Citic Securities: AI Inflation Reaches Materials Sector, Japan Import Substitution Theme to Expand

AI inflation has reached the materials sector, where targets are more dispersed and most strong companies are based in Japan, with bilateral tensions accelerating since the second half of 2025, according to a research report from CITIC Securities. The firm noted that supply-side import substitution combined with demand-side AI inflation creates a near-perfect setup. CITIC Securities expects the Japan import substitution theme to offer more room for trading and advised continued attention on semiconductor materials import substitution trades, as well as the certification pace and investment opportunities for domestic Chinese semiconductor materials companies accelerating import substitution, according to 36Kr.