On February 17, “counting from the east to the west” was fully launched, becoming another national super project after the “South-to-North Water Transfer”, “west to East power transmission” and “west to East Gas Transmission”. It is regarded as a key project under the framework of digital economy. It is part of the new infrastructure and carries the vision of establishing and improving the national integrated big data center system.
The data center industrial chain includes not only traditional civil engineering, but also it equipment manufacturing, information and communication, basic software, green energy supply, etc., covering a wide range of categories and driving effect. In addition to IDC, precision temperature control, equipment manufacturers, optical modules, telecom operators and other racetracks, the semiconductor industry is also an important part, which can provide the underlying computing support for the digital industry.
So, which semiconductor sectors are closely related to “counting from the east to the west”?
▍ data center related chips directly benefit, and the three main investment lines are concerned
The East West calculation project is the scope of new infrastructure construction. “Number” refers to data, “calculation” refers to computing power, that is, the data from the East is transmitted to the West for calculation and processing. In order to improve the data processing capacity of the western region, it is urgent to establish more local data centers, and data centers need many high-performance computing chips, which can derive three main investment lines:
Computing chip: the increase of data processing capacity is bound to reverse stimulate the data processing speed, and the demand for high-performance computing chips such as CPU, GPU, FPGA and XPU is expected to continue to increase;
Memory chips: data storage is the basis of data transmission and processing. With the explosive growth of data volume, the number and performance requirements of memory chips have increased significantly;
Server chip and interface chip: the main function of server chip and memory interface chip is to improve the speed and stability of memory data access, so as to match the increasing running speed and performance of CPU.
Specific to stocks, securities analyst He Lizhong said that the high-performance computing chip is the most difficult to battle the localization of chips. At present, the Chinese mainland high-performance computing chip is in its infancy, and A shares are relatively few companies. It recommends attention to Montage Technology Co.Ltd(688008) , Guoxi technology, Giantec Semiconductor Corporation(688123) , Gigadevice Semiconductor (Beijing) Inc(603986) , Changsha Jingjia Microelectronics Co.Ltd(300474) , Cambricon Technologies Corporation Limited(688256) , Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) ; Boc International (China) Co.Ltd(601696) analyst Wang dating suggested paying attention to: Montage Technology Co.Ltd(688008) , Shanghai Anlogic Infotech Co.Ltd(688107) – u, Cambricon Technologies Corporation Limited(688256) – u, Gigadevice Semiconductor (Beijing) Inc(603986) , Ingenic Semiconductor Co.Ltd(300223) , Giantec Semiconductor Corporation(688123) , Changsha Jingjia Microelectronics Co.Ltd(300474) .
▍ communication chips and chips related to data generation are favored in the medium and long term
Founder Securities Co.Ltd(601901) analysts Tan Jun and Chen Yuxi released a research report today to further sort out the benefit sectors in the medium and long term:
In the medium term, a large amount of data from the East needs to be stably transmitted to the West for storage and calculation, while long-distance communication transmission often faces the problem of data delay. Therefore, “computing from the east to the west” needs to further consolidate the network communication infrastructure, including switches, 5g base stations, routers, servers and other transmission equipment and wireless equipment, which will drive the rising demand for communication chips . Chuangyao technology, Unisplendour Corporation Limited(000938) , Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) , Inspur Electronic Information Industry Co.Ltd(000977) and other companies are expected to benefit.
in the long run, chips related to data generation remain highly prosperous. analysts of the agency said that “counting from the east to the west” alleviated the shortage of energy and land in the East, significantly reduced the cost of computing power, and was conducive to the generation of a large amount of data traffic in downstream application fields. applications in VR / Ar / metauniverse, driverless and other fields will accelerate the landing, and the demand for relevant chips will maintain a high boom, which will also drive the explosion of data traffic.
Other institutions pointed out that the optical module is an indispensable basic component of the new digital infrastructure. Benefiting from the East digital West computing project, the construction of data center will drive the large volume of optical modules in China’s digital communication market.
The raw materials required for optical module products mainly include optical devices, circuit chips, PCBs and structural parts. In high-end optical modules, the cost of optical chips accounts for as much as 50%. Therefore, upstream optical chips are expected to further usher in incremental space. the core targets of A-Shares in this sector include Advanced Fiber Resources (Zhuhai) Ltd(300620) , Accelink Technologies Co.Ltd(002281) , Henan Shijia Photons Technology Co.Ltd(688313) , Zhongji Innolight Co.Ltd(300308) , etc.
