The investment in an integrated circuit production line can reach more than 10 billion yuan; It takes an average of 7.2 years for an innovative drug to be approved for marketing from clinical trials, and the development of a new material often has to go through dozens of processes and hundreds of process control points...... As the main position of China's capital market to develop new quality productivity and achieve high-level scientific and technological self-reliance and self-reliance, since the opening of the Science and Technology Innovation Board, the combination of "hard card substitution" (referring to focusing on hard technology, breaking through bottleneck technology, and realizing domestic substitution) has continued to show results, achieved core breakthroughs in many key areas, and further built the "ballast stone" of scientific and technological innovation.

Integrated circuits: The self-sufficiency rate of chips has been significantly improved, and the potential for domestic substitution has been enhanced

In recent years, under the resonance of multiple factors such as the complex and changeable external environment, the firm support of national policies, and the recovery of the industry cycle, the integrated circuit industry has ushered in a period of rapid development.

In fact, the Science and Technology Innovation Board has demonstrated its R&D strength in many subdivisions such as semiconductor materials, equipment, and chip design, and even "overtaking in corners", and has the potential to fully realize domestic substitution.

A number of representative companies on the STAR Market, such as SMIC (688981.SH), Haiguang Information (688041.SH), and Cambrian-U (688256.SH), have long been committed to improving the local manufacturing level of semiconductors, the performance of domestic GPU servers, and the computing power of AI chips.

Loongson Zhongke (688047.SH) is one of the epitomes of leading the acceleration of the domestic substitution process. The company continues to improve the independent and controllable level of chip research and development, production and software ecology, and the self-test performance of its key products such as Loongson 3A6000 processor and 3C6000/D 32-core server chip launched in the past two years has reached the level of Intel 10th generation core and Intel Xeon 6338 processor respectively.

The domestic analog chip market has long been dominated by Texas Instruments, ADI and other large American manufacturers, and the localization rate in the field of high-end analog chips such as automobiles is only 10%.

However, due to the impact of the recent tariff policy, U.S. semiconductor products and equipment are expected to face sales tax pressure in the Chinese market, which will affect their competitiveness in the Chinese market. On April 11, the Semiconductor Association issued a document defining the declaration standards for the origin of imports, and the market is expected to increase the export costs of Texas Instruments, a major overseas analog chip manufacturer, and other major analog chip manufacturers in the United States, and reduce their high gross margins and price advantages.

Market analysis believes that due to the impact of external policies, domestic analog chip manufacturers on the Science and Technology Innovation Board are expected to accelerate domestic substitution in high-barrier fields such as automotive electronics and further increase the share of domestic demand.

Companies such as SRP (688536.SH) and NOVOSENSE (688052.SH) have a wide range of products in the automotive field, covering rich categories such as signal chain and power management, and have emerged in the field of subdivided technologies such as automotive isolation chips, and their product performance surpasses that of international competitors.

In the field of materials, the latest market share of Tianyue Advanced (688234.SH) related products has ranked among the top three in the world, and it has fully and firmly mastered the breakthrough of the whole technology chain of crystal growth, defect control, processing and testing and component self-production in the most cutting-edge field of silicon carbide substrates. Recently, the company has also launched the industry's first full range of 12-inch silicon carbide substrate products.

AMEC said that what used to take three to five years to develop a new device now takes only two years or less to develop a competitive new device and enter the market smoothly. In FY2024, the company has successfully entered the market with six types of LPCVD thin-film equipment developed for advanced memory devices and logic devices. In addition, the company announced the development of electron beam measurement equipment, which is the most difficult in the military measurement equipment.

Under the "full chain" catch-up, according to data from market institutions, China's chip self-sufficiency rate has increased significantly from 16% in 2018 to about 30% in 2024.

Manufacturing: A number of high-end equipment manufacturing and new material companies' products are among the forefront of the industry

The vigorous development of China's high-end equipment manufacturing and new materials industry has further consolidated the independent and controllable foundation of the manufacturing industry. According to statistics, more than 100 high-end equipment manufacturing enterprises have gathered on the Science and Technology Innovation Board, including advanced process equipment such as industrial machine tools, industrial robots, and laser processing, and the downstream covers key areas of the national economy and people's livelihood such as rail transit, automobiles, electric power, aviation, and logistics. At the same time, more than 50 new material companies have landed on the Science and Technology Innovation Board, and the business layout of related companies covers many key fields such as electronic component materials, superconducting materials, cemented carbide materials, carbon fiber, and power battery materials.

In terms of high-end equipment, Kede CNC (688305.SH) has presided over or participated in more than 70 national and local projects, solved the urgent demand for high-precision processing equipment in aviation, aerospace and other industries, realized more than 1,300 large-scale applications, successfully filled a number of domestic technology gaps, and the autonomy rate of core components reached 85%, and the localization rate reached 95%.

China Railway Construction Heavy Industry (688425.SH) and China Railway 14th Bureau and the Fourth Institute of China Railway jointly built China's self-developed, maximum excavation diameter of 16.64 meters of "Jianghai" shield machine, on April 9 in the new "first tunnel of the Yangtze River" Haitai Yangtze River Tunnel officially opened the shield through the river, in the face of complex geology and ultra-high precision requirements, showing the technical strength of the "big country".

On the other hand, a number of new material companies have overcome a number of core basic components, key basic materials and advanced basic technology "neck" technical problems, and are the "invisible champions" behind the manufacturing industry.

Among them, Zhongfu Shenying (688295.SH) has matured the preparation technology of 10,000-ton dry-jet wet-spun high-performance carbon fiber, built a 10,000-ton dry-jet wet-spun carbon fiber production system with completely independent intellectual property rights for the first time in China, and built the world's largest single-scale dry-jet wet-spun high-performance carbon fiber production base.

In 2024, Jiachi Technology (688708.SH), a newly listed company on the Science and Technology Innovation Board, has filled the gap in the market by virtue of its important breakthroughs in the thinning and lightweight of stealth materials, providing key support for domestic stealth fighters and other equipment to improve concealment and practicability.

Biomedicine: "Breaking the ice" of innovative drugs for major diseases

The biomedical industry is one of the core areas supported by the Science and Technology Innovation Board.

It is reported that since the opening of the Science and Technology Innovation Board, a total of 20 innovative biopharmaceutical companies have been listed successively using the fifth set of listing standards, and another 3 innovative pharmaceutical companies that were not profitable at the time of listing, including BeiGene (688235.SH), Baili Tianheng (688506.SH), and InnoCare-U (688428.SH), have adopted the red-chip enterprise standard to land on the Science and Technology Innovation Board. This group of innovative drug companies has actively deployed cutting-edge technologies such as antibody drugs, ADCs (antibody-drug conjugates), and oligonucleotide drugs, and has widely focused on major diseases such as malignant tumors, autoimmune diseases, AIDS, and rare diseases, and continuously improved the accessibility and affordability of innovative drugs.

At present, many companies on the Science and Technology Innovation Board have shown their hard-core answers.

Remegen's (688331.SH) Phase III clinical trial data from Tatanercept for the treatment of myasthenia gravis was recently selected as the "latest breakthrough study" and presented at the 2025 American Academy of Neurology Annual Meeting (AAN), which is expected to change the global treatment landscape in this field with excellent patient improvement rates.

In the past two years, Baike Biotech (688276.SH) has made milestone progress in the field of herpes zoster prevention and tumor immunotherapy, and the company launched the first domestic live attenuated herpes zoster vaccine for people over 40 years old with a single-dose vaccination regimen and an inclusive pricing strategy of 1,384 yuan/dose, ending the market monopoly of imported vaccines.

CanSino (688185.SH) has received more than $17 million in project funding from the Gates Foundation to support the company's in-depth development, which is expected to contribute to the global eradication of polio.

Medical imaging equipment is a market segment with the highest technical barriers in the medical device industry, and in this field, United Imaging Healthcare (688271.SH) has broken the market monopoly of the three "GPS" giants (GE Healthcare, Philips Healthcare, and Siemens Healthineers) and labeled domestic medical devices as the industry's first, the first in China, and the world's first. In addition, the whole body 5.0T magnetic resonance uMR Jupiter developed by the company has become the only whole body human clinical ultra-high field magnetic resonance device in the world with NMPA, FDA and CE licenses at the same time.