本报告来源于“慧博投研”，请勿外传！ Qingyuan Lin, Ph.D. +852 2123 2654 qingyuan.lin@bernsteinsg.com domestic players, given their 2026 revenue has baked into 2025 new order guidance (mostly due to revenue recognition difference between domestic vendors vs. overseas vendors, where the former need almost 1 year from order to revenue while the latter just need 1~2 quarters as long as the equipment leave the shore), the visibility for domestic vendors are pretty high. We now model aggregated domestic vendors' revenue to grow 36%, reaching $15bn. All in all, we view China WFE market in 2026 willbe another growth year, mainly driven by the growth of domestic vendors. ·Early signals on 2027 is a lot more positive. We admit that we also have very limited visibility about how 2027 import will look like, but right now we are basically modeling flattish, given Tokyo Electron's mgmt alluded that China might be flat in the following several years. We certainly doubt how much visibility do they have, but right now it seems safe to just assume a flattish year, as many investors think China will buy as much as they can until they can't. On the flip side, domestic 2026 order guidance looks rather positive (see here) and may even accelerate, hence we now model 2027 domestic revenue YoY+27% to $19bn, but we don't rule out the possibility of further upwards revisions. Net net, we think 2027 China WFE could also be a growth year, also driven by domestic growth. We also model 2028 to be just a year of slightly growth. However, indeed we believe there could be upside to our projection given the aggresive capacity expansion plans. ·We mostly revise up our Advanced Logic & Memory projection based on our channel check. We think next two years there will be massive expansion in domestic Advanced Logic & Memory to meet the surging demand of local Al. For our view on domestic Advanced logic & Al, please see our report here. EXHIBIT 3: We revised up 2025E/2026E/2027E by 3%/10%/37%, and fisrtly introduced our 2028E China WFE