Bernstein has singled out a trio of domestic wafer fabrication equipment companies it believes are well positioned to gain from China’s move toward supplier substitution in the semiconductor supply chain. The firm’s analysis centers on local equipment manufacturers that are increasing their footprint as Chinese chipmakers source more tooling from domestic vendors.
All three firms named in Bernstein’s review carry Outperform ratings, reflecting the house’s constructive view of their growth prospects in the context of China’s drive to build out its wafer fabrication equipment capabilities and reduce reliance on foreign suppliers.
NAURA
Bernstein assigns NAURA an Outperform rating and a CNY 680.00 price target. The firm characterizes NAURA as the domestic leader in wafer fabrication equipment, noting the breadth of its product range. The company’s portfolio spans Deposition technologies - including PVD and CVD - Dry Etch ICP systems, Thermo Processes and Cleaning equipment. Bernstein highlights NAURA’s diverse customer base, which includes leading logic, DRAM and NAND manufacturers, and expects NAURA to benefit from the domestic substitution trend with accelerating share gains.
AMEC
AMEC is rated Outperform with a CNY 500.00 price target. Bernstein describes AMEC as primarily focused on Dry Etch technologies, including CCP and ICP systems, while rapidly expanding its Deposition capabilities in areas such as ALD, LPCVD and EPI. The research house notes that AMEC is commonly perceived as the domestic wafer fabrication equipment company with the best technology and the widest global recognition. Bernstein expects AMEC to continue to gain share as wafer fabrication equipment is increasingly sourced domestically in China.
Piotech
Bernstein selects Piotech with an Outperform rating and a CNY 580.00 price target, describing it as a rising domestic WFE vendor. The firm details Piotech’s focus on Deposition technologies including PECVD, HDPCVD, SACVD and ALD, and notes the company is expanding into W2W and C2W hybrid bonding equipment for advanced packaging applications. Bernstein points to Piotech’s strong track record of product innovation and expects the company to capture accelerating share gains from WFE domestic substitution in China.
Bernstein’s write-up centers on the theme that domestic substitution of wafer fabrication equipment in China is a primary driver for market-share gains among local vendors. The firm’s ratings and price targets for NAURA, AMEC and Piotech reflect that central expectation and emphasize each company’s technological niches and product breadth as the basis for anticipated growth.