Recently, only a few stocks such as Wuhan Jingce Electronic Group Co.Ltd(300567) have performed well, and the overall decline of A-share semiconductor sector is large. In terms of memory chips that encountered market concerns in the early stage, Listed company Meguiar (MU) rose sharply due to the performance exceeding expectations in the latest quarter. The global core shortage is still continuing, and the semiconductor industry is still in a period of high prosperity. The short-term sector adjustment is mainly affected by the release of overvalued risk and the fear of slowing down the progress of new production capacity caused by the obstruction of imported equipment of mainstream wafer factories. After the risk is released, the semiconductor sector is still one of the industries with the most growth potential.
Industry trends:
IPO progress: a number of semiconductor IPOs have been promoted, and gailun Electronics will be listed soon this week. Gailun electronics is about to land on the science and innovation board, and Guoxin technology is being released, Tianyue advanced (semi insulating and conductive substrates) will begin to apply for the purchase on December 31, 2021; Zhenlei Technology (RF chip, power management chip) and Dongwei semiconductor (high-performance power device) have agreed to register; Guangli micro has held a meeting; Zhongwei shares (Shenzhen) will hold a meeting; Zhenhua scenery has entered the inquiry stage; Zhongke flying measurement, huimangwei and canrui technology have declared.
Industry prosperity: in November, the data of semiconductor equipment shipments in North America and Japan were released. Last week, the semiconductor index and storage prices increased significantly, and the industry prosperity rebounded. According to semi and Japan semiconductor manufacturing device association, the shipment amount of semiconductor equipment in North America in November was US $3.93 billion, up 5% month on month and 50.6% year-on-year; Japanese semiconductor equipment shipments amounted to 281.6 billion yen, an increase of 3.6% over the previous month and a year-on-year increase of 58%. The average spot price of storage rebounded, nandflash64gb8gx8mlc rose 5.0% on a weekly basis, and the price of DRAM: ddr34gb512mx81600mhz rose 1.1% over last week.
Semiconductor materials: Zhongxin wafer semiconductor 12 inch silicon wafer phase II expansion project was completed, and Samsung successfully developed EUV photoresist in cooperation with Korean manufacturer Dongjin semiconductor. The second phase expansion project of Zhongxin wafer semiconductor 12 inch silicon wafer has been planned since March 2021 and completed on December 20. The construction time lasts about 9 months. The project will help Zhongxin wafer 12 inch silicon wafer production capacity increase to 200000 / month by the end of 2022. In terms of photoresist, Samsung said that the successful photoresist developed in cooperation with Dongjin semiconductor has broken the situation that South Korea’s EUV photoresist is completely dependent on overseas suppliers, and it is expected to supply it to the production line in batch as soon as the first half of next year. Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) on December 22, the investor interaction platform said that the company’s KrF photoresist temporarily planned production capacity is 230 tons, ARF photoresist is in the verification stage, while EUV photoresist has just started and is still under development.
Semiconductor equipment: Shanghai Wanye Enterprises Co.Ltd(600641) joined hands with Ningbo Xinen to invest in semiconductor equipment project, and Zhongke feitest applied for the IPO of Kechuang board. On December 23, Shanghai Wanye Enterprises Co.Ltd(600641) announced that Jiaxin semiconductor, a holding subsidiary of Shanghai Wanye Enterprises Co.Ltd(600641) , plans to implement a project with a total investment of 2 billion yuan, with an annual output of 2450 sets / set of new equipment and 50 sets / set of semiconductor refurbishment equipment, and build a 1 + n development framework and product platform based on ion implanters. According to the prospectus disclosed by AVIC, the products mainly include non graphic wafer defect detection equipment series, graphic wafer defect detection equipment series, three-dimensional morphology measurement equipment series, film thickness measurement equipment series, etc. in 2020, the company’s revenue was 238 million yuan, with a year-on-year increase of 324% and a gross profit rate of 41%.
Third generation semiconductors: Zhuzhou Crrc Times Electric Co.Ltd(688187) released the silicon carbide (SIC) high-power electric drive product c-power220s. On December 26, CRRC Zhuzhou Crrc Times Electric Co.Ltd(688187) released China’s first silicon carbide based (SIC) the high-power electric drive product c-power220s has a system efficiency of up to 94%, which can meet the requirements of high-frequency, fast charging, long endurance and high safety of current new energy vehicles; the silicon carbide devices and current sensors carried by the c-power220s electric drive system are independently developed by Zhuzhou Crrc Times Electric Co.Ltd(688187) .
Memory chip: micron’s latest fiscal quarter performance exceeded market expectations. In the first quarter of fiscal year 2022, micron achieved revenue of US $7.687 billion, a year-on-year increase of 33%, of which revenue from data center increased by 70% and revenue from automobile industry increased by 25%. Meguiar expects its revenue in the second quarter of fiscal year 2022 to be $7.3-7.7 billion, a year-on-year increase of 17% – 23%.
Wafer foundry / chip manufacturing: TSMC Japan invested in the construction of 22 / 28 nano wafer factory and Hangzhou Silan Microelectronics Co.Ltd(600460) increased capital to build the phase II project of 8-inch integrated circuit chip production line. TSMC, the leading foundry of wafers, and Sony semiconductor solutions Co., Ltd. of Japan set up a subsidiary in Japan and cooperated in the construction and operation of a wafer factory. It was reviewed by the Investment Review Committee of the Ministry of economic affairs and approved by announcement on December 20. On December 22, Hangzhou Silan Microelectronics Co.Ltd(600460) announced that it planned to use the raised funds of 531 million yuan to increase capital to Shilan Jixin for the phase II project of 8-inch integrated circuit chip production line.
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.
