CITIC Securities: Leading semiconductor equipment companies will continue to benefit from strong demand for logic and memory.

According to a research report by CITIC Securities, citing SEMI data, the global WFE market size is projected to grow by 12% year-on-year to US$117.3 billion in 2025. The report further projects that the global WFE market size will grow by 26% and 35% year-on-year to US$147.8 billion and US$199.5 billion in 2026 and 2027, respectively. In 2027, downstream foundry/logic is expected to account for 52% and memory for 39% (DRAM and NAND will account for 24% and 15%, respectively). Considering the aggressive capital expenditure guidance and expansion plans of major customers, leading semiconductor equipment companies will continue to benefit from strong logic and memory demand. Based on downstream market demand, competitive landscape, equipment spending intensity, company performance, and valuation, the report strongly recommends leading advanced lithography companies, those with upward potential for EUV and DUV shipments; companies with significant advantages in the DRAM sector and relatively low valuations; companies with leading etching capabilities and the highest NAND revenue share; and companies with increasing demand for volume testing, but whose profit margins may still face short-term headwinds.