The bank stated that in 2017, the global foundry industry achieved a total revenue of 57.3 billion U.S. dollars, a year-on-year increase of 7.1%. With the rising demand for Internet of Things, automotive electronics, and HPC, the bank believes that the foundry market will continue to grow. .
According to the report, there is currently a possibility that TSMC’s unique industrial structure will be broken, and the second giant will appear. Breaking the monopoly of advanced manufacturing processes is in line with changes in the demands of customers' interests. The mainland’s undertaking of the transfer of the semiconductor industry has brought about a great development environment. The national strategy for the localization of integrated circuits brought about strong policy support; SMIC's active deployment of top-notch manufacturing processes has locked the foundry's core competitiveness. The company's upstream and downstream layout of TSMC's industrial chain has laid a foundation for comprehensive competitiveness.
In addition, Guotai Junan stated that the company’s revenue, gross profit margin, and capacity utilization rate continued to rise in the first quarter of 2018. The bank believes that the company has outperformed its performance in the second half of 2017. By comparing SMIC and BOE , Refer to BOE's track of success. The bank believes that SMIC will maintain a high level of R&D investment with the support of large funds, and it will be rain-proof on the international advanced path.
At the same time, SMIC also pays attention to mature processes and customized applications. SMIC’s revenue growth in CIS and NORFlash applications increased by 70% in 2017, and there are also active layouts for NAND Flash, BCD, power management and Internet of Things applications. , Mature process has become stable performance of the ballast stone.