The market demand for semiconductors is still at a high level, and downstream chip manufacturers continue to raise prices. Although the capacity construction of wafer factories and IDMS has accelerated, due to the shortage of parts and chip components, the revenue recognition of semiconductor equipment is slower than the order growth, and there are still a large number of orders waiting for delivery at the equipment end.
Industry trends:
IPO progress: the market value of Kelun electronics is 12.3 billion yuan, and PS is more than 60 times; Juguang technology was issued on December 15 at an issue price of 78.69 yuan / share; [Suzhou] Guoxin technology will be released on December 24. As of December 19, 2021, 129 semiconductor companies had applied for IPO and carried out listing guidance. The issuing price of Kelun Electronics was 28.28 yuan / share, corresponding to more than 60 times of PS; Juguang technology was issued on December 15, with an issue price of 78.69 yuan / share; [Suzhou] Guoxin technology will be released on December 24; Longxin Zhongke and jiangbolong have passed the meeting; Guangliwei to be held; China micro electronics (Shenzhen) replied to the second round of inquiries; goer microelectronics has completed the listing guidance.
Power semiconductor: core Changzheng, a developer of new power semiconductor devices, completed a round C financing of more than 500 million yuan, and senguoke, a silicon carbide power device manufacturer, completed a round C financing of 100 million yuan. On December 16, core Changzheng, a developer of new power semiconductor devices, announced that it had completed a round C financing of more than 500 million yuan. This round of financing was led by CDH investment, followed by BAIC industrial investment, Gaorong capital, core kinetic energy investment, Huadeng international, etc. The fund will be mainly used to further strengthen R & D investment in new energy vehicles and photovoltaic products, and continue to expand production capacity. On December 14, senguoke, China’s leading silicon carbide power device manufacturer, announced the completion of round C financing of 100 million yuan. The leading investor of this round of investment is CICC capital, followed by China Science and technology Haichuang fund and Guangdong Lingxiao Pump Industry Co.Ltd(002884) (002884. SZ) invested by the national science and technology risk development business center under the Ministry of science and technology of the people’s Republic of China. This round of financing will continue to be used for industry research investment, business development and service system upgrading, and promote product R & D and iteration.
Semiconductor materials: Entegris, an American semiconductor material supplier, will acquire CMC materials, a global leader in CMP polishing materials, with a total transaction value of US $6.5 billion; German Merck announced to invest 3.896 billion yuan in research and development of overweight semiconductor materials in Taiwan. On December 15 local time, American semiconductor material manufacturer Entegris announced that it would acquire rival CMC materials with a total transaction value of US $6.5 billion. The transaction is expected to be completed in the second half of 2022. This will enrich Entegris’s business portfolio and bring it closer to becoming a one-stop supplier in the field of semiconductor materials. German Merck, a supplier of semiconductor materials, announced on the 14th that it would invest about NT $17 billion (about RMB 3.896 billion) in Taiwan in five to seven years to focus on the substantial expansion of new production lines and R & D strength of Electronic Science and technology enterprises, and focus on the development of semiconductor enterprises.
Semiconductor equipment: in 2021, the sales volume of semiconductor equipment will be the first to break 100 billion US dollars, and Chinese mainland will be the largest market. On December 14, The International Semiconductor Industry Association (semi) released the overall global original equipment manufacturers at the end of the year According to the forecast report of semiconductor equipment (OEM), the total sales of global semiconductor manufacturing equipment will exceed US $100 billion for the first time in 2021, reaching US $103 billion, up 44.7% from US $71 billion in 2020. At the same time, it is expected to further increase to US $114 billion in 2022. On the evening of December 12, semiconductor equipment manufacturers Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) According to the announcement, the leading group of New Coronavirus disease prevention and control in Shangyu District of Shaoxing city issued the circular on strengthening the control measures in the whole region in December 9th, requiring all enterprises to stop work except for epidemic prevention needs and livelihood security. According to the above notice, the plant areas of the company and its subsidiaries in Shangyu began to stop production in an orderly manner, fully cooperate with the government’s epidemic prevention work, and curb the spread and spread of the epidemic.
Wafer foundry / chip manufacturing: SK Hynix overweight Wuxi, making every effort to attack China’s 8-inch wafer foundry market; BMW announced an alliance with German chip manufacturer iinova and American chip manufacturer global foundries. According to Taiwan media moneydj, Sk Hynix (skhynix) has made a breakthrough in the wafer foundry industry to seize the Chinese market. Its affiliated enterprise SK Hynix system IC is about to close the M8 plant in South Korea and transfer the equipment to Wuxi, China. SK Hynix system IC Wuxi plant will be completed in the first quarter of 2020, and the equipment of M8 plant will be transported to no tin in the second half of 2020. The new plant has been partially operated. SK Hynix system IC is expected to complete the relocation in the first half of next year We will try our best to attack China’s 8-inch wafer foundry market. Intel CEO Kissinger met with TSMC executives yesterday to obtain 3nm OEM capacity. On December 8, BMW said that it had signed a long-term chip supply agreement with German chip manufacturer iinova and American chip manufacturer global foundries to ensure the supply of “millions” of chips every year.
IC Design: Apple’s self-developed RF chip, Qualcomm’s total revenue climbed to $7.7 billion in the third quarter, ranking first among design companies in the world. On December 16, the financial Associated Press reported that Apple was setting up a new office in Irvine, California, and began to recruit engineers to find RF chips and RFICs (RF IC) and Wireless SoC R & D experience, Apple will also develop Bluetooth and Wi Fi chips. According to trendforce data, thanks to the hot semiconductor market this year, the total revenue of the world’s top ten IC designers in the third quarter of 2021 reached US $33.7 billion, a year-on-year increase of 45%. Among them, Qualcomm’s total revenue in the third quarter climbed to US $7.7 billion, a year-on-year increase of 56%, ranking the first First in the world.
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: National Silicon Industry Group Co.Ltd(688126) , Jiangsu Yoke Technology Co.Ltd(002409) , Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) , Crystal Clear Electronic Material Co.Ltd(300655) ; Suggestions: 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)
Power semiconductor: Wuxi Nce Power Co.Ltd(605111) , China Resources Microelectronics Limited(688396) ; Suggestions: Starpower Semiconductor Ltd(603290) , Hangzhou Silan Microelectronics Co.Ltd(600460) , Wingtech Technology Co.Ltd(600745)
Simulation suggestions: Sg Micro Corp(300661) , 3Peak Incorporated(688536)
RF recommended attention: Maxscend Microelectronics Company Limited(300782)
FPGA recommended attention: Shanghai Anlogic Infotech Co.Ltd(688107)
CIS: Will Semiconductor Co.Ltd.Shanghai(603501) . Suggestions: Galaxycore Inc(688728)
MCU： Gigadevice Semiconductor (Beijing) Inc(603986) ； It is recommended to pay attention to Sino Wealth Electronic Ltd(300327)
Other suggestions and concerns: Sanan Optoelectronics Co.Ltd(600703) , Espressif Systems (Shanghai) Co.Ltd(688018) , Bestechnic (Shanghai) Co.Ltd(688608)
Risk statement
The impact of the epidemic exceeded expectations; The localization process of semiconductor equipment has slowed down; The growth of semiconductor materials market in China has slowed down; The United States further banned the sale of key semiconductor equipment to China
