This week, the electronics (Shenwan) sector index rose or fell by – 1.3%, ranking 11th in the rise and fall of Shenwan industry. The sub sectors with better performance in the electronics industry this week are semiconductor equipment and discrete devices. Among the leading industry segments, some power semiconductor companies increased significantly, and the increase of Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , Macmic Science & Technology Co.Ltd(688711) , Starpower Semiconductor Ltd(603290) this week ranked among the top ten in the industry.
The global car core shortage may continue. On March 17, Toyota Motor Company said it would lower its global production target in April to 750000 vehicles, 150000 vehicles less than the target at the beginning of the year. We calculated the impact of the lack of core on the scale of the automotive chip market in 2022. According to AFS forecast, if the annual production is reduced by 1.65 million, the lack of core will affect the market scale of US $1.19 billion, and the remaining market scale will be US $45.25 billion, an increase of 4.5% over 2021; If the value of single vehicle increases by 6%, the growth rate of market scale will reach 10.8%. However, if the problem of core shortage intensifies, the car factory reduces the production of 5 million vehicles and the value of single vehicles remains unchanged, it will affect the market scale of about US $3.6 billion, a year-on-year decrease of 1.1%. Therefore, mainstream automobile chip factories are also actively expanding production, but it is difficult to solve the “urgent need” in the short term. In 2021, Infineon, Bosch, Italian French semiconductor and other mainstream automobile chip factories began to use new wafer production lines, but the delivery date of semiconductor equipment is more than half a year. Coupled with product verification and capacity climbing, it is expected that it will take at least 1-1.5 years to put in large capacity, and the problem of “core shortage” may continue until 2023.
The Ministry of industry and information technology promotes the establishment of automobile standardization and pays attention to the suppliers of head mounted chips. On March 18, the Ministry of industry and information technology issued the key points of automobile standardization in 2022, emphasizing the importance of the standard system in various emerging application fields of automobiles and enhancing China’s participation in the formulation of international standards. China took the lead in formulating the global technical regulation on electric vehicle safety in 2018 and was elected as the vice chairman of the working group on autonomous driving and networked vehicles in 2019. We believe that under the framework of cooperation with Chinese automobile enterprises and in line with international standards, advanced enterprises with core vehicle chip supply capacity and entering the international market deserve attention. Recommended concerns: 1) Will Semiconductor Co.Ltd.Shanghai(603501) : the products cover Chinese foreign automobile enterprises, and the market share is the top three core suppliers of CIS sensors in the world; 2) Sanan Optoelectronics Co.Ltd(600703) : a vertically integrated platform compound semiconductor enterprise. The existing power semiconductor products have passed the certification of automobile benchmark customers, and the overseas market has also made a breakthrough.
Focus on suggestions: it’s the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, and the targets of performance growth: Caihong Display Devices Co.Ltd(600707) 03 \ , Gigadevice Semiconductor (Beijing) Inc(603986) , Shenzhen Kinwong Electronic Co.Ltd(603228) , etc.
Risk warning: risk of deterioration of the international situation, unexpected epidemic development and liquidity risk
