苹果对CXMT内存的兴趣有力证明了公司的技术进步。

Greater China Semiconductors Apple’s Reported Interest in CXMT Memory a Strong Validation of theCompany’s Technological Progress Kevin ChenAC+852-2501-2125kevin.y.chen@citi.com CITI'S TAKE FT reported over the weekend that Apple is seeking U.S. governmentapproval to source memory from CXMT, a leading Chinese DRAM makercurrently included on the Pentagon 1260H Chinese Military Company List.While the approval outcome remains uncertain, Apple’s considerationalready provides a strong endorsement of CXMT’s technological progress, inour view. Such validation shifts CXMT from a ‘China domestic substitutionstory’ towards a ‘credible global No.4 DRAM maker’. We expect the news to Kyna Wong+852-2868-7820kyna.wong@citi.com Karen Huang+852-2501-2755karen.xw.huang@citi.com Yiming Li, CFA+852-2501-2857yiming.li@citi.com Apple reportedly seeking approval to buy memory from CXMT —News reportedApple is lobbying the Trump administration for approval to buy DRAM from CXMT(Financial Times, Jun 27th) amid surging memory costs. CXMT is currently on the Pentagon’s 1260H Chinese Military Company List. While 1260H does not bar U.S.companies from purchasing CXMT DRAM, Apple is seeking policy comfort as CXMTmay later be subject to tighter restrictions, such as the BIS Entity List. Apple’s ‘stamp of approval’ positive for CXMT/supply chain —We believe securingapproval to procure CMXT memory could prove challenging given the current U.S.political climate. However, Apple’s consideration of CXMT is a strong validation ofCXMT’s product reliability and the severity of the memory shortage. CXMT LPDDR5X(12Gb/16Gb die capacity) reaches speed of 10667Mbps, potentially addressable tohigh-end mobile, tablet, and notebook applications. Regardless of whether Applegets the purchase approval, its consideration of CXMT as a potential supplier shifts Prefer ASMPT, JCET —We prefer ASMPT (back-end equipment) given: 1) TCB andadvanced packaging demand upside; 2) rising OSAT capex; and 3) industry shiftingfocus towards the back end. We see broadening opportunities in TCB and photonicsand expect shares to re-rate beyond its historical range. We recently updated ourforecast for the 3 China OSATs (JCET, TFME, and TSHT) and raised TPs to reflect thestrong sector re-rating. JCET is our top pick given its high advanced packagingexposure (60-70% revenue), strong capability (2.5D, 3D, memory), and diverse See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations. Not for distribution in the People's Republic of China, excluding the Hong Kong Special Administrative Region and QualifiedForeign Institutional Investors. © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: dataCentral, Citi Research © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: dataCentral, Citi Research © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: dataCentral, Citi Research RELATED: Greater China Semiconductors:Sector Re-Rating Lifts Valuations Acrossthe Board; Model Update ASMPT (0522.HK; HK$195.1; 1; 26 Jun 26; 16:10) Valuation Our target price of HK$180 is based on peak valuation of 37x 2027E P/E. Weview the peak valuation as justified because we expect strong revenue andearnings recovery driven by: 1) AI-driven advanced packaging order wins,including TCB for HBM and CoW applications; and 2) ongoing recovery ofmainstream SEMI and SMT. Potential sales of SMT business could solidify its Risks Downside risks to our target price being achieved include: 1) a slowdown in AIinfrastructure outlook with delayed investment; 2) TCB market share loss atkey customers; 3) reduced TCB demand due to alternative technologies, such JCET Group (600584.SS; Rmb100.89; 1; 26 Jun 26; 15:00) Valuation We set our target price for JCET at Rmb110 based on a 6.0x 2027E P/B. Webelieve the China OSAT industry is entering an unprecedented upcycle drivenby AI proliferation, tightening industry supply, and growing emphasis onadvanced packaging, thus awarding JCET a premium valuation as a key Risks Key downside risks to our target price include: 1) advanced packagingexpansion outpacing demand growth, especially given challenges at thefront-end; 2) memory makers internalizing back-end packaging operations;3) falling utilization after industry capacity expansion; 4) geopolitical tensions Tianshui Huatian (002185.SZ; Rmb22.56; 1; 26 Jun 26; 15:00) Valuation We set our target price for TSHT at Rmb23.5 based on a 4.0x 2027E P/B. Webelieve the China OSAT industry is entering an unprecedented upcycle drivenby AI proliferation, tightening industry supply, and growing emphasis on historical range. We expect industry capacity utilization to remain tight given Risks Key downside risks to our target price include: 1) AI capex slowdown castingconcerns over subsequent OSAT demand; 2) falling utilization after industrycapacity expansion; 3) geopolitical