Greater China Semis: Sep: IC import/export value +74.7%/+136.0% YoY

Aug–Sep data indicates semiconductor demand remains solid in the China market. IC production volume continued to grow YoY, IC import value rose sharply with import volume up modestly, while IC export value grew strongly and export volume edged up; YTD export value remains robustly above 2024 levels. Electronics sector inventory balance rose and days of inventory stood above the average of recent years. Imports of SPE, semiconductor test equipment and lithography tools also recovered, while major Taiwan-listed semiconductor companies' aggregate revenue grew YoY but slipped slightly MoM. The report attributes the China semis upcycle to generative AI, advanced node, ADAS/AD trends, local supplier share gains and rising capex plans. We continue to prefer stocks with strong company-specific drivers (new product ramp-up, product mix upgrades, share gains) and remain Buy-rated on names such as Hua Hong and AMEC, noting continued equipment bidding by China semis manufacturers.