Huawei's R & D investment hit a record high in 2021. In 2021, Huawei achieved revenue of 636.8 billion yuan, yoy-28.6%, net profit of 113.7 billion yuan, yoy + 75.9%. In 2021, the R & D expenditure reached 142.7 billion yuan, accounting for about 22.4% of the annual revenue. According to the EU 2021 industrial R & D investment scoreboard, Huawei's R & D investment ranked second among global enterprises. Over the past decade, the company has invested more than 845 billion yuan in R & D. The future survival and development depend on the continuous strong investment in R & D. in the past few years, Huawei has carried out a lot of engineering and technological innovation in R & D. Huawei is strengthening the breakthrough and research of basic science and cutting-edge science. The R & D investment reached a record high in 2021. The company will continue to maintain high R & D investment in the future, optimize system architecture, improve software performance, explore theories, and build a highly reliable supply chain.
The business structure was adjusted and Hisilicon was upgraded to a first-class department. Hisilicon is positioned to provide end-to-end board level chip and module solutions for intelligent terminals, display panels, household appliances, automotive electronics and other industries, such as perception, connection, calculation and display, and undertake the responsibilities of R & D, marketing, ecological development, sales and service of chip and module industry. As can be seen from the 2021 annual report, Hisilicon has now become an independent tier one department tied with cloud computing and intelligent vehicle solution bu.
Some materials and processes are limited. Huawei chooses alternative methods to realize the original functions and strengthen non molar processes. For example, the RF unit power amplifier adopts gallium nitride, which reduces the energy consumption by 20% compared with LDMOS, and uses LCOS switching to promote the evolution of OXC optical switching technology. In terms of carbon neutralization, Huawei emphasizes the improvement of the efficiency of photovoltaic inverter, building intelligent photovoltaic generator and generating more electric energy under the same light. We see that GaN / SiC materials, IGBT / MOS devices, battery and thermal management technology are used in its power electronics technology.
In 2021, North American semiconductor equipment shipments hit a record high, and overseas semiconductor equipment manufacturers had full orders. We believe that the monthly sales of North American semiconductor equipment manufacturers are of great significance for the prosperity analysis of the global semiconductor industry and the tracking of the global semiconductor equipment market. In December 2021, the shipment amount of semiconductor equipment manufacturers in North America reached US $3.92 billion, slightly 0.5% lower than the monthly record high of US $3.93 billion in the final data in November 2021, but increased by 46.1% year-on-year. In 2021, the shipment amount of semiconductor equipment in North America reached US $43 billion, with a significant year-on-year increase of 44.3%. In addition, we combed the performance of the world's leading core equipment in the fourth quarter of 2021. The overall order demand is strong, and the short-term revenue is limited by the supply chain. It is expected that WFE will grow by about 10 ~ 20% in 2022.
We believe that the current or reproduction of the "scissors gap" between the last round of global semiconductor silicon wafer demand and supply in 20162018. In the last round of silicon wafer supply and demand imbalance, from 2016 to 2018, according to semi data, at that time, the price per unit area of silicon wafer increased by 33.5%, and the revenue and profitability of semiconductor silicon wafer manufacturers increased rapidly. We believe that this round of industry supply-demand imbalance is expected to reproduce the silicon wafer price rise caused by the "scissors gap" between silicon wafer supply and demand in the previous round. The recent revenue and performance expectations of leading silicon wafer manufacturers are strong. Under the background of limited new capacity, the price rise is an important revenue driver. At the same time, the newly added capacity of overseas leading enterprises is expected to start climbing in the second half of 2023, and the proportion of orders in the industry long-term association will increase. We judge that the current imbalance between supply and demand in the silicon wafer industry will continue until at least the end of 2023. From China's Taiwan silicon import data, we can see that in December 2021, the ASP imports of 12 inch and above were increased by 5.1% compared with January 2021, and the price increase in 2022 was more obvious. In February 2022, ASP was 13.2% higher than December 2021. Considering that the main wafer fabs of TSMC are located in Taiwan China, they have strong bargaining power as the global foundry foundry heads. Therefore, it is estimated that the global wafer price increase is highly deterministic.
Attach great importance to the unprecedented reconstruction and change of China's semiconductor and automobile industry pattern, as well as the leader of consumer electronics segment:
1) semiconductor core design: industrial opportunities such as optical chip, storage, simulation, RF, power, FPGA, processor and IP;
2) semiconductor OEM, packaging and testing and supporting service industry chain;
3) core target of intelligent vehicle;
4) VR, miniled, panel, optics, battery and other subdivision tracks;
5) core leading company of Apple industrial chain.
See investment suggestions on the last page for relevant core targets
Risk warning: downstream demand is less than expected; Sino US trade friction.
