--- title: "Guosheng Securities: The computing power wave drives capacity expansion, CAPEX welcomes a new growth cycle" type: "News" locale: "en" url: "https://longbridge.com/en/news/230018324.md" description: "Guosheng Securities released a research report indicating that the AI wave is driving a significant increase in global computing power demand, and it is expected that capital expenditure in the semiconductor industry will enter a new growth cycle. Clean rooms account for 10%-21% of semiconductor capital expenditure, and demand will continue to grow due to expansion projects. It is recommended to pay attention to companies such as L&K, Bocheng Co., Ltd., Shenghui Integrated, and Shenzhen Sanda A. It is expected that by 2025, Taiwan Semiconductor's AI business will achieve a 40% compound growth rate, and industry investment is expected to reach $185 billion" datetime: "2025-02-28T03:29:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/230018324.md) - [en](https://longbridge.com/en/news/230018324.md) - [zh-HK](https://longbridge.com/zh-HK/news/230018324.md) generator: "portal-rs" --- # Guosheng Securities: The computing power wave drives capacity expansion, CAPEX welcomes a new growth cycle According to the Zhitong Finance APP, Guosheng Securities released a research report stating that the AI wave is driving a sustained high increase in global computing power demand, with high prosperity in investment in chip fields such as GPU and HBM. At the same time, the acceleration of domestic substitution further boosts the expectations for leading companies to expand production, and industry capital expenditure is expected to enter a new growth cycle. Clean rooms account for about 10%-21% of semiconductor capital expenditure, and with the advancement of expansion projects, demand is expected to continue to grow. It is recommended to focus on high-quality L&K (603929.SH), Baicheng Co., Ltd. (601133.SH), Shenghui Integration (603163.SH); Shenzhen Sanda A (000032.SZ). ## The main points of Guosheng Securities are as follows: **Clean rooms are fundamental engineering for advanced manufacturing, with electronic industry applications accounting for over half** Clean rooms provide a dust-free and stable production environment for high-end manufacturing and are widely used in industries such as semiconductors, new displays, and life sciences. In downstream demand, the electronic/medical/pharmaceutical/other fields account for approximately 54%/24%/22%, respectively. Semiconductor production is significantly affected by airborne particles, requiring processes from single crystal silicon wafer manufacturing, IC manufacturing to packaging to be completed in clean rooms, which have high requirements for cleanliness control technology. In recent years, China's clean room industry has grown steadily, with the market size/newly built area in 2021 being approximately 214.6 billion and 35.77 million square meters, with a six-year compound growth rate of 19%/14%, and the unit price steadily increasing to about 6,000 per square meter. **The computing power wave drives a recovery in semiconductor capital expenditure, and clean room construction is on the rise** Benefiting from the development of generative AI, global computing power demand continues to grow, and the market for AI chips such as GPU and ASIC is expanding rapidly. According to TSMC's guidance, the company's AI business is expected to double further on a high base by 2025, with an expected compound growth rate of about 40% over the next five years, which is expected to become the core driving force for growth in the semiconductor market. From the perspective of capacity planning, TSMC's CAPEX guidance for 2025 has been significantly raised by 28%-41%, while leading companies such as SMIC and Hua Hong Semiconductor maintain high CAPEX levels. The three major manufacturers, SK Hynix, Samsung, and Micron, are accelerating the expansion of HBM (the mainstream storage chip for AI servers), and industry capital expenditure is expected to significantly recover, with an expected annual investment of $185 billion, an increase of 11% year-on-year. Benefiting from the advancement of semiconductor expansion projects, the demand for clean room construction is expected to continue to grow, with estimates of global/China semiconductor clean room investment in 2025 being approximately 194.3 billion/58.3 billion, accounting for about 15% of the industry's total capital expenditure. **The process of domestic substitution of chips is accelerating, further boosting expectations for leading companies to expand production** Currently, China is the largest semiconductor market in the world, but it has a high dependence on imports and a pressing need to improve its self-sufficiency rate. In recent years, policies have supported the development of the integrated circuit industry, and the domestic substitution process has significantly accelerated, especially in the field of mature process wafers, where the proportion of self-produced capacity in mainland China has increased to 33%, and is expected to reach 45% by 2027. In January of this year, the United States issued an export ban on AI chips, and currently, NVIDIA occupies nearly 90% of the AI chip market share. This ban will directly restrict China's imports of high-end AI chips, which is expected to accelerate the domestic substitution process in the industry chain and drive the continuous expansion of capital expenditure by domestic leading companies **AI Edge Penetration Accelerates Smart Device Iteration, Panel Leaders Actively Expand High-Generation OLED Production** The display panel industry is another major application area for clean rooms. In 2024, global panel shipments are expected to see a moderate rebound, with the maturity of AI edge applications accelerating the iteration of AI smart devices and AIPC products, leading to a steady growth in industry demand. The mainstream panel processes include two major categories: LCD and OLED. In recent years, China's new display industry has accelerated its development, with the mainland's LCD global production capacity accounting for over 90%, ranking first in the world. OLED has relative advantages such as high contrast and low energy consumption, with its penetration rate in smart devices continuously increasing (approximately 56% in 2024), while the penetration rates in larger screens like tablets and PCs are only 3%-4%, indicating ample growth potential. Currently, domestic panel leaders BOE Technology Group and Visionox are accelerating the construction of 8.6-generation OLED production lines aimed at medium-sized displays, while gradually increasing the global share of small-sized OLED panels, with capital expenditures remaining high. **Risk Warning:** Semiconductor capital expenditures may fall short of expectations, intensified industry competition, and insufficient policy support for the chip industry may occur ### Related Stocks - [603929.CN](https://longbridge.com/en/quote/603929.CN.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [CP00062.US](https://longbridge.com/en/quote/CP00062.US.md) - [000725.CN](https://longbridge.com/en/quote/000725.CN.md) - [603163.CN](https://longbridge.com/en/quote/603163.CN.md) - [002387.CN](https://longbridge.com/en/quote/002387.CN.md) - [00981.HK](https://longbridge.com/en/quote/00981.HK.md) - [00710.HK](https://longbridge.com/en/quote/00710.HK.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [200725.CN](https://longbridge.com/en/quote/200725.CN.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [601133.CN](https://longbridge.com/en/quote/601133.CN.md) - [000032.CN](https://longbridge.com/en/quote/000032.CN.md) - [01347.HK](https://longbridge.com/en/quote/01347.HK.md) ## Related News & Research - [TSMC Q2 employee bonuses rise more than 50%](https://longbridge.com/en/news/297431455.md) - [Jensen Huang: Nvidia’s Vera Rubin Platform Turns Electricity Into a $40 Billion Cash Machine](https://longbridge.com/en/news/297688917.md) - [Trip.com Group (TCOM) Could Be 28% Undervalued As Sportcation Demand Lifts Bookings](https://longbridge.com/en/news/297596221.md) - [Headlands Technologies LLC Lowers Stock Position in United Microelectronics Corporation $UMC](https://longbridge.com/en/news/297750817.md) - [Is Johnson Controls International (JCI) Cheap On Its HVAC And Automation Growth Story?](https://longbridge.com/en/news/297574229.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**