly converted into profit; meanwhile, production line expansion cycles last 12-18 months, resulting in the weakest supply elasticity. Pay attention to the domestic substitution demand and the pricing rationale driven by longer lead times from overseas suppliers such as valve piping, ceramic components, RF power supplies, GAS BOX, and others. (Wide-Angle Observation)