Key investment points
The penetration rate of new energy vehicles has increased rapidly, promoting the expansion of the automotive electronics market. Driven by both policy and market, new energy vehicles represented by electric vehicles are an important direction for the development of the automotive industry in the future, and the penetration rate is increasing. Compared with fuel vehicles, the cost of automotive electronics in new energy vehicles accounts for a higher proportion, which promotes the rapid expansion of the scale of the automotive electronics market. The China Automobile Association predicts that by 2022, the global automotive electronics market will reach 2139.9 billion yuan and the scale of China’s automotive electronics market will reach 978.3 billion yuan.
Automotive electrification and intellectualization bring the demand for automotive semiconductors, and benefit from power semiconductors, vehicle regulation MCU and CMOS. The demand for new devices brought about by the intellectualization and networking of vehicles is mainly in the perception layer and decision-making layer, including camera, radar, IMU / GPS, v2x, ECU, etc., which directly drives the growth of various sensor chips and computing chips. According to the statistics of omdia, in 2019, the global vehicle specification semiconductor market scale was about US $41.2 billion, and it is expected to reach US $80.4 billion in 2025; In 2019, the scale of China’s vehicle specification semiconductor market was about US $11.2 billion, accounting for about 27.2% of the global market. It is expected to reach US $21.6 billion in 2025, and the market scale continues to expand. Since the second half of 2022, due to the impact of the epidemic, the insufficient chip inventory of car enterprises has been superimposed with strong downstream demand, and the crisis of lack of “core” of global car enterprises has been highlighted. The localization process of car specification semiconductor has been accelerated, and the subdivided semiconductor fields such as power semiconductor (IGBT, SiC device), car specification MCU and CMOS image sensor have ushered in incremental opportunities.
Investment strategy: the penetration rate of new energy vehicles has been continuously improved. Under the guidance of 5g and artificial intelligence, the development trend of vehicle electrification, intelligence and networking has become inevitable. The continuous promotion of “three modernizations” of automobile and the continuous development of intelligent driving effectively stimulate the market demand of automobile chips. Compared with consumer electronics and industrial chips, vehicle specification semiconductor has higher requirements for reliability, consistency, safety and stability, and has a higher industry threshold. At present, the voice of the industry is dominated by European, American and Japanese enterprises. There is a certain gap between Chinese manufacturers and international leading enterprises in technology and scale, and there is a broad space for domestic substitution.
In terms of investment suggestions, focus on the investment opportunities brought by the “three modernizations” of automobiles to power semiconductors, MCU and CMOS sensors. It is suggested to pay attention to Starpower Semiconductor Ltd(603290) (603290), Sanan Optoelectronics Co.Ltd(600703) (600703), Ingenic Semiconductor Co.Ltd(300223) (300223), Gigadevice Semiconductor (Beijing) Inc(603986) (603986), Will Semiconductor Co.Ltd.Shanghai(603501) (603501) and other enterprises.
Risk tip: the penetration of new energy vehicles is less than expected, and the domestic substitution is less than expected.
