CMB Securities: Huawei's "Tao Law" is expected to drive technological upgrading of the industry chain, suggesting attention to fields such as foundry.

CICC Securities stated that Huawei has proposed the "Tao Law" to guide innovation in the semiconductor field, reshaping the paradigm of semiconductor iterative technology. This is expected to drive technological updates in the upstream and downstream industry chains. It is suggested to pay attention to areas such as foundry, advanced packaging and testing, and equipment. Analyst Yan Fan's team pointed out in the report that the core logic of the "Tao Law" is based on multi-layer chip vertical stacking and hybrid bonding, which in turn requires more stringent copper plating technology, surface smoothness, cleanliness, and bonding alignment accuracy. This will systematically increase the demand for copper plating equipment, chemical mechanical polishing equipment, hybrid bonding equipment, clean rooms, and related consumables. Currently, demand exceeds supply from China's domestic companies SMIC International and Hua Hong Semiconductor. There is a supply-demand gap in advanced processes, and long-term healthy domestic demand growth will drive accelerated expansion. Huawei's commercial validation of logic folding and 3D folding will generate strong new demand for advanced packaging. The multi-layer vertical heterogeneous architecture imposes higher requirements on equipment accuracy, so it is recommended to focus on the new demand for advanced packaging testing equipment, including TSV etching equipment and CMP equipment.