Core view
The first phase of SK Hynix’s acquisition of Intel NAND and SSD business has been completed. On December 29, 2021 local time, SK Hynix completed the first phase of the acquisition of Intel’s storage business for a consideration of US $7 billion. Intel will continue to manufacture NAND wafers at SK Hynix’s Dalian memory manufacturing plant and retain some intellectual property rights related to NAND flash wafer manufacturing and design until the transaction is finally completed. The second stage transaction is expected to occur after March 2025.
The memory chip market is highly concentrated, and SK Hynix bucked the trend to acquire and expand market share. According to trendforce data, the total market share of the top six global NAND flash manufacturers in 2021q3 is as high as 96.7%. The top six enterprises are Samsung, Kaixia, SK Hynix, Western Digital, micron and Intel, with market share of 34.5%, 19.3%, 13.5%, 13.2%, 10.4% and 5.9% respectively. After SK Hynix completes the acquisition, the market share is expected to further increase.
Memory chips have high standardization, significant scale effect and strong periodicity. According to the prediction of WSTS, the global memory chip market in 2021 will be about US $158.161 billion, a year-on-year increase of + 34.64%, accounting for 28.6% of the total global semiconductor scale. It is estimated that the global memory chip market will be about USD 171.682 billion in 2022, a year-on-year increase of + 8.53%. The demand for memory chips is large, the degree of product standardization is high, the stickiness between users and products is weak, and the supply and demand cycle of the industry is obvious.
The market of electronic plate is stronger than the market
From December 27 to December 31, the Shanghai index rose 0.60%, and CITIC electronics rose 0.94%, outperforming the market by 0.34 percentage points. Year to date, the Shanghai index rose 4.80%, CITIC electronics rose 17.20%, outperforming the market by 12.40 percentage points. From December 27 to December 31, the Philadelphia Semiconductor Index rose 0.35%; Year to date, the Philadelphia Semiconductor Index rose 41.16%.
Increase in electronic industry segments
From December 27 to December 31, the top five sectors in the electronics segment were semiconductor equipment, security, display zero group, semiconductor materials and optical optoelectronics, up 3.36%, 2.61%, 2.01%, 1.75% and 1.72% respectively. Since the beginning of the year, the top five sectors in the electronics segment are discrete devices, semiconductor equipment, passive components, display zero groups and LEDs, up 57.21%, 49.02%, 42.01%, 30.91% and 27.16% respectively.
Individual stocks up and down: A shares
From December 27 to December 31, the top five companies in the electronics industry were Chengdu Xuguang Electronics Co.Ltd(600353) , Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , Shenzhen Qingyi Photomask Limited(688138) , Shenzhen Yitoa Intelligent Control Co.Ltd(300131) and Shenzhen Click Technology Co.Ltd(002782) , up 25.13%, 23.18%, 23.05%, 15.79% and 15.74% respectively; The companies with the top five declines were Wuhan Golden Laser Co.Ltd(300220) , Svg Tech Group Co.Ltd(300331) , * ST Zhongxin, Anker Innovations Technology Co.Ltd(300866) and Suzhou Goldengreen Technologies Ltd(002808) , down 17.03%, 10.16%, 8.44%, 8.38% and 8.29% respectively.
Investment advice
It is recommended to pay attention to Gigadevice Semiconductor (Beijing) Inc(603986) , Ingenic Semiconductor Co.Ltd(300223) , Shanghai Fudan Microelectronics Group Co.Ltd(688385) related to memory chips.
Risk statement
Downstream demand is lower than expected, industry competition intensifies, and R & D is lower than expected.
