Fu Cheng, head of Wenzhi Corecheng Semiconductor Fund, told reporters that most of the semiconductor products in the A-share market are currently used in the field of consumer electronics. They do not involve technologies that are scarce in China, and are less affected by the overseas environment. Companies that monopolize technology from foreign giants stay in the early stages of growth and growth.
Looking at China's entire semiconductor industry, supply and demand mismatch, relying on imports is undoubtedly a major concern. In this context, the semiconductor industry is supported by a number of government support policies and capital support from national and local funds. This also allows most companies and capital. 'Smell the wind and move', get together in the semiconductor industry.
How to identify the projects that really grow and accurately grasp the investment opportunities, then test the investment ability of the semiconductor investment community. Jiangsu Private Investment Holdings Co., Ltd. (hereinafter referred to as 'Su Mintou') President Hu Ying and Fu Cheng in the interview with the first financial reporter It is mentioned that the development of import substitution technology in the semiconductor industry has become a trend. Among them, whether it is upstream raw materials or products applied to downstream products, if there is substantial development and meet domestic needs, there are investment opportunities.
The pain point is the blue sea
At present, in the A-share market, there are 33 listed companies in the semiconductor industry segment of the Shenwan-level industry, mainly involving three major segments of integrated circuits, discrete devices, and semiconductor materials. 26 of them disclosed 2018. The mid-year report predicted that 18 companies had a good performance.
Among the 33 companies, Weir shares first disclosed the 2018 interim report. The company achieved a net profit of 156 million yuan in the first half of this year, exceeding the net profit for the whole year of last year. The company is mainly engaged in the design, sales and distribution of semiconductor products. , products used in mobile communications, automotive electronics, security, network communications, household appliances and other fields.
Fucheng said that most of the chip companies in the A-share market that cover the consumer electronics sector do not involve technologies that are currently scarce in China. On the other hand, the downstream industry chains of these companies are basically domestic, and domestic. The electronics manufacturing industry is relatively developed, so it is not affected by the overseas trading environment.
However, this is not the whole picture of China's semiconductor industry. According to the analysis of semiconductor equipment, the chairman and general manager of Shanghai Wei Test Semiconductor Technology Co., Ltd. said that the wafer manufacturing equipment is basically 95% imported, and 90% of packaging equipment is imported. The equipment is 80%; among them, 20% of the test equipment is mainly for low-end equipment, and high-end equipment is 100% imported. It is understood that the semiconductor equipment chain is mainly concentrated in wafer preparation, wafer processing, packaging testing. Link.
According to Shen Wan Hongyuan Machinery Group analysts, because the manufacturing process of the integrated circuit industry requires a variety of equipment to work together, and high-precision equipment such as lithography machines are extremely expensive, making semiconductor equipment the largest investment in the industry chain, accounting for the total industry. The expenditure is close to 80%.
'In terms of market share, in the manufacturing process of integrated circuits, the domestic market share in packaging should account for 20% to 30% of the world's total, and the market share of wafer manufacturing accounts for about 10% globally.' Yan Wensheng introduced that China's packaging is relatively more compatible with the international market in terms of production capacity and technology. In the semiconductor industry chain, the concentration of enterprises in domestic packaging is relatively high.
Shen Wan Hongyuan Machinery Group analysts pointed out in a recent report that China's semiconductor market demand accounts for 30% of the world. In 2017, IC imports exceeded US$260 billion, and imports amounted to 400 billion pieces. It is China's largest import product, but supply and demand are serious. Mismatch, the current high-end technology is still monopolized by foreign leading companies, import substitution is imperative.
'The vast majority of domestic entrepreneurial teams want to do import substitution technology. Those technologies are still monopolized by foreign giants. This is an opportunity for them, but these companies are still far from the stage of listed companies, and still stay. In the early stages of gestation and growth. 'In Fucheng's view, there are big opportunities for these companies, but it is also a challenge, depending on some product areas with high industry barriers. Whether these domestic enterprise teams can make similar products comparable to those of foreign countries, can they meet domestic demand, because domestic manufacturers are originally purchasing imported chips.
Pulse investment opportunity
Faced with the urgent need for 'integration of integrated circuits', the current Chinese semiconductor industry has been promoted by the government's multiple support policies, the National 'Big Fund' (National Integrated Circuit Industry Investment Fund) and local industry funds. Excellent local enterprises, initially established a relatively complete semiconductor industry chain.
In this process, the semiconductor industry also ushered in investment heat. Hu Ying said in an interview with the First Financial News that the investment environment of the semiconductor industry has changed compared with the previous one, but the investment environment of different provinces and cities is different. The preferential policies given, as well as the support funds, on the other hand, the investment capacity should match the local industrial resources.
In response to changes in the investment environment, Hu Ying said that for a mature investment team, the investment philosophy will generally persist for a long time, and will not change in the short term, but the investment strategy may change in different situations.
It is understood that Sumin Investment was officially listed in June 2016, and its industrial layout has been carried out in strategic emerging industries such as smart manufacturing, new materials, and semiconductors. Among them, in the semiconductor industry, in February 2017, it invested in GaN enterprise Jiangsu Nenghua. Microelectronics Technology Development Co., Ltd., invested in Shanghai Wei Test Semiconductor Technology Co., Ltd. in July this year, and will cooperate with Fucheng as the core equity investment team to launch the Wenzhi Core Semiconductor Industry Fund, which will be positioned in the semiconductor industry. Medium-term investment in light assets.
'Now everyone feels that the state supports the semiconductor industry. Many industrial projects and capitals are getting together. Some companies are obviously not semiconductors, but also semiconductor projects, but this is also a two-way choice. 'Fucheng said that people who really invest will Choosing high-quality projects, companies that truly do industrialization will also choose high-quality investors. 'This is a process of falling in love with marriage. It is not easy to imagine that everyone will mess up the market and truly do business. Those who make investments will choose advantages and advantages.'
For the future investment opportunities in the semiconductor industry, Fucheng analysis said that on the one hand, from the application point of view, the country's vigorous development of 5G communications, Internet, artificial intelligence and big data applications, the support behind the chip is essential, relevant Products have investment opportunities, but there are also many companies that are arranging such a banner in these areas. When investing, they need to be carefully screened. On the other hand, upstream, upstream manufacturing, technology, equipment, services, software technology, Including raw materials, special gases, special liquids, bulk gases and other related aspects, there are actually many opportunities in the semiconductor field.
In the case of chemicals, Fucheng said that in the semiconductor manufacturing process and in the packaging and testing process, there are about 150 to 200 kinds of chemicals to be used together, 99% of which depend on imports. Three to five years have been restricted, 'The investment opportunities we see are traditional chemical plants introducing new teams, transforming into electronic grade, semiconductor-grade chemical plants, and semiconductor manufacturing fields with huge import substitutions. Opportunity' .