[ZTDZ] 芯源微 Tracking Update: 10x Space for Domestic Replacement of Coater/Developer, Core Beneficiary of Advanced Packaging - 0728

English summary

Positioned in core areas, new architecture progress is positive. Front-end track equipment is the only core equipment on the production line that works in conjunction with lithography machines. The current market size is about 10 billion yuan. Japanese manufacturer TEL holds the vast majority of the share, and the domestic substitution rate is extremely low. 芯源微 is the leading domestic manufacturer of mass-produced front-end track equipment, having launched various models including offline, I-line, KrF, and ArF immersion, giving it a prominent positioning advantage. Track is on the eve of volume production with huge elasticity. The company's new-generation ultra-high-capacity track architecture FT Alkaid has made positive progress. This series of front-end ultra-high-capacity coaters/developers features high capacity, high stability, and high reliability. After passing verification, it is expected to meet downstream customers' needs and achieve a leap in domestic substitution rate. Core memory customer verification is progressing smoothly, and orders are expected to materialize. Small-batch orders are expected in mid-Q3, and other top customers will also begin verification one after another.…