Market Review: The electronic sector's weekly change was -4.15% (20/31), with a 10-year PE percentile of 73.00%.
(1) Industry Comparison: The Shenwan Electronic Industry Index fell by 4.15%, while the CSI 300 dropped by 3.29% during the same period. The electronic industry ranked 20 out of 31 in terms of weekly change. (2) Sub-sectors of the electronic sector: The consumer electronics sub-sector had the lowest decline in the Shenwan electronic secondary industry, with a range change of -2.01%; the optical and optoelectronic sub-sector had the weakest decline, with a range change of -5.54%. (3) Electronic Industry Valuation: The PE of the CSI 300 index is 12.61 times, with a 10-year PE percentile of 53.00%; the PE of the electronic index is 54.48 times, with a 10-year PE percentile of 73.00%.
Taiwan Semiconductor halts supply of 7nm chips: Mainland China's chip industry faces a turning point.
According to Reuters, the U.S. Department of Commerce has sent a letter to Taiwan Semiconductor, requesting it to stop supplying AI chips with a 7nm process or more advanced to customers in mainland China starting from November 11. So far, Taiwan Semiconductor has sent formal email notifications to all AI chip customers in mainland China, announcing that it will suspend the supply of all chips with a 7nm process or below to AI/GPU customers in mainland China starting from November 11. The technological blockade has put immense pressure on China's chip industry, but the semiconductor industry in China is accelerating its development, not only maintaining rapid growth in scale but also achieving a leap in quality, significantly improving the level of localization. China's chip industry is rapidly catching up with international frontiers and is gradually reshaping the global semiconductor market landscape. (Source: Insight Research Report)
2024 Double Eleven Battle Report Released: Smartphone Sales Increased by 26% Year-on-Year.
According to estimates from TechInsights' mobile team, during China's largest online shopping festival &#34;Double Eleven&#34; in 2024, smartphone sales rebounded by 26% year-on-year, reaching 9.5 million units, mainly due to the extended sales period. Sales growth lagged behind sales volume but remained in double digits, influenced by the market's polarization trend, with the average selling price (ASP) declining year-on-year. In terms of manufacturer performance, Apple still dominates the high-end market (above 6,000 RMB, or above 828 USD). Xiaomi is narrowing the gap with Apple, driven by growth in the entry-level to mid-range market. In terms of sales volume, vivo surpassed Honor to rank third. In terms of sales revenue, Huawei maintained third place, with the highest ASP among Chinese manufacturers. (Source: Techinsights)

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Taiwan Semiconductor has stopped supplying 7nm AI chips to mainland China, marking a turning point for the mainland chip industry. 
Smartphone market: Apple still dominates the high-end market, while Xiaomi is narrowing the gap with Apple in the entry-level to mid-range market

- The electronic sector experienced a decline of 4.15% this week, ranking 20 out of 31 in performance compared to the broader market.  
- TSMC has halted the supply of 7nm AI chips to mainland China, significantly impacting the local semiconductor industry, which is rapidly advancing in both scale and quality.  
- During the 2024 Double Eleven shopping festival, smartphone sales in China increased by 26% year-on-year, with Apple leading the high-end market while Xiaomi gained ground in the entry to mid-range segments.  

Taiwan Semiconductor halts supply of 7nm chips, Double Eleven smartphone sales increase by 26% year-on-year