According to a research report, SEMI data shows that global semiconductor equipment shipments reached $33.07 billion in Q2 2025, representing a 24% year-over-year increase. China mainland achieved sales of $11.36 billion, down 2% year-over-year but up 11% quarter-over-quarter, maintaining its position as the world's largest semiconductor equipment market with approximately 34.4% market share. The launch of flagship products is expected to gradually drive Micro LED chip market value, with projections reaching $461 million by 2029. Micro LED technology is progressively achieving commercialization across various sectors, from televisions and smartwatches to automotive displays, with each flagship product launch representing a technological breakthrough. The electronic semiconductor industry may be experiencing a comprehensive recovery in 2025, with industry competitive landscape expected to accelerate consolidation and repair, while industry profit cycles and related company earnings are anticipated to continue recovering. The sector maintains an "overweight" rating.

**Global Semiconductor Equipment Shipments Grow 24% YoY in Q2 2025, China Mainland Remains Top Market**

On September 8, according to the latest "Global Semiconductor Equipment Market Report" released by the Semiconductor Equipment and Materials International (SEMI), global semiconductor equipment shipments reached $33.07 billion in Q2 2025, up 24% year-over-year. Driven by advanced logic processes, HBM-related DRAM applications, and increased shipment volumes in Asia, Q2 2025 sales grew 3% quarter-over-quarter.

Looking at specific regional semiconductor equipment sales in Q2 2025, China mainland achieved sales of $11.36 billion, down 2% year-over-year but up 11% quarter-over-quarter, securing the position as the world's largest semiconductor equipment market with approximately 34.4% market share.

SEMI President and CEO Ajit Manocha stated: "The global semiconductor equipment market achieved record sales of $117 billion in 2024, with strong performance in the first half of 2025, generating revenue exceeding $65 billion. Chip manufacturers continue investing in capacity to support advanced logic and memory innovations driving the AI wave, as well as critical projects strengthening regional supply chain resilience."

**Micro LED Market Value Expected to Rise Rapidly Benefiting from Flagship Product Launches**

On September 9, according to TrendForce, Micro LED penetration in consumer electronics is accelerating. Following Samsung's launch of a 140-inch Micro LED TV in 2023, the Garmin Fenix8Pro smartwatch will incorporate this technology in 2025, along with Sony Honda Afeela's 30-inch automotive display expected by year-end, marking Micro LED's expansion across major sectors.

TrendForce indicates that these flagship product launches will gradually drive Micro LED chip market value, with projections reaching $461 million by 2029. Micro LED is progressively achieving commercialization across various fields, from televisions and smartwatches to automotive displays, with each flagship product launch symbolizing a technological breakthrough.

Leveraging advantages of high brightness and high contrast, Micro LED has already been adopted by some emerging smart glasses brands. As international major manufacturers join and Micro LED light source suppliers advance development, this technology will gradually emerge in near-eye display devices, helping boost overall industry value.

TrendForce also notes that market acceptance of Micro LED's current high power consumption and high unit prices remains a significant challenge, making it difficult to compete with more mature and cost-advantaged OLED technology in the short term. However, Micro LED can meet extreme brightness requirements for sports watches in outdoor environments and possesses high potential for integrating sensing components, paving the way for future product innovation and differentiation.

**Investment Recommendations**

The sector maintains an "overweight" rating, as the electronic semiconductor industry may be experiencing a comprehensive recovery in 2025, with industry competitive landscape expected to accelerate consolidation and repair, while industry profit cycles and related company earnings are anticipated to continue recovering.

Current focus areas include: semiconductor design sector stocks that are oversold but possess genuine performance and low PE/PEG ratios. For AIoT SoC chips, attention should be paid to Zhongke Lanxun (688332.SH) and Jucore Technology (688049.SH); for analog chips, focus on Meixin Microelectronics (688458.SH) and Nanochip Technology (688484.SH); in the driver chip sector, attention should be given to Fengda Technology (688279.SH) and Xinxiang Microelectronics (688593.SH); for semiconductor key materials focusing on domestic substitution logic, leading electronic materials platform companies deserve attention including Toncheng Advanced Materials (603650.SH), Dinglong Corporation (300054.SZ), and ACM Research (688019.SH); for the silicon carbide industry chain, focus should be on SICC (688234.SH, 02631).

**Risk Warning** Intensification of China-US trade frictions, end-market demand falling short of expectations, and domestic substitution progress below expectations.