Morgan Stanley-Tracking China’s Semi Localization China local CPU adoption...-107219493

MMarch25,202410:34PMGMTUpdateTrackingChina’sSemiLocalizationAsiaPacificMorganStanleyTaiwanLimited++88622730-1725+88622730-2863ChinalocalCPUadoption;BigICCharlieChan+88622730-2871FundinjectionEquityAnalyst+8522848-7310KeyTakeawaysCharlie.Chan@morganstanley.comChinagovernmentPCdemandisc.10%inChina,or2%globally,thuslimitedDanielYen,CFAimpacttoIntel/AMD.ThreekeythemesofSEMICONChina2024:Chinalocalization,advancedEquityAnalystpackaging,SiC.Daniel.Yen@morganstanley.comChinaCPURayWu,CFA•ChinablocksuseofIntelandAMDchipsingovernmentcomputers.ChinaEquityAnalysthasintroducednewguidelinesthatwillmeanUSmicroprocessorsfromIntelRay.Wu@morganstanley.comandAMDarephasedoutofgovernmentPCsandservers,asBeijingrampsupacampaigntoreplaceforeigntechnologywithhomegrownsolutions.(Nikkei,MorganStanleyAsiaLimited+Mar25,2024)(link).Wethinkitisareiterationofpreviouspolicy–pleaserefertoourresearchChina'sLocalization:Computingfromthegroundup(28DaisyDai,CFAJun2022)forthebackgroundandourrelatedforecasts.Theimpacttoglobalsemivendorscouldbelimited,asChinagovernmentPCdemandisc.10%inEquityAnalystChina,or2%globally.Daisy.Dai@morganstanley.comChinagovernmentfundandequipmenttrade-showMorganStanleyTaiwanLimited++88622730-1723+88627712-3032•ChinareadiesUS$27bnfund:ChinaisreportedlyintheprocessofDylanLiuestablishingathird-phaseofitsBigICFund,withplan...