Core view
Semiconductors: the price of liandian rises and the length of lattice core is about, and the wafer foundry boom will not decrease next year
In March 2022, the price of liandian may rise again, and the quotation of 28nm process may exceed that of TSMC. According to DIGITIMES, liandian, a large foundry of wafers, has decided to increase the foundry price in January next year, and will increase the price again on March 1 next year, including 5% for 8-inch wafers and 5% – 10% for 12 inch wafers. According to DIGITIMES estimates, it is expected that after the double rise in the OEM price of liandian in the first quarter of next year, its 28nm process quotation will increase to US $3200, or surpass the average quotation of TSMC’s 28nm process by US $3000-3100 for the first time. Since this year, the price of liandian has increased significantly, the gross profit margin has continued to increase, and it is predicted that the gross profit margin of Q4 will continue to increase this year. For next year, the company said that the production capacity will continue to be fully loaded and the price will continue to rise. In addition to liandian, Taiwan’s wafer foundry is the world’s most advanced, and Li Jidian has also determined to increase the prices of some products and processes by about 5% – 10% in Q1 next year.
AMD is about 4 years old and worth nearly US $2.1 billion. According to the securities and Exchange Commission (SEC) documents show that AMD, a large processor manufacturer, and lattice core, a large wafer foundry, have finalized an agreement. Lattice core will supply amd chips worth nearly US $2.1 billion from 2022 to 2025. Lattice core said that the main products supplied to AMD include data center, PC, embedded chips and other terminal market chips with great growth potential. Lattice core said that in order to solve the problem of chip shortage, the company worked closely with customers , the signing length is about to ensure supply. In terms of production capacity, the lattice core Singapore plant will start operation in the second half of next year and is expected to be put into operation in the first half of 2023.
At the end of 2021, as the lack of core eased, the view of weak actual demand for chips and concerns about overcapacity began to spread in the market. We believe that from an industrial perspective, the upstream and downstream enterprises of the industrial chain hold a positive attitude towards the market prosperity next year. On the one hand, in the first quarter of next year, liandian, world advanced and other wafer foundries continued to raise prices, which confirmed that the demand of the industry remained high. On the other hand, due to the global core shortage, downstream customers changed their preparation strategy, and the whole machine manufacturers preferred the operation of high inventory strategy, and signed long-term orders with the wafer factory to ensure sufficient long-term capacity supply. From the perspective of the whole machine manufacturers, they are still optimistic about the market demand next year.
However, for IC design enterprises, the new round of price increase of wafer foundry next year may bring certain cost pressure to enterprises. Under the background of low willingness of downstream customers to accept cost transfer, IC design enterprises may put pressure on gross profit in order to ensure sufficient production capacity. Therefore, in the design market with fierce market competition, it is recommended to pay attention to IC Design Enterprises with strong capacity guarantee ability and actively layout high-end products.
Consumer electronics: following oppo find n, Huawei P50 pocket came out, and new products were added to the folding screen market
Oppo find n was officially launched in the Chinese market this week, starting from 7699 yuan. On December 16, oppo released the foldable mobile phone findn at the future science and technology conference, which was officially launched in the Chinese market on December 23. Oppo find n adopts “quasi conical hinge”, which presents a shape similar to the lower edge of water drop at the fold. At the same time, UTG (ultra-thin reinforced glass) is used to make the screen more flat. Compared with Samsung folding screen mobile phone, oppo find n creases are lighter and can be folded for 200000 times without damage. In terms of price, the price of oppo find n8gb + 256gb / 12gb + 512gb is 7699 and 8999 yuan respectively.
Huawei p50pocket appeared on December 23, adding new products to the folding screen market. On the afternoon of December 23, Huawei released its new flagship folding screen mobile phone p50pocket at the winter press conference. It is Huawei’s first flip folding screen mobile phone, which has been optimized in many aspects in terms of image, screen and hinge. The self-developed water drop hinge technology and multi-dimensional linkage lifting are adopted to realize the seamless closing of the screen. In terms of chips, it is still equipped with Qualcomm snapdragon 8884g chip. In terms of price, the price of Huawei P50 pocket 8GB + 256gb / 12gb + 512gb is 8988 yuan and 10988 yuan respectively.
Towards the end of the year, major smartphone manufacturers have launched their latest folding screen mobile phone products. Following oppo and Huawei, glory announced on the 22nd that the first folding screen flagship magicv will be released soon. We believe that the launch of folding screen mobile phones of major brands will promote the prosperity of the folding screen mobile phone market, and the ceiling of the industry will continue to rise. The upstream and downstream enterprises of the folding screen industry chain are expected to benefit from the high prosperity of the folding screen mobile phone market.
Risk statement
The downstream demand of semiconductor is less than expected, and the folding screen is less than expected.
Related subject matter
Semiconductor design: [ Will Semiconductor Co.Ltd.Shanghai(603501) ] [ Allwinnertech Technology Co.Ltd(300458) ] [ Gigadevice Semiconductor (Beijing) Inc(603986) ] [ Sg Micro Corp(300661) ] [ Maxscend Microelectronics Company Limited(300782) ] [ Chipsea Technologies (Shenzhen) Corp.Ltd(688595) ]; Wafer Foundry: [ Semiconductor Manufacturing International Corporation(688981) ] [Huahong semiconductor]; Semiconductor material: [ Red Avenue New Materials Group Co.Ltd(603650) ] [Jingrui Co., Ltd.]; Power semiconductor: [ Wingtech Technology Co.Ltd(600745) ] [ China Resources Microelectronics Limited(688396) ] [ Hangzhou Silan Microelectronics Co.Ltd(600460) ] [ Starpower Semiconductor Ltd(603290) ] [ Wuxi Nce Power Co.Ltd(605111) ]
Consumer electronics: [ Goertek Inc(002241) ] [ Sunwoda Electronic Co.Ltd(300207) ] [ Avary Holding (Shenzhen) Co.Limited(002938) ] [ Luxshare Precision Industry Co.Ltd(002475) ]; Smartphone: [Xiaomi group]
Panel: [BOE] [shentianma] folding screen: [ Jiangsu Gian Technology Co.Ltd(300709) ] [ Wuhu Token Sciences Co.Ltd(300088) ]
