Key investment points
The overall market fluctuated, and the semiconductor sector fell
During the week from February 28 to March 4, the A-share market continued to fluctuate and the semiconductor sector fell: the Shanghai and Shenzhen 300 index was – 1.68%, the Shanghai Composite Index rose slightly by 0.01%, the Shenzhen Component Index was – 2.9%, the gem index was – 3.75%, CITIC Electronics was – 4.22% and the semiconductor index was – 0.30%. Among them: semiconductor design – 2.3%, semiconductor manufacturing – 2.8%, semiconductor packaging – 2.5%, semiconductor materials – 1.7%, semiconductor equipment – 2.7%, power semiconductor – 2.9%. In the week, the Philadelphia Semiconductor Index fell by 5.61%, and the Taiwan Semiconductor Index fell by 0.93%. As of March 4, the total market value of A-share semiconductor companies had reached 3709 billion yuan, a month on month increase of – 2.55%.
Industry news:
1) the price of automobile MCU continues to rise: according to jiwei.com, due to the shortage of automobile chip supply, the delivery date has hardly improved. Infineon, NXP, Renesas, Texas Instruments and Italian French semiconductor, the world’s top five chip suppliers, are ready to further increase the quotation of automobile MCU or power devices. Chip dealers predict that the price of automobile MCU will rise by another 15-20% in the second quarter of 2022.
2) lack of automobile cores and shutdown of some Ford factories: according to juheng.com, due to the continuous shortage of semiconductor chips in the world, Ford once again reduced the production of high-profit trucks and SUVs. The Kentucky factory that makes heavy pickup trucks and SUVs and the Ohio factory that makes medium-sized truck and automobile chassis are expected to shut down in the week of March 7-13. Before Ford announced the production reduction, the company had just split the traditional automobile industry and electric vehicle business into two units to streamline production lines and increase electric vehicle production.
3) the birth of chiplet’s new interconnection standard ucie: on March 2, ten industry giants, including AMD, Google cloud, Intel, Samsung and TSMC, jointly launched the first chiplet industry standard specification “ucie”. In 2019, amd set off the trend of chiplet in the industry, but the initial development of chiplet was limited by interconnection standards and packaging technology. The birth of ucie has cleared a major obstacle to the development of chiplet. The standard defines the inter chip I / O physical layer, inter chip protocol, software stack, etc., establishes a unified standard for interconnection at the packaging level, and realizes high bandwidth, low latency and cost-effective packaging connection.
Plate tracking:
Simulation: this week we released the report “mainland simulation has entered the golden development period and is optimistic about the first tier manufacturers of R & D strength”. The main points are as follows:
1.1 we believe that the simulation industry has ushered in a golden period of development after “trade friction + core shortage tide” broke the supply chain barriers and Semiconductor Manufacturing International Corporation(688981) , Huahong simulation technology gradually matured and broke the manufacturing barriers. Because analog chip design relies heavily on the personal experience of engineers, we are optimistic about manufacturers whose R & D strength is in the first tier.
1.2 we analyzed two growth paths of analog chip companies, both of which have successful examples overseas. One is guangtuo general type material number. Typical manufacturers include Sg Micro Corp(300661) , 3Peak Incorporated(688536) , etc. Shanghai Awinic Technology Co.Ltd(688798) , nano core micro (to be listed), Wuxi Chipown Micro-Electronics Limited(688508) , Wuxi Etek Microelectronics Co.Ltd(688601) , etc., which are benchmarked to overseas large factories Ti; One is a large material number that focuses on customization. Typical manufacturers such as xidiwei are represented by overseas large manufacturers Maxim and linear.
2) materials: National Silicon Industry Group Co.Ltd(688126) fixed increase is implemented, and the second phase of large fund is overweight. The company recently released the performance express of 2021 and announced the results of fixed increase issuance. In 2021, the company achieved a revenue of 2.467 billion yuan, a year-on-year increase of 36.19%, and a net profit attributable to the parent company of 145 million yuan, a year-on-year increase of 66.58%. As the leader of China’s silicon wafer industry, the company is the first manufacturer in the mainland to realize the large-scale mass production of 12 inch semiconductor silicon wafer. At present, 12 inch silicon wafer has broken through the process node of 14 nm process and delivered in mass production. With the strong demand in the downstream market, the company plans to raise an additional 5 billion yuan. The investment projects are 300mm high-end silicon wafer R & D and advanced manufacturing project for integrated circuit manufacturing, 300mm high-end silicon-based material R & D pilot project and supplementary liquidity funds. After the completion of the project, National Silicon Industry Group Co.Ltd(688126) will increase the production capacity of 300 thousand pieces of semiconductor silicon wafers per month.
3) equipment: the IPO registration of tuojing technology was approved, and shengmei Shanghai reported good performance. On March 1, the CSRC approved the IPO registration of tuojing technology. It is reported that the company is the only manufacturer of integrated circuit PECVD and sacvd equipment for industrial application in China. The company plans to raise nearly 1 billion yuan for the production, research and expansion of semiconductor equipment. On the same day, shengmei Shanghai, the leader of domestic cleaning equipment, released its 21st Annual Report, with a revenue of 1.62 billion yuan, yoy + 61%, and a total annual shipment of 2.4 billion yuan, yoy + 92%. Previously, the company gave guidance at the law conference, and it is expected that the median income of 22 years is 385 million US dollars, and the production capacity target of 22 years is 4 billion yuan.
4) power: Wuxi Nce Power Co.Ltd(605111) 21 years of high performance, 22 years of new energy business volume can be expected. On March 3, the company announced that in 21 years, it had achieved a revenue of 1.5 billion yuan, yoy + 57%, net profit attributable to the parent of 410 million yuan, yoy + 195%, net profit not attributable to the parent of 400 million yuan, yoy + 198% – the company’s performance increased significantly, showing the high prosperity of the semiconductor industry. Looking forward to 2022, with the company’s large volume of new energy photovoltaic IGBT and automotive MOSFET products, combined with the guarantee of production capacity at the OEM, it is expected to realize the rapid growth of new energy business.
Investment suggestion: it is suggested to pay attention to Will Semiconductor Co.Ltd.Shanghai(603501) , Gigadevice Semiconductor (Beijing) Inc(603986) , Sg Micro Corp(300661) , Zhuzhou Crrc Times Electric Co.Ltd(688187) , Hangzhou Silan Microelectronics Co.Ltd(600460) , Hangzhou Lion Electronics Co.Ltd(605358) , National Silicon Industry Group Co.Ltd(688126) , Naura Technology Group Co.Ltd(002371) .
Risk tips: the demand is less than expected, the constraints of capacity bottlenecks, the technological progress of mainland manufacturers is less than expected, the Sino US trade friction is intensified, and the information used in the research report is not updated in time.
