Core view
Semiconductor: the price of Italian French semiconductor Q2 has increased across the board, and the earthquake has impacted the semiconductor supply chain
The price of Italian French semiconductor increased across the board, and the leading price of automobile chips increased by more than 10%. St STMicroelectronics Asia Pacific region has issued a notice to the distribution channels, saying that due to the impact of the epidemic and the continued strong demand in the semiconductor market, the increase in raw materials, energy and logistics costs has reached an indigestible level. In order to ensure the stable supply of follow-up products and meet the needs of customers, it has decided to increase the prices of all its product lines during Q2 in 2022, including the current backlog of orders. Renesas, Toshiba and NXP have decided to raise the price of auto chips by 10-20% in the second quarter.
The earthquake impacted the semiconductor supply chain and increased the uncertainty of production capacity. China Taiwan area 6.6 earthquake hit the semiconductor supply chain, and some foundries factories were affected. On March 23, Renesas electronics issued a notice that among the factories that were shut down due to the Fukushima earthquake on March 16, the resumption of work of nake factory, which produces vehicle MCU, will be delayed to March 26 due to some manufacturing equipment failures.
Huahong semiconductor plans to list a shares. According to the announcement of Huahong company, the board of directors of the company approved the preliminary proposal on the possible issuance of RMB shares and the listing of these RMB shares on the science and Innovation Board of Shanghai Stock Exchange. The issuance scale of Huahong semiconductor shall not exceed 25% of the issued share capital of the company after the expansion of the RMB shares to be issued and allotted according to the proposed issuance of RMB shares, and all shall be carried out by issuing new shares. The raised funds are currently proposed to be used for business development of the main business and general working capital.
The total scale of the top ten semiconductor design companies reached US $127.4 billion, a year-on-year increase of 48%. In 2021, due to the strong demand for various terminal applications, the wafer was out of stock, and the global semiconductor industry was seriously in short supply. The associated rise in chip prices increased the revenue of the world's top ten semiconductor designers to US $127.4 billion in 2021, a year-on-year increase of 48%.
We believe that the price of Italian French semiconductor rose across the board in the second quarter, and Renesas, Toshiba and NXP have decided to increase the price of auto chips by 10-20% in the second quarter, or all reflect that the shortage of auto chips has not been significantly improved. In the wave of automobile electrification and intellectualization, the demand for automobile chips may remain high for a long time. At the same time, with the increase of upstream costs, the price of automobile chips will rise in the future, and the delivery time will be extended or become a probability event. From the supply side, the black swan incident, such as the conflict between Russia and Ukraine, China's Taiwan region and Japan's earthquake, has frequently hit the global semiconductor supply chain, which has further increased the uncertainty of automotive semiconductor supply chain. Under the background of rising demand and increasing instability of overseas supply chain, Chinese automobile chip manufacturers may usher in historic development opportunities. With the continuous upgrading of product categories and rapid expansion of production capacity, the progress of domestic substitution is expected to accelerate.
Risk tips
Downstream demand is lower than expected; The frequent occurrence of black swan events brings the risk of capacity obstruction.
Related subject matter
Semiconductor design: [ Will Semiconductor Co.Ltd.Shanghai(603501) ] [ Allwinnertech Technology Co.Ltd(300458) ] [ Gigadevice Semiconductor (Beijing) Inc(603986) ] [ Sg Micro Corp(300661) ] [ Maxscend Microelectronics Company Limited(300782) ]; Wafer Foundry: [ Semiconductor Manufacturing International Corporation(688981) ] [Huahong semiconductor]; Semiconductor materials: [ Red Avenue New Materials Group Co.Ltd(603650) ] [Jingrui shares]; Power semiconductor: [ Wingtech Technology Co.Ltd(600745) ] [ China Resources Microelectronics Limited(688396) ] [ Hangzhou Silan Microelectronics Co.Ltd(600460) ] [ Starpower Semiconductor Ltd(603290) ] [ Wuxi Nce Power Co.Ltd(605111) ] [ Shenzhen Minde Electronics Technology Ltd(300656) ]
Consumer electronics: [ Goertek Inc(002241) ] [ Sunwoda Electronic Co.Ltd(300207) ] [ Avary Holding (Shenzhen) Co.Limited(002938) ] [ Luxshare Precision Industry Co.Ltd(002475) ]; Smartphone: [Xiaomi group] folding screen: [ Jiangsu Gian Technology Co.Ltd(300709) ] [ Wuhu Token Sciences Co.Ltd(300088) ]
