Completion of bidding procurement: Huahong’s large-scale bidding has been gradually implemented.
In January 2022, Huahong Wuxi phase I increased capital and production by 29500 pieces / month, and the bidding results of the project equipment have been successively announced. This month, the bid winning results of 48 equipment have been announced, all of which are the previous core equipment. Including 6 photolithography machines, 23 film equipment, 7 ion implantation equipment, 7 CMPs and 5 furnace tubes. Compared with the previous period, the company completed a total of 267 sets of bidding procurement in 2021, and the procurement scale this month is considerable.
New bidding release: Huahong Wuxi bidding measurement and sealing test equipment, and SMIC Shaoxing phase II bidding was launched.
In January 2022, Huahong issued a large number of bidding documents for measuring equipment and factory equipment. There are 91 wafer manufacturing equipment in total, including 4 cleaning equipment, 38 measuring equipment and 49 rear packaging / testing equipment. In addition, there are 192 factory equipment (chemicals, secondary distribution and tail gas treatment), 555 vacuum pumps and 3 other auxiliary equipment.
In addition, SMIC Shaoxing has launched the bidding for the factory process support system of phase II wafer manufacturing project (phase I). According to the bidding announcement, the total investment of the project is 1.27 billion yuan, and the clean room area to be built is 40000m2. The first phase of construction is expected to start on February 15, 2022, move in the equipment on July 30, and complete on March 28, 2023. SMIC Shaoxing phase II project is expected to have a total investment of 16 billion yuan for 6-inch compound device wafer manufacturing and 8-inch characteristic process production.
Overseas equipment giants are optimistic about the demand for equipment, and the capital expenditure of wafer factories continues to rise.
On January 26, Fanlin, the global equipment leader, said at the performance presentation meeting: Despite the tight supply of upstream parts, the company still saw an unprecedented level of downstream demand, and the company also achieved a record high revenue in fy2022q2. At the downstream Fab end, we also see that major Fabs in the world have significantly increased capital expenditure guidelines. TSMC expects capital expenditure of US $40-44 billion in 2022, with a year-on-year increase of 33-46%; The capital expenditure of liandian is expected to be USD 3 billion in 2022, with a year-on-year increase of 67%; STMicroelectronics expects capital expenditure of US $3.4-3.6 billion in 2022, with a year-on-year increase of 86-97%. Semiconductor equipment demand boom is expected to continue.
Investment suggestion: in 2021, the downstream wafer factories actively expanded their production, which promoted the growth of bidding procurement of semiconductor equipment, while 2022 will still be a year for the accelerated implementation of local wafer production lines. Huahong’s continuous and vigorous bidding reflects the strong willingness of the wafer factory to expand production and the continued prosperity of the equipment market in 2022. It is recommended to pay attention to Naura Technology Group Co.Ltd(002371) , Advanced Micro-Fabrication Equipment Inc.China(688012) , shengmei Shanghai, Kingsemi Co.Ltd(688037) , Shanghai Wanye Enterprises Co.Ltd(600641) .
Risk tip: the downstream demand of the semiconductor industry is less than expected, the expansion progress of the wafer factory is less than expected, and the progress of equipment R & D is less than expected.
