Latest news: the EU officially announced the chip act on February 8, which plans to significantly increase the EU’s global chip production share to 20% by 2030, aim at the chip production capacity of 2nm and below processes, strengthen the localization of supply chain, and provide guidance for talent training and regional cooperation. Meanwhile, the US House of Representatives passed the US competition act 2022 on February 4, South Korea passed the special semiconductor act on January 11, and Japan also released the emergency strengthening plan for the semiconductor industry at the end of 2021. We believe that major regions in the world actively put forward the bill to revitalize the local semiconductor industry, highlighting the urgent demand for semiconductors in future economic development, which will push up the ceiling of the long-term space of the semiconductor industry.
Chip technology sovereignty. With the acceleration of the digital transformation of the global economy, chips have become the core carrier of many new technologies and application scenarios, and the consumption and process complexity are increasing day by day. The European Union, the United States, South Korea, Japan, China and other countries / regions have successively launched semiconductor incentive measures to increase the market share of the region in the global semiconductor industry and try to gain the voice of the market and technology. The European Union plans to invest 43 billion euros to increase the market share of global chip production from 10% to 20% by 2030; The United States plans to invest US $52 billion to vigorously promote chip investment and expand the construction of domestic chip factories; In 2030, Japan increased the revenue of Japanese semiconductor enterprises to three times that of 2020, attracting new factories to Japan; South Korea will promote us $451 billion to build itself into a comprehensive semiconductor power by 2030, leading memory chips and system chips, and investing in an integrated industrial belt of industrial chains. The industrial game in various regions will continue to promote the investment in the semiconductor industry, and the global investment in the semiconductor industry will usher in a new peak.
Supply chain localization. According to ASML’s EU Chips Act Position Paper, the capacity of chips in the EU, the US and Japan has dropped significantly in the past 30 years, and the capacity of Chinese mainland and South Korea has increased significantly. Due to the self-control demand of future economic development in the semiconductor industry, all regions will actively implement the supply chain control of the semiconductor industry, so as to stimulate regional investment in the whole semiconductor industry chain.
The semiconductor industry is developing faster than expected. Due to the rapid development and technological iteration of 5g, Internet of things, cloud computing, high-performance computing, automotive chips and other fields, the demand for semiconductors will be high for a long time. According to Gartner statistics, the global semiconductor revenue will be $583.5 billion in 2021. According to the latest report released by counterpoint, the semiconductor industry revenue will reach $1 trillion by 2030. In the next 10 years, the revenue of semiconductor industry will increase by about 71% and CAGR by about 6%.
Investment suggestions:
Equipment combination: shengmei Shanghai, Advanced Micro-Fabrication Equipment Inc.China(688012) , Naura Technology Group Co.Ltd(002371) , Kingsemi Co.Ltd(688037) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Wuhan Jingce Electronic Group Co.Ltd(300567) , Shanghai Wanye Enterprises Co.Ltd(600641) , Hangzhou Chang Chuan Technology Co.Ltd(300604) , Suzhou Maxwell Technologies Co.Ltd(300751) ; Suggestions: Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) , Gl Tech Co.Ltd(300480) , Thinkon Semiconductor Jinzhou Corp(688233)
Material combination: Jiangsu Yoke Technology Co.Ltd(002409) , Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) , Crystal Clear Electronic Material Co.Ltd(300655) ; Suggestions: National Silicon Industry Group Co.Ltd(688126) , Hangzhou Lion Electronics Co.Ltd(605358) , Red Avenue New Materials Group Co.Ltd(603650) , Tianjin Zhonghuan Semiconductor Co.Ltd(002129) , Hubei Dinglong Co.Ltd(300054)
Risk tips
The impact of the epidemic exceeded expectations; Increased shortage of parts; The localization process of semiconductor equipment has slowed down; The growth rate of semiconductor materials market in China slows down; The United States further banned the sale of key semiconductor equipment to China.
