Automobile demand leads SiC boom, and SiC substrate / wafer will continue to be in short supply: according to the latest report released by yole, it is expected that the market scale of silicon carbide devices will increase from US $1.09 billion in 2021 to US $6.297 billion in 2027, CAGR will reach 34%, and the market scale of automobile field will reach nearly US $5 billion by 2027, accounting for about 80%. In addition to automobiles, silicon carbide devices will also see a growth rate of more than 20% in industrial and energy applications. In 2027, the market scale will reach US $550 million and US $458 million respectively. According to the wind direction of the third generation semiconductor, Sanan Optoelectronics Co.Ltd(600703) it is estimated that the demand for 6-inch silicon carbide wafers in 2025 will be 3.65 million and 7.28 million respectively under conservative and optimistic conditions (including 2.19 million and 4.37 million in the automotive field), and the capacity gap will reach 1.23 million and 4.68 million respectively. The global silicon carbide substrate and wafer market will still be in short supply by 2025.
3M semiconductor coolant plant was forced to stop production, and the safety of global semiconductor manufacturing capacity should be paid attention to: according to Korean media businesskorea, 3M, the world’s largest semiconductor coolant manufacturer, was closed indefinitely due to the environmental protection policies of the Belgian government. The semiconductor coolant produced by the plant accounts for 65% of the global production capacity, which may lead to another impact on the already scarce global semiconductor manufacturing capacity. In this regard, TSMC, UMC and world advanced said they expected no serious impact and would work closely with the supply chain and replace it with other manufacturers. According to the economic daily, the global semiconductor coolant market is oligopoly, with 3M and Solvay accounting for about 80% and 20% market shares respectively. The two companies are applying for production expansion and are expected to start production in three months. If the production expansion goes smoothly, it is expected to alleviate the shortage concerns and ensure the normal production of the industry. Following the impact of semiconductor neon gas caused by the conflict between Russia and Ukraine, whether the pattern of excessive concentration of semiconductor coolant capacity is beneficial to the security of the supply chain, this event reminds the global wafer foundry.
Shanghai implemented batch sealing control, and many semiconductor factories announced shutdown: Shanghai has implemented zoning sealing control since March 28, and all enterprises have closed production or home office. According to the report of baineng cloud core, although semiconductor factories such as TSMC, riyueyue, Hejing, Huahong and Semiconductor Manufacturing International Corporation(688981) maintain normal production, the production line employees have to eat and sleep in the factory for up to four days, and many semiconductor manufacturers have announced a total shutdown. Tesla is scheduled to stop production for 4 days; Maolin stopped work from March 28 to March 31; Hong Kang implemented closed management and testing from March 28 to April 1; Pengyi stopped work from March 28 to April 1; Qili will stop work from April 1 to April 2 and will respond through shift adjustment. Although the short-term shutdown caused by the closure and control of the epidemic has not caused a major impact, we believe that we still need to continue to pay attention to the progress of epidemic control in Shanghai and the possible impact on the production and operation of semiconductor manufacturers.
Upstream wafer production capacity is tight, and LED driven IC starts a new round of price rise: according to experts, display, due to the slow growth of global 8-inch wafer production capacity and the continuous rise of upstream wafer prices, LED driven IC prices show a new round of upward trend. On March 29, Jichuang North announced that the tax inclusive price of all LED display drive products of the company would be increased by 5% – 20% on the basis of the current price, and Fine Made Microelectronics Group Co.Ltd(300671) also issued a product contact letter on March 31, indicating that all LED display drive products of the company would be increased by 10% on the basis of the current tax inclusive price. In the long run, the further expansion of wafer capacity is expected to alleviate the supply chain problem. Icinsights expects the global wafer foundry market to achieve a strong growth of 20% in 2022. Semi predicts that the world wafer factory capacity will reach 29 million pieces per month (8-inch equivalent) in 2023.
Shanghai Jita has added a large number of bidding, and Yitang and Zhongwei have won multiple equipment bids: according to the data of electronic trading platform for bidding and tendering of mechanical and electrical products, the bidding situation of semiconductor equipment this week (202203.28202204.01): Shanghai Jita has added 33 bidding equipment and 2 winning equipment this week, Shanghai Huali integration (phase II) has added 1 winning equipment this week, Huahong Wuxi has added 1 bidding equipment and 20 winning equipment this week, Fujian Jinhua added 1 set of winning equipment this week. In terms of domestic equipment, Beijing Yitang Semiconductor Technology Co., Ltd. won the bid for 7 plasma degumming machines and 1 rapid thermal annealing equipment (high temperature), and Zhongwei semiconductor equipment (Shanghai) Co., Ltd. won the bid for 3 passive film plasma etching machines, 7 oxide film plasma etching machines and 2 silicon nitride plasma etching machines.
Investment suggestion: recommend Starpower Semiconductor Ltd(603290) , Wingtech Technology Co.Ltd(600745) , and pay attention to Zhuzhou Crrc Times Electric Co.Ltd(688187) ; SiC pays attention to Phenix Optical Company Limited(600071) , Roshow Technoiogy Co.Ltd(002617) , Sanan Optoelectronics Co.Ltd(600703) , etc; Recommended recommendations for parts and components of materials and materials for semiconsemiconsemiconsemiconductor devices: recommended recommendations for parts and components of materials and materials for materials and parts of materials and parts of materials and parts for 60535 . LED display driver focuses on Shenzhen Sunmoon Microelectronics Co.Ltd(688699) , Fine Made Microelectronics Group Co.Ltd(300671) , etc.
Risk warning: downstream demand is less than expected; Domestic substitution is less than expected; Continuous risk of epidemic impact
