Write in front: Recently, danol, Crystal Clear Electronic Material Co.Ltd(300655) , Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) , Hangzhou Greenda Electronic Materials Co.Ltd(603931) , Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) , zhongjuxin and other wet high-quality material companies have carried out fund-raising and investment plans / projects for capacity expansion of wet electronic chemicals. As one of the core subdivisions of semiconductor materials, wet electronic chemicals have many functions and uses. What is the Growth Logic of the industry, and what are the differences between products and advantages? We will make an in-depth analysis from multiple dimensions.
Think 1: what is wet electronic chemicals and how important is it? Wet electronic chemicals, also known as ultra clean and high-purity reagents or process chemicals, are required to control the particle size of impurities below 0.5 μ m. The content of metal impurities is lower than ppm. In 1975, semi unified the grade standard of wet electronic chemicals, which are mainly used in semiconductor, display panel and Cecep Solar Energy Co.Ltd(000591) battery industries. Wet electronic chemicals are the key basic chemical materials in integrated circuits and one of the important wafer manufacturing materials. According to semi report, in 2020, the scale of wafer manufacturing materials was 34.9 billion US dollars, accounting for about 63% of the scale of semiconductor materials, and the process chemicals in wafer manufacturing materials accounted for about 6%.
Thinking 2: what is the market space, scale and Growth Logic of wet electronic chemicals? From a global perspective, according to the data of China Electronic Materials Industry Association, the global market scale of wet electronic chemicals will exceed US $5 billion in 2020. The demand of the three downstream application markets will reach 3.783 million tons in 2020 and is expected to reach 6.24 million tons by 2025. From the perspective of China, the market scale of China's wet electronic chemicals will exceed 10 billion yuan in 2020 and is expected to exceed 20 billion yuan in 2027. In addition, the state has increased its support for upstream materials of semiconductors and display panels since 2018, which has also helped speed up the domestic substitution process in the high-end segment of wet electronic chemicals. From the perspective of Growth Logic: 1) semiconductor field: wet electronic chemicals are mainly used in the processing of integrated circuits (chips) and discrete device wafers. Their main uses are cleaning, development, etching and stripping. The large-scale expansion of wafer factories outside China has driven the continuous growth of the demand for upstream semiconductor materials. The continuous promotion of integrated circuit process has boosted the industry demand. According to IHS data, it is expected that the proportion of advanced processes will exceed half by 2025, and the continuous promotion of integrated circuit process will continue to improve the technical requirements for wet electronic chemicals. In addition, it benefits from the accelerated transfer of semiconductor industry to Chinese mainland, and domestic substitution accelerates industry penetration. 2) Display panel field: capacity transfer to the mainland + high generation panel production line put into operation, which has greatly increased the demand for electronic wet chemicals; 3) Cecep Solar Energy Co.Ltd(000591) battery field: it is applied to the flocking, cleaning and etching of Cecep Solar Energy Co.Ltd(000591) battery. The demand is in a continuous rising channel, and the output growth of Cecep Solar Energy Co.Ltd(000591) battery enterprises drives the growth of the industry.
Thinking 3: how about the competition pattern of wet electronic chemicals and the business situation of each company? In terms of competition pattern, European and American enterprises and Japanese enterprises have strong technical advantages in the global market, accounting for 31% and 29% of the market share respectively, mainly occupying the high-end market; South Korea, Chinese mainland and Taiwan occupy third large market, accounting for about 38% of the market share. The Chinese mainland's wet electronic chemicals enterprises have a certain distance from the world's overall level, but in recent years they have reached the international leading level in some fields. The Chinese market can be divided into two parts according to the level of competition: in the low-end field, many Chinese enterprises have mastered relevant production technologies and the competition is fierce; In the high-end field, foreign-funded enterprises occupy most of the market, and Chinese enterprises with corresponding technical level will directly face the competition of foreign-funded enterprises.
From the perspective of Chinese companies: 1) product comparison: Crystal Clear Electronic Material Co.Ltd(300655) mainly produces four categories of microelectronic chemicals, and the technologies of hydrogen peroxide and ammonia break through the international G5 level Hangzhou Greenda Electronic Materials Co.Ltd(603931) product market is concentrated in the field of display panel Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) the products are relatively complete, involving many types of special wet electronic chemicals; Danor's VLSI technology, such as ultra clean and high-purity ammonia, has broken through the monopoly of foreign and international technology Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) for a long time, the sales volume and market share of functional chemical materials in the field of traditional semiconductor packaging rank first in China. 2) Business model: Crystal Clear Electronic Material Co.Ltd(300655) mainly adopts direct selling model, supplemented by distribution model Hangzhou Greenda Electronic Materials Co.Ltd(603931) mainly for domestic sales, supplemented by export sales. In addition, there is a customized OEM business model Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) , danor and Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) all adopt the direct selling mode of end customers. 3) Customer profile: downstream customers of wet electronic chemicals are mainly concentrated in semiconductor, lithium battery, led and other industries Crystal Clear Electronic Material Co.Ltd(300655) and Hangzhou Greenda Electronic Materials Co.Ltd(603931) cooperate with each other in the three downstream industries, and the other three downstream customers are mainly concentrated in the semiconductor industry. 4) Scale comparison: Crystal Clear Electronic Material Co.Ltd(300655) has a large volume and rapid growth. It is expected to make a profit of 170 ~ 220 million yuan in 2021, with a year-on-year increase of 123% ~ 186%. In addition, in the new third board, danor has been deeply engaged in ultra-high purity electronic chemicals for more than 20 years, mainly engaged in semiconductor wet process ultra-high purity microelectronic chemicals, and plans to build a 300000 ton ultra-pure electronic chemicals project close to customers, with strong profitability (gross profit margin of more than 40%) and an increase of more than 100% in 2021h1.
Risk warning: the development of the industry is not as expected; Decline in industry profitability
