The awareness of “self-control” has spread all over the world, and countries have issued chip policies to support the construction of local wafers. “Self-control” is not only the goal of China’s semiconductor industry, but all over the world have begun to actively plan the revitalization plan of the semiconductor industry to realize the “self-control” of their own semiconductor industry. The European Commission announced the chip act, which proposed to provide more than 43 billion euros of financial support for the semiconductor industry to deal with the current shortage of semiconductors and strengthen the leading position of semiconductor technology in Europe; The US House of Representatives passed the US competition act of 2022, proposing to provide us $52 billion in financial support for the semiconductor industry for semiconductor manufacturing, research on key components of automobiles and computers, etc; South Korea plans to build the world’s largest semiconductor industry supply chain – “k-semiconductor industry belt” in China in 2030.
Overseas chip production capacity is uncontrollable and local production capacity is insufficient. Countries have strengthened their awareness of “independent control”. In the past two years, under the influence of natural disasters, epidemic situations, geopolitics and other factors, the vulnerability and instability of industrial chain globalization have been amplified, the advantageous industries in Europe and America have been affected by the lack of chip supply, and the income of automobile and other advantageous industries has been damaged. In order to achieve “chip freedom” first and prevent the lack of core since 2020, the awareness of “independent control” of semiconductor industry in various countries is strengthening.
Countries attach importance to “chip safety”, and the “globalization” of semiconductor industry chain may become history.
Before 2020, there is no large-scale core shortage in the global chip market, and the semiconductor supply chain presents global characteristics. In recent years, in consideration of national industrial security, governments have successively issued policies to cultivate local chip enterprises and improve China’s industrial chain.
In order to prevent the opposition of all monopoly parties, NVIDIA’s $66 billion acquisition of arm failed.
The acquisition requires the consent of regulators in the UK, the European Union, the United States and China, but as of the termination of the transaction, no government department has approved the transaction. Arm customers include technology giants such as Qualcomm, apple and Google. Customers are worried that ARM technology will be given priority to NVIDIA and customers will be treated unfairly. Therefore, they have expressed opposition to the acquisition. If NVIDIA succeeds in acquiring arm, “NVIDIA’s strong computing power + arm’s ecology” will monopolize the computing infrastructure in the era of artificial intelligence.
The regionalization of global chip production capacity is beneficial to China’s semiconductor industry.
Although the amount of capital expenditure for capacity expansion in various countries is very considerable, if you want to rapidly expand capacity, you may need to increase support and continue to expand expenditure. Compared with the United States, China has obvious cost advantages in building wafer factories. Relying on the advantages of policy support and low labor cost, China is expected to become the largest country in chip manufacturing.
Investment advice
Countries may adopt the model of building a set of semiconductor industrial chain to protect the safety of the industrial chain and maintain the core technology advantages at the bottom. It is recommended to pay attention to Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor, Hubei Dinglong Co.Ltd(300054) , Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) , Konfoong Materials International Co.Ltd(300666) , Naura Technology Group Co.Ltd(002371) , Advanced Micro-Fabrication Equipment Inc.China(688012) , Kingsemi Co.Ltd(688037) , shengmei Shanghai.
Investment risk
Semiconductor core technology cannot be shared globally. In order to realize semiconductor closed-loop, countries have blocked the core technology even more.
