Core view
The semiconductor industry expanded capital expenditure. According to IC insights, the capital expenditure of the global semiconductor industry will reach US $190.4 billion in 2022, with a significant year-on-year increase of 24%, a record high. TSMC, Samsung, Intel and other industry leading companies have expanded their capital expenditure, which is mainly used for the expansion of advanced processes. The European Commission, the US Department of Commerce and the South Korean government have provided financial support to enhance the competitiveness of the local semiconductor industry.
China’s semiconductor equipment and materials market has broad prospects. SEMI expects that the market of semiconductor materials in Chinese mainland will reach US $10 billion 400 million at the end of 2021, and for the first time, it will exceed US $10 billion. From 2020 to 2024, 8 12 inch wafer fabs were planned for Chinese mainland, and 12 inch wafer plants reached 1 million 500 thousand pieces per month in 2024. The growth of China’s semiconductor material market and the release of wafer factory capacity will stimulate the market demand of the upstream semiconductor equipment and material industry.
Policy support helps the development of China’s semiconductor equipment and materials market. The 2022 government work report proposes to promote the development of digital economy, enhance the competitiveness of manufacturing industry and promote carbon peaking, which are conducive to the development of China’s semiconductor industry. As the core hardware of digital industry, semiconductor has an important strategic position; Semiconductor industry is not only a national strategic emerging industry, but also a medium and high-end industry in line with “specialization and innovation”. It will receive strong policy support in terms of capital, talents and incubation platform construction; The semiconductor industry meets the standards of low-carbon and environmental protection. At the same time, the development of green industries such as electric vehicles will also provide sufficient market capacity for the development of the semiconductor industry.
The market of electronic sector is weaker than the market
From February 28 to March 4, the Shanghai Stock Exchange fell 0.11%, and the electronic sector fell 4.22%, 4.11 percentage points lower than the market. Year to date, the Shanghai index fell 5.28%, CITIC electronics fell 15.64%, underperforming the market by 10.36 percentage points.
Increase in electronic industry segments
From February 28 to March 4, there was no rise in the segments of electronics industry. Consumer electronics components, consumer electronics, passive components, PCB and security sectors fell the most, down 8.06%, 5.46%, 5.08%, 4.73% and 4.11% respectively.
Rise and fall of individual stocks: A shares
From February 28 to March 4, the top five companies in the electronics industry were Ocean’S King Lighting Science & Technology Co.Ltd(002724) , Cambricon Technologies Corporation Limited(688256) -u, Triumph Science & Technology Co.Ltd(600552) , Dongguan Chitwing Technology Co.Ltd(002855) and Guangdong Leary New Material Technology Co.Ltd(688683) , up 8.95%, 6.80%, 5.88%, 5.76% and 5.76% respectively.
Investment advice
Recommendations and recommendations are recommended for attention to the attention of Konfoong Materials International Co.Ltd(300666) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Giantec Semiconductor Corporation(688123) , Dongxin Co., Ltd.
Risk tips
The development of the industry is less than expected, and there is a risk of mismatch between supply and demand of wafer capacity.
