Key points of the report:
Semiconductor core equipment, high-quality business model, high gross profit margin, semiconductor test equipment has a wide range of application fields, running through the core links of semiconductor design, production and sealing test process, and the market demand is huge. According to semi statistics, the global semiconductor test equipment market will be US $6.01 billion in 2020, is expected to reach US $8.03 billion by 2022, and CAGR will reach 16% in the next two years. The tester is the core equipment of the rear test equipment, with the largest proportion of structure (nearly 70%) and high technical difficulty. Its product characteristics are different from traditional semiconductor equipment, with the combination of software and hardware. The core is software algorithm, so it has strong customer stickiness and high profit quality (the gross profit margin of China’s top enterprises reaches more than 70%).
Cost reduction and efficiency increase, downstream rise and low market share drive the continuous growth of domestic testing machines
Based on multiple factors such as downstream core shortage, production capacity safety and process supporting, sealing and testing manufacturers and IC design companies continue to expand production, and the prosperity of the industry remains high at this stage. We should pay more attention to the continuous cost reduction and efficiency enhancement of Chinese high-quality products for downstream customers in the field of semiconductor testing machines. At the same time, the rise of Chinese design companies will continue to give Chinese tester manufacturers good opportunities for development. From the perspective of pattern, at this stage, overseas giants are still in an industry monopoly position (CR2 > 90%), but Chinese companies have made breakthroughs in multiple product segments and formed industry advantages in some fields, providing a product basis for subsequent customers to continuously reduce costs and increase efficiency.
Chinese manufacturers: continue to expand high-end categories and consolidate China’s sailing overseas
Category expansion and regional expansion are the main development paths of China’s high-quality testing machine manufacturers. On the one hand, China head company has taken the lead in breaking through the power simulation testing machine and forming a market dominant position, and continues to promote SOC and storage products with larger market space and higher single machine value. On the other hand, based on the Chinese market, Chinese high-quality companies use the advantages of high cost performance and high-quality service to gradually expand their products to the global market.
Investment advice
It is recommended to pay attention to high-quality companies in the field of testing machines: Hangzhou Chang Chuan Technology Co.Ltd(300604) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) .
Risk tips
The prosperity of the industry has declined sharply; The research and development of new category testing machines did not meet expectations; Overseas expansion was lower than expected.
