The global foundry market continues to grow. According to IC insights, in 2021, the global wafer foundry market reached US $110.1 billion, with a year-on-year increase of 26%, and the compound annual growth rate from 2016 to 2021 was 11%. IC insights predicts that the global wafer foundry market will reach US $132.1 billion in 2022, an increase of 20% over 2021. According to trend force data, the total revenue of the world’s top ten wafer foundry in 2021q4 reached US $29.55 billion, an increase of 8.3% month on month, a record high for ten consecutive quarters.
The Asia Pacific region has become the main foundry region. 2021 Q4 the world’s top ten foundries account for 98% of the global market share, including 8 in the Asia Pacific region, and the total revenue accounts for more than 90% of the top ten foundries.
Wafer foundry capacity continues to be fully loaded, and the imbalance between supply and demand is difficult to improve in a short period of time. Although the major wafer foundry actively increased investment to expand production, the new production capacity has been covered by the existing contract, and the new factory project still needs some time to be put into operation. In order to cope with the shortage of chip supply, chip manufacturing companies have significantly improved the utilization of existing capacity. Since Q2 2020, the utilization rate of existing capacity has reached more than 90%.
The Chinese mainland’s acting factories are brilliant. In the 20142021 year, the Chinese mainland market share of wafer foundry has been steadily improved. In 2021, the Chinese mainland accounted for 8.5% of the global wafer foundry market, up 11.8% over the same period last year. 2021 Q4, the world’s top ten foundry manufacturers, Chinese mainland manufacturers occupy three, Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor, and crystalline integration occupy fifth, sixth, tenth.
The market of electronic sector is weaker than the market
From April 11 to April 15, the Shanghai Stock Exchange fell by 1.25% and the electronic sector fell by 4.24%, outperforming the market by 2.99 percentage points. Year to date, the Shanghai index fell 11.77%, CITIC electronics fell 31.56%, outperforming the market by 19.79 percentage points.
Increase in electronic industry segments
From April 11 to April 15, there was no rise in the segments of electronics industry. Year to date, the electronic industry segments are negative returns.
Rise and fall of individual stocks: A shares
From April 11 to April 15, the top five companies in the electronics industry were Shenzhen Chuangyitong Technology Co.Ltd(300991) , Hai Shen Zhen Australis Electronic Technology Co.Ltd(300940) , Shanghai Fullhan Microelectronics Co.Ltd(300613) , Yingtong Telecommunication Co.Ltd(002861) , Guangdong Kingshine Electronic Technology Co.Ltd(300903) , up 14.61%, 11.48%, 6.76%, 5.55% and 5.41% respectively.
Investment advice
It is recommended to pay attention to Hubei Dinglong Co.Ltd(300054) , Hangzhou Lion Electronics Co.Ltd(605358) , National Silicon Industry Group Co.Ltd(688126) , Konfoong Materials International Co.Ltd(300666) , etc.
Risk tips
The development of the industry is less than expected, and the downstream demand is less than expected
