Japan’s semiconductor equipment industry ushered in a new cycle of “3Dization” and “AIization” (Morgan Stanley)
Morgan Stanley's presentation materials for investors in the Japanese semiconductor equipment industry pointed out that driven by AI demand, chip manufacturing is evolving towards 3D structures such as GAA (gate all around), Hybrid Bonding (hybrid bonding), TS
Morgan Stanley's presentation materials for investors in the Japanese semiconductor equipment industry pointed out that driven by AI demand, chip manufacturing is evolving towards 3D structures such as GAA (gate all around), Hybrid Bonding (hybrid bonding), TSV (through silicon via), and puts forward higher requirements for etching, deposition, detection and other equipment. The report summarizes the global leading position of Japanese companies such as Tokyo Electron, SCREEN, DISCO, Advantest in photolithography, inspection, dicing, testing and other aspects, and is optimistic about their benefit from the capital expenditure cycle brought about by AI. This view contrasts with market concerns about the peak of the global semiconductor equipment cycle, emphasizing the structural incremental demand brought about by China's AI investment and 3D packaging. One-sentence conclusion: Japan’s semiconductor equipment industry is benefiting from AI-driven 3D technological changes and a new cycle of capital expenditures, and the technology moats of leading companies are deepening. Positive/negative: Positive for Tokyo Electronics (8035.T), DISCO (6146.T), SCREEN (7735.T), Advantest (6857.T). The market is divided on equipment cycles, but structural opportunities in AI and advanced packaging may be undervalued. Catalysts: 1) Capital expenditure guidance from TSMC, Samsung, and Intel; 2) Quarterly financial reports and order data from each equipment manufacturer.