Overseas giants monopolize the global and Chinese markets
The remarkable feature of semiconductor equipment industry is that overseas giants form a high monopoly on the market in many fields. Due to the early start of development, equipment enterprises with more advanced technology have gradually grown into international giants in corresponding fields, such as ASML, applied materials, Tokyo electronics, Fanlin semiconductor, etc. Moreover, since western countries gradually formed an electronic technology industry chain with global market development power led by the United States after World War II, relevant leading enterprises were able to form a rapid development in market share, thus forming a strong customer stickiness to downstream wafer factories and a strong moat barrier to new entrants.
Domestic manufacturers’ breakthrough in multiple fields
At present, although the overall technical level of China’s equipment still lags behind that of the international leader to a certain extent, more prominent representative manufacturers have emerged in many sub fields Advanced Micro-Fabrication Equipment Inc.China(688012) is a leading enterprise specialized in the field of etching equipment in China Naura Technology Group Co.Ltd(002371) is a leading platform for China’s semiconductor equipment. It has both advanced technology and product comprehensiveness, and is relatively easy to get a rise in domestic alternative valuation. Shanghai microelectronics specializes in lithography equipment, and its technology has reached a relatively leading level in the middle and low-end field Kingsemi Co.Ltd(688037) is the main supplier of front gluing and developing equipment in China. Shengmei Shanghai and other enterprises have made important contributions to the field of semiconductor cleaning equipment in China. With its high global market share, Yitang semiconductor has gradually established an international leading position in the dry degumming equipment segment.
Domestic substitution is the core theme, and performance growth is the dividend of the times
Mastering the key technologies of various equipment used in manufacturing semiconductors is the primary premise to ensure the safety, robustness and autonomy of China’s scientific and technological development. Enterprises with strong technical level and comprehensiveness in multiple sub equipment fields are easy to obtain higher valuation expectation space in the capital market. Although the scarcity of technology has become increasingly prominent in the science and technology competition between China and the United States, the rapid development of many emerging science and technology fields in China’s downstream has also brought fast-growing market dividends to the upstream wafer manufacturing industry chain, which has become an important driving force for the continuous rise of the performance of relevant enterprises. At the same time, enterprises with strong domestic substitution attribute and performance growth momentum have strong fundamental support in the semiconductor equipment industry. It is expected that China’s science and technology manufacturing industry, which strives to break through in the big country game, will bring continuous action energy to relevant high-quality track companies.
Risk tips: US science and technology sanctions exceeded expectations, technological breakthroughs were less than expected, macroeconomic variables increased, and the impact of epidemic spread exceeded expectations
