According to a research report from CLSA, emerging AI applications are expected to drive rapid growth in both global and Chinese memory demand. Amid unprecedented memory shortages, bargaining power across the entire supply chain has increased, accompanied by a simultaneous rise in capital expenditures. The firm forecasts that the shipment volume of China's semiconductor memory market will grow at a compound annual growth rate (CAGR) of 12%, with revenue rising at a 22% CAGR, reaching $111 billion from 2024 to 2029. Memory manufacturers Montage Tech (06809) and GigaDevice (03986) are benefiting from AI adoption and an upward price cycle. Equipment suppliers Advanced Micro-Fabrication Equipment Inc. China (688012) and ASMPT (00522) are gaining from DRAM and advanced logic capacity expansion, as well as the localization trend. In the AI chip and hardware sector, domestic substitution coupled with high-end optical interconnect demand is favorable for Biren Tech (06082) and Zhongji Innolight Co.,Ltd. (300308). Foundries SMIC (00981) and HUA HONG SEMI (01347) will benefit from the increasing localization rate of AI chipset production.