With the deterioration of the external trade environment, domestic substitution in the semiconductor sector may accelerate. Semiconductor is more important than petroleum, and semiconductors with integrated circuits as the core are the cornerstones of the information industry. They are strategic industries related to the national economy and national security.
For a long time, China’s integrated circuits have relied heavily on imports, and the trade deficit has continued to expand. Each year, China imports more than 200 billion U.S. dollars worth of chips from overseas, which is roughly twice the amount of oil imported in 2016.
And more worrying than the huge import fee is that the chip relied heavily on the national information security and national strategic pressure brought about by the western developed countries. As the country's 'industrial food', the chip is almost the 'heart' of all equipment. If it blindly depends on Foreign products cannot be autonomous on the chip, and national information security will always be under threat.
In this year's government work report, integrated circuits were listed in the "Government Work Report" for the first time in the development of the real economy. The national government's emphasis on the industry is evident.
Some analysts believe that this trade conflict is directed at “Made in China 2025” and aims to limit the development of China’s high-tech and high-value-added areas. Prior to this, the State Council made a request in the report “Made in China 2025” that China’s chips by 2020. Self-sufficiency rate will reach 40%, and it will reach 50% by 2025. This means that China's integrated circuit industry will account for 35% of the world's total in 2025, that is, it will surpass the United States and be ranked first in the world.
IC industry backbone enterprises are also the focus of investment in industrial funds. Specifically, industrial funds have invested in manufacturing fields such as SMIC, Hua Hong Group, Changjiang Storage, Silan Micro (600460, stocks), etc., in the design field. Invested in Jingjiawei, Guokewei, Beidou Xingtong (002151, stocks), etc. The equipment field covers the North China Creation, Changchuan Technology, etc., and it has invested in Changjiang Electronics Technology (600584, stocks), Huatian Technology (002185) , Share it), Tongfu Microelectronics (002156, shares it) and so on.
According to statistics, at present, the industrial fund has been listed in the shareholders of 11 A-share companies. In addition, the industrial fund will also obtain equity by participating in the issuance of multiple companies.
Among many A-share companies, the proportion of shares held by China Industrial Micro, which currently holds industrial funds, is 15.79%, ranking the second largest shareholder in Tongfu Microelectronics, Beidou Xingtong, Sanan Optoelectronics (600703, shares), Zhaoyi Innovation. The shareholding ratio of the company also exceeds 10%. In addition, it holds 9.54% of Changjiang Electronics Technology, holds 9.32% of Jingfang Technology (603005, stocks), and holds 7.5% shares in North China Resources and Changchuan Technology.
The industrial fund will also participate in the additional issuance of companies such as Changjiang Electronics, Wansheng (603010, Shares), Jingjiawei, Jacques Technology (002409, Shares), Naive Technology (300456, stocks), etc. According to the issuance plan, after the issuance of the issuance, At that time, the Industrial Fund will hold Changjiang Electronics, Wansheng, Jacques, and Naiwei Technology no more than 19%, 6.13%, 5.73%, and more than 5% of the shares. The industrial fund will also be re-added to Tongfu Microelectronics. After the shares will hold 21.72% of the shares, promoted to the second largest shareholder.
In addition, the Industrial Fund also invested RMB 500 million in Xi'an, a subsidiary of Hua Tian Technology, and held 27.23% of Xi'an Company. The Industrial Fund is also one of the important investment shareholders of Silan Micro's production line, investing in Silan Micro's 8-inch production line. A total of 600 million yuan; Juhua shares (600160, shares it) plans to join a number of funds such as industrial funds, jointly funded the establishment of a joint venture company in the "core technology", the development of electronic chemical materials industry.
Under the traction of market demand and the promotion of national policies, the National Integrated Circuit Industry Fund (hereinafter referred to as 'the Industrial Fund') was established in September 2014. For A-share listed companies, the industrial fund plays a dual role in industrial support and financial investment. Roles, adopting the method of simultaneous promotion in the primary market and the secondary market. The investment projects cover the entire industrial chain of integrated circuit design, manufacturing, packaging and testing, and equipment, and help the leading players in the industry segment to enter the international echelon. Guide and promote The development of China's integrated circuit industry has also strengthened the strength of domestic semiconductor leading enterprises.
According to the data, by the end of 2017, the industrial fund has made a total of 67 projects for effective decision-making investments, and the accumulative project has committed a total investment of 118.8 billion yuan. In addition, the second phase of the industry fund is in full swing. It is reported that the second-stage fundraising of the industrial fund exceeds one. During the period, between 150 billion yuan and 200 billion yuan. According to the 1:3 ratio of incitement, the amount of social capital that was agitated was between RMB 450 billion and RMB 600 billion.
Regarding the investment direction of the second phase of the industry fund, Changjiang Securities (000783, stocks) research pointed out that IC (integrated circuit) is still the top priority, and domestic IC manufacturing companies will continue to face huge capital expenditure pressures in the next three to five years; The attention of IC design companies will increase. Along with the establishment of the second-phase industrial fund, more small and medium-sized design companies are expected to benefit. In addition, the coverage of the second phase of the industrial fund may extend downstream of the IC industry chain, downstream module manufacturers, and upstream materials. Manufacturers are likely to include investment.
In the annual report disclosure period, the investment of the industrial fund showed initial success, and the overall performance of the individual stocks on the layout was bright. The data showed that 3 out of the 18 listed companies of the industrial fund disclosed the 2017 annual report, and 8 disclosed the earnings report. 5 Home forecasted last year's annual performance.
Based on the combined annual report, performance report and median forecast, Super 70% achieved a year-on-year growth. Among them, Nasda, Juhua, Changjiang Electronics, and Zhaoyi Innovation’s net profit doubled year-on-year, and the company’s total net profit doubled year-on-year. Wei, Jingfang Technology, Sanan Optoelectronics, North Huachuang increased by more than 30% year-on-year.
North China Creation
The integrated circuit product line covers 20% (value) equipment for core manufacturing processes and continues to expand. Electronic components and products have steadily increased, providing stable income and profits; equipment technology and market continued to break through; LED, photovoltaic and other industrial equipment have been basically To achieve import substitution, IC process equipment under the special support of 02, continuous breakthroughs in research and development, etching machines, PVD, CVD, oxidation furnaces and other equipment has entered the mainstream of downstream manufacturers, is in the initial stage of import substitution, substitution rate gradually increased.
National Micro
The company's solid-state storage chip series of products satisfies the requirements of high reliability in the consumer and industrial markets. It solves the urgent need for autonomously controlled storage controller chips made in China and provides chip-level support for many domestic solid-state storage companies. Future-oriented new generation SSD controller chip products were also established during the reporting period.
Tongfu Microelectronics
The main raw materials required by the company for packaging and testing are lead frames/substrates, bonding wires, and plastic seals. The company's main raw materials are all supplied domestically, and the company has stable supply channels. However, the company has a high percentage of export business, and overseas customers have lead-free packaging. The main raw materials used in high-end packaging products must rely on imports. In 2015, 2016 and the first half of 2017, the company’s export sales accounted for 71.49%, 84.44%, 84.99%, respectively. Accounted for relatively high.
Mega Innovation
The company is currently the leading flash memory chip design company in mainland China. According to data from the China Semiconductor Industry Association, since 2012, the company is the largest local code design company for code flash memory chips in mainland China and the largest serial NOR Flash design company; according to TrendForce. Data, In 2016, the company's Nor Flash global operating income accounted for 7% of the market, ranking fifth in the world.