Goldman Sachs Piotech (688072.SS, Not Covered): China AI Tour: Memory Capacity Expansion Drives Future Growth; Specification Upgrades Fuel Equipment Expansion
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During its China AI tour, Goldman Sachs hosted Piotech's management in Beijing on September 11, 2026. Management was positive on the deposition equipment business, citing China's semiconductor capex uptrend, the company's semiconductor process equipment (SPE) expansion, and specification upgrades toward advanced-node tools. This aligns with Goldman's CHIPS 4 report, which forecasts China wafer fab equipment (WFE) spending rising 13%, 20% and 15% year-on-year in 2026, 2027 and 2028, driven by higher memory and advanced-node investment supporting strong generative AI growth; rising Chinese capital intensity should benefit global and domestic SPE supply chains alike. Piotech, a domestic deposition equipment supplier and China's PECVD leader, also offers high-end CVD tools such as SACVD and HDPCVD plus ALD systems. Management sees capacity expansion by major local memory makers and rising SPE localization creating growth opportunities for domestic vendors over the next several years, and expects Piotech to retain its leading position in local thin-film deposition given its diversified portfolio, long market validation, and foundries' reliance on incumbent suppliers for yield stability. Advanced packaging equipment offers potential upside. Piotech is not covered; the disclosed share price is RMB620.88, with no rating or target.