Goldman Sachs: SMIC management is optimistic about China's semiconductor capital expenditure

Goldman Sachs published a research report stating that the management of SMIC (00981.HK) holds an optimistic view on the upward cycle of capital expenditure in China's semiconductor industry, believing that the rise of non-foundry technology migration will drive the development of this cycle. The firm expects that advanced logic and memory will become the main drivers of capital expenditure growth, with the supply chain increasing investments to narrow the gap between China's domestic supply chain and leading overseas companies.

The firm believes that continuous capacity expansion will support local semiconductor equipment companies in China, further promoting R&D and developing more localized equipment solutions. The firm maintains a positive outlook on SMIC, setting a target price of 134 yuan and a rating of "Buy."