Core view
Li Jidian returned to the Taiwan stock exchange for listing. Li Jidian was formerly known as DRAM large factory Li Jing technology. In 2012, Lijing technology was delisted due to the financial crisis. In 2014, Lijing technology was transformed from DRAM factory to professional wafer foundry. In May 2019, Lijing group completed the enterprise restructuring, and Lijing technology transferred three 12 inch wafer factories and related assets to Lijing Integrated Electronic Systems Lab Co.Ltd(002339) Manufacturing Co., Ltd. In December 2021, the company was re listed on the Taiwan stock exchange of China.
There is a strong demand for car gauge chips, and Liji Electric has built another 12 inch wafer factory. As the sixth largest wafer foundry in the world, Li Jidian had a revenue of US $1.553 billion in 2020, accounting for 2% of the market. The company plans to invest NT $278 billion in Zhuke Causeway Park in the next 10 years to establish a production base with a monthly production capacity of 100000 12 inch wafers. Due to the strong demand for automotive electronics, the company’s current production capacity of about 30000-50000 pieces of Causeway factory has been fully contracted by customers.
Li Jidian mainly manufactures storage, logic and discrete devices. The company currently has two 8-inch and three 12 inch wafer factories. The 8-inch production line mainly focuses on power devices to meet the demand for semiconductor components of electric vehicle power system in the future. The 12 inch logic production line mainly focuses on the system peripheral IC, and does not compete with the main OEM in the field of nano processor IC production. Storage OEM mainly focuses on low and medium capacity niche and IOT application storage chips, avoiding competition with the three major manufacturers in the field of computer, server and mobile phone storage.
The electronics market is weaker than the market
From December 6 to December 10, the Shanghai index rose 1.63%, CITIC electronics rose 0.48%, underperforming the market by 1.15 percentage points. Year to date, the Shanghai index rose 5.57%, CITIC electronics rose 18.78%, outperforming the market by 13.22 percentage points. From December 6 to December 10, the Philadelphia Semiconductor Index rose 2.89%; Year to date, the Philadelphia Semiconductor Index rose 40.03%.
Increase in electronic industry segments
From December 6 to December 10, the top five sectors in the electronics segment were security, panel, optical optoelectronics, consumer electronics components and consumer electronics, up 7.70%, 5.35%, 4.44%, 4.35% and 4.12% respectively. Since the beginning of the year, the top five sectors in the electronics segment are discrete devices, semiconductor equipment, passive components, semiconductors and LEDs, up 73.57%, 61.50%, 41.85%, 31.59% and 26.28% respectively.
Individual stocks up and down: A shares
From December 6 to December 10, the top five companies in the electronics industry were Shanghai Bright Power Semiconductor Co.Ltd(688368) , Luxshare Precision Industry Co.Ltd(002475) , Hebei Sinopack Electronic Technology Co.Ltd(003031) , Gettopacoustic Co.Ltd(002655) and Tpv Technology Co.Ltd(000727) , up 18.73%, 17.32%, 15.95%, 15.27% and 14.89% respectively; The companies with the top five declines were Electric Connector Technology Co.Ltd(300679) , Shenzhen Frd Science & Technology Co.Ltd(300602) , Anhui Tongfeng Electronics Company Limited(600237) , Wuxi Nce Power Co.Ltd(605111) and Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) , down 14.57%, 14.29%, 13.54%, 13.11% and 12.12% respectively.
Investment advice
It is recommended to pay attention to power semiconductor companies Starpower Semiconductor Ltd(603290) , Macmic Science & Technology Co.Ltd(688711) , Hangzhou Silan Microelectronics Co.Ltd(600460) , etc.
Risk statement
R & D is less than expected, domestic substitution is less than expected, and downstream demand is less than expected
