TSMC officially disclosed the second quarterly report on Thursday. Q2 was affected by the weakening of seasonal demand for smart machines. The single-quarter revenue increased 9% year-on-year to 233.3 billion Taiwan dollars (slightly over the market expectations of NT$230 billion). According to the guidelines, 7nm Q3 revenue is expected to exceed 10%, Q4 is expected to exceed 20%, and next year is expected to exceed 20%. We believe that 7nm share increase is mainly driven by iPhone A12 chip orders, TSMC as Apple's upstream core supply Business guidance exceeded expectations, is expected to lead the consumer electronics stocking cycle rebound! Focus on 'Dongshan Precision', 'Lixun Precision', 'Oufei Technology'! Benefit DRAM strong demand and boom cycle, Taiwan DRAM maker South Asia Branch revenue and profit Capabilities continue to steadily innovate! From the company's guidance, DRAM downstream demand is still strong, 4K, 3D identification, AI, AR and other smart machine micro-innovation continue to drive DRAM demand growth; AI drive data center memory demand continues to grow, TV 4K penetration rate Over 50%, IoT applications continue to create new demand. The price is expected to stabilize, Q3 expects prices to remain stable, up to 1~2%. Currently DRAM market has been more rational, generally does not appear
According to Xinhua News Agency, the second meeting of the Central Committee of Finance and Economics last week, the government's top management continued to emphasize 'actually improve the ability of key core technology innovations'! We have always stressed from the beginning of the year that under the current internal and external tensions, science and technology will not shake the country, semiconductor as the core Technology, the country's heavy equipment, and the subsequent allocation of resources are expected to continue to increase. It is expected to usher in a three-dimensional support that not only stops subsidies! This meeting focuses on planning a clear route for the goal of improving key core technology innovation capabilities. Figure! The semiconductor industry, especially in the manufacturing sector, has heavy asset attributes, capital expenditures and R&D investment demand. From the historical perspective of Japan, the rise of the Korean semiconductor industry, the 'power of the whole country' is indispensable, and the follow-up is expected to focus on the Korean model! Recently, the new IC industry strategy in Hangzhou has been introduced, and the support is unprecedented! The follow-up focuses on 'Slanwei', 'Changchuan Technology', 'Hikangwei', 'Silige Lijie' and other companies to benefit from it.
Core Recommendations and Logic. As the most strategic industry, ICs continue to intensify their efforts and do more. The Korean model is an important reference model. The Chinese have established a complete semiconductor industry system with independent core technologies. There is a faster move forward, driving manufacturing, equipment, materials and other breakthroughs. We firmly recommend at the bottom of the market, continue to be optimistic about the growth of the semiconductor sector! Suggested attention: Lead: Zhao Yi innovation, white horse combination: Sanan Optoelectronics, North Huachuang, Zhong Core International (Hong Kong stocks), Hua Hong Semiconductor (Hong Kong stocks), Jingjiawei, Yangjie Technology, Silan Micro, Shengbang Shares, Precision Electronics, small and medium-sized market portfolio: to pure technology, Jingrui shares, Fuman Electronics. We also recommend to pay attention to: Quanzhi Technology, Zhonghuan, Zhongying Electronics.
Risk warning: The progress of localization is not up to expectations, and the downstream demand of the industry is not up to expectations.