Half-day turnover of more than 10 billion, the return of the chip leader king, the "hard innovation" era is coming?

華爾街見聞 ·  Jul 27, 2021 02:24

Source: Wall Street

Following the sharp rise in chip stocks against the market on July 26, chip stocks led the two cities again on July 27. SMIC, the leader of SMIC, rose more than 27% in two days, with a half-day turnover of 13.4 billion today. Suzhou solid technetium, A Shi Chuang, Jiang Hua Wei, Wentai Technology and other stocks rose by the daily limit.

On the news side, there are market rumors that Huawei's self-developed OLED screen driver IC chip has completed trial production and is expected to be officially delivered to the supplier by the end of the year. The OLED driver IC uses 40/28nm process and may eventually be handed over to SMIC for production.

In addition, the Shanghai Municipal people's Government recently formulated and issued the 14th five-year Plan for the Development of Shanghai's Strategic emerging and leading Industries, which is committed to further promoting the development of Shanghai's strategic emerging and leading industries. Core chips have become the focus of development.

The market is still short of cores.

According to Huaan Securities, chips are still in short supply.

The semiconductor manufacturers represented by Infineon and the downstream demand side represented by vehicle manufacturers all indicated in late July that the chip shortage would continue for a long time in the future.

Infineon CEO Pross previously pointed out that many industries are facing a chip shortage, but the automobile industry complains the loudest. He also expects that due to the tight production capacity of contract factories, the shortage of chips in some industries will continue for several months. and he said frankly that the increase in contract manufacturing prices will force Infineon's chip prices to rise.

In terms of wafer foundry, leading TSMC also reported that the prices of some 8-inch and 12-inch processes have increased by 10 to 20 percent, and the 12-inch process has increased by more than 8 inches, indicating that this round of semiconductor shortage is difficult to alleviate for a while, and the semiconductor boom continues.

Huaan Securities said that the current reporting period is approaching, and the semiconductor sector is expected to report each semiconductor due to the continued fullness of orders and rising prices since the fourth quarter of last year.

The performance of all sectors will maintain a level of ultra-high growth.

Focus on the three main lines of semiconductors

From the perspective of downstream demand, the rapid development of downstream areas such as fast charging of mobile phones, Type-C interfaces and other consumer electronics, two-wheeled electric vehicles, shared motorcycles, new energy vehicles PHEV/EV, photovoltaic wind power, industrial control alternatives and other downstream areas have promoted the sustained prosperity of semiconductors.

From the supply side point of view, the twists and turns of the epidemic since last year has brought many restrictions on the production capacity and logistics of overseas manufacturers. The domestic epidemic has taken the lead in controlling the epidemic, the supply-side competition pattern has been optimized, and the process of localization has been accelerated. And since 20Q4, the leading companies represented by MOS, diode, transistor and driver IC, MCU have started the price rise one after another. At present, large chip manufacturers are queuing up to increase prices to grab production capacity, and the production capacity of 8-inch and 12-inch wafers at home and abroad continues to be tight.

Huaan Securities believes that the annual performance of IDM and OEM, as well as semiconductor materials, is highly uncertain in 2021, and the boom is expected to last for the whole year. It is recommended that we should pay attention to the three main lines of semiconductors:

1) Power semiconductors that benefit from the burst of industry demand + product upgrade + domestic alternative logic.

2) the semiconductor manufacturers related to the data acquisition, data transmission and data processing of AIOT, including the semiconductor IC design leader with production capacity guarantee.

3) IDM and contract manufacturers with their own production capacity and their upstream materials and equipment manufacturers.

Shouchuang Securities pointed out that from the path of the development of the science and technology industry, the next few years will be the era of hard science and technology. Science and technology have developed successively, generally "hard three years, soft three years, and business model three years". The "soft innovation" of the Internet business model has come to an end, and formal and legitimate Internet business has been fully excavated. The future will be the era of "hard innovation" of hard technology represented by semiconductors.

Edit / lydia

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