China Galaxy Securities released a research report stating that the core impact of the "15th Five-Year Plan" lies in promoting deep collaboration across the upstream and downstream semiconductor industry chain—including design, manufacturing, and packaging/testing—to establish an internal circulation ecosystem. This will drive the industry toward higher-level full-chain independent innovation and security, building a more resilient domestic supply chain and empowering the maturity and expansion of the entire industrial ecosystem.

Additionally, the accelerated development of strategic emerging industries such as digital economy, artificial intelligence, and smart connected vehicles will create unprecedented application scenarios and market space for domestic chips. In summary, during the "15th Five-Year Plan" period, China's semiconductor industry will enter a new phase of high-quality development marked by independent innovation and supply chain security under national strategic guidance.

**Investment Recommendation**: Focus on full-chain breakthroughs and domestic substitution. Key insights from Galaxy Securities include:

1. **Strengthening National Coordination for Industrial Chain Synergy**: The plan explicitly calls for "improving the new national system and adopting extraordinary measures to achieve decisive breakthroughs in key core technologies across the entire chain, including integrated circuits, industrial machinery, high-end instruments, foundational software, advanced materials, and biomanufacturing." This indicates a systematic, top-down approach to concentrate efforts on the weakest links, such as semiconductor equipment, materials, and design tools. The strategy goes beyond market-driven actions, leveraging national laboratories, top-tier research universities, and leading tech enterprises to achieve breakthroughs in fundamental theories, core algorithms, and critical materials.

2. **Empowering Enterprises for Localization Breakthroughs**: The plan emphasizes "reinforcing enterprises as the mainstay of technological innovation, channeling innovation resources toward them, and encouraging them to lead innovation consortia and undertake national R&D tasks." This highlights the role of leading firms and innovative SMEs in driving technological progress. Companies like AMEC and NAURA are expected to spearhead major national projects, becoming key players in R&D and commercialization. The plan also targets "significantly increasing areas where China leads or keeps pace globally," signaling an upgrade in domestic substitution from "usable" to "high-performance." Driven by wafer fab supply chain security demands, equipment localization is likely to expand from mature to advanced processes. Meanwhile, breakthroughs in materials—such as photoresists, electronic specialty gases, and polishing fluids—will accelerate, benefiting domestic firms with technical expertise and scale.

3. **Strategic Opportunities Across the Semiconductor Value Chain**: The "15th Five-Year Plan" provides clear policy direction, fostering synergies across design, manufacturing, and packaging/testing to build a self-reinforcing ecosystem. The rapid growth of strategic sectors like AI and smart vehicles will further expand demand for domestic chips, offering critical opportunities for product validation, iteration, and technology upgrades.

**Risks**: Potential delays in technological iteration, international trade uncertainties, and intensifying market competition.