Hillhouse is here! Emergency launch of the science and technology track special fund the third generation semiconductor capital has greatly bottomed out.

Recently, the chip continues to dominate A shares, a lot of attention is focused on the third generation semiconductors.

In fact, after the third-generation semiconductor industry was included in the 14th five-year Plan, semiconductor development has become the key word of this year. In the primary market, venture capital institutions have increased their size one after another.

Zhou Taiping, an expert in information and communication technology, told Science and Technology Innovation Board Daily that the importance of the third generation semiconductor technology is self-evident, which promotes the development of society from an information society to an intelligent society.

"most of the domestic third-generation semiconductor enterprises are small and medium-sized enterprises, and their technological level may be in the lead in the world, and the market prospect is inestimable. however, if they want to dominate the market, especially to compete with international giants, they still need the protection of policy and capital. "Zhou Taiping said.

Sequoia, IDG and Takahashi showed up.

Data show that since 2020, the semiconductor sector has ushered in an investment boom.

Dr. Li Junchao, investment manager of Yunxing Capital, said in an interview with Science and Technology Innovation Board Daily, "from the perspective of the layout of venture capital institutions, a large amount of money has been invested in hot areas such as semiconductor manufacturing, data mining, intelligent cars, and so on. Among them, large chip leading enterprises and subdivided track head enterprises obtain multiple resources such as funds, talents, customers and so on. "

Of course, this is also divided into early casting and post-casting. "different types of institutions invest in different links. Generally speaking, after the completion of the early investment, investment institutions will help enterprises introduce customers, recruit teams, introduce the next round of investors, and so on. " Li Junchao said.

In this context, in a market venture capital institution, many US dollar funds that did not invest in semiconductors have joined the semiconductor investment army one after another.

Zhao Zhanxiang, managing director of Yunqi Capital, said that dollar funds can be seen in many semiconductor projects, such as Sequoia, IDG, Qiming, Source Code, Red Dot, Hillhouse, Speed of Light and so on.

"especially in 2021, venture capital institutions have made great progress in the field of semiconductors. In the investment boom, many financing projects with a financing amount of more than 500 million have emerged. Zhao Zhanxiang said that specifically, a small number of large projects attracted 60% of the financing.

According to Yunxing Capital statistics, in the past year, 534 semiconductor companies in the market received financing, with a total financing amount of 153.6 billion; among them, 46 large projects with financing amount more than 500 million, accounting for only 8.6% of the total, but the total financing amount reached 99.2 billion, accounting for 64.6% of the total financing amount, the leading effect is obvious.

Behind the heat in the semiconductor field, Hillhouse Capital held a rare roadshow on June 21. In the roadshow, Hillhouse Capital believes that integrated circuits and semiconductors are the tracks with the longest track, the most opportunities and the highest requirements for investment, which can be divided into three major directions: vehicle semiconductors, high-performance computing semiconductors and power semiconductors.

"in the field of semiconductors, Chinese companies will be able to make hundreds of billions or even trillions of unicorns in the future." Hillhouse Capital said. It is reported that Hillhouse launched a special fund for science and technology racing, mainly investing in semiconductors, cutting-edge technology, new energy, intelligent hardware and other fields.

Strong support from national funds and industrial funds

SkyEye survey shows that as of June 21, 2021, there are more than 90,000 semiconductor-related enterprises and 554 enterprises with financing information.

From the perspective of subdivision, semiconductor design companies are the focus of investment, and the upstream of the industry is also paid more attention to by capital. By comparison, it is found that the proportion of investment in materials and equipment was 13% in 2019, but it has increased to 19.2% by 2020.

Behind the increase in investment in venture capital institutions, Science and Technology Innovation Board has also become the capital stage of the semiconductor leader. The latest news shows that the semiconductor IP manufacturer Chengdu Ruicheng Micro Kechuang Board IPO.

A reporter from Science and Technology Innovation Board Daily noted that among the listed semiconductor companies, many institutions, such as the National Integrated Circuit Industry Investment Fund, Walden International, Xiaomi Yangtze River Industrial Fund, SMIC Juyuan, and Shenzhen Venture Capital, have given great support to China's semiconductor industry.

Among them, the National Integrated Circuit Industry Investment Fund is a "national brand" investment fund, which focuses on the integrated circuit chip manufacturing industry, taking into account chip design, packaging and testing, equipment and materials and other industries. Among the disclosed public information, companies in the semiconductor field, such as China Resources Microelectronics, Tailing Microelectronics, SMIC Southern, Stevie Electronics, Epike Microelectronics, Hanmian Technology and so on, have all been invested by this large fund.

The Xiaomi Yangtze River Industrial Fund, which is the main business of Xiaomi Group, is also doing the same action. Yizhao Microelectronics, Express Semiconductor, Nan Core Semiconductor, Xinmai Semiconductor and other core companies have been favored by Xiaomi Yangtze River Industrial Fund.

Established venture capital institutions-deep venture capital is not to be outdone, core technology, SMIC, Jevatt microelectronics, core song technology and other companies have all been included in the bag.

In addition, the industrial funds under the large groups are also actively around the upstream and downstream layout of the industrial chain.

Take BAIC Industry Investment Fund as an example. Since the beginning of this year, it has respectively invested in Feiji Semiconductor, Tongguang Crystal, and domestic new material enterprise YuNeng technology. In June 2020, BAIC Industry Investment Fund also appeared in the 800 million yuan financing of BYD Semiconductor A+ round.

SAIC Group's Shangyi Capital and Hengxu Capital have invested in Xinwang Microelectronics and Hanmian Technology to improve the demand in the upstream sector.

Huawei, which was "stuck in the neck", quickly set up Hubble Investment and launched a series of investments in the semiconductor field. So far, Hubble has focused on investing in excellent companies such as Stevie, Dongwei Semiconductor, Xinyao Semiconductor, Yuanjie Semiconductor, Zhongkefei Test, Zhenghui Xinguang and other excellent companies. On June 2, Hubble Investment entered the field of lithography in an attempt to break through the technical bottleneck.

It can be seen that, as the private equity fund or industrial fund under the group, they all use it as a window to link the external high and new technology, and make a close layout around the upstream and downstream of the industry. On the other hand, government funds such as the National Integrated Circuit Industry Investment Fund and Deep Venture Capital are mainly used to support and support the industry.

In the face of the upstream and downstream layout of the group's funds, Dr. Li Junchao, investment manager of Yunxing Capital, believes that "at present, the most promising application field of the third generation semiconductors is new energy vehicles, because the improvement in power-saving effect significantly improves the mileage."

It is reported that silicon carbide in third-generation semiconductor materials has reduced inverter weight by 57 per cent, increased battery life by more than 6 per cent, and reduced vehicle costs by $2000 using silicon carbide. Some insiders estimate that only Tesla consumes an average of about 500000 pieces of 6-inch silicon carbide a year, and there is a huge demand for silicon carbide for cars in the future.

A large number of head companies have become the target of pursuit.

The booming semiconductor sector has also been separated from the support of management. In order to seize the strategic opportunity of the development of the third generation semiconductors, the management not only increases the strategic guidance of the industry, but also provides a variety of preferential support policies in terms of fiscal and tax policies.

Behind the increasing amount of investment, the layout of the third-generation semiconductor industry chain has been initially formed, but does it take off in parallel?

Zhou Xibing, a Huawei research expert and author of Huawei internationalization, points out that in the third-generation semiconductor investment boom, although there is tax, policy, talent, capital and other support, such behavior is market behavior after all.

In Zhou Xibing's view, especially on the capital side, capital investment is ultimately required to make a profit, which will eliminate a large number of speculators in the process of competition, but in the end, this round of investment will bring opportunities for the survival and development of some industrial enterprises in China.

"on the one hand, the investment boom has not only activated the market, but also met China's massive demand. Second, the fatal crackdown by the United States has undermined its confidence in completely monopolizing the upper reaches of the world supply chain, and various countries have made corresponding investments in the crisis, resulting in a decline in the price of third-generation semiconductor materials. so that the Chinese-made supply chain has more controllable sources of raw materials. Third, in the layout of Huawei, ovm and other Chinese enterprises, the breakthrough of the third generation semiconductors will also become inevitable. Zhou Xibing analyzed to the reporter of Science and Technology Innovation Board Daily.

In view of this analysis, Zhou Xibing believes that with the elimination of a large number of speculators, there are also a number of enterprises that are really engaged in industry after they are eliminated on the issues of shortage of funds, policy changes, talent dilemma, and so on. China's third-generation semiconductor industry can usher in a real spring.

Similarly, information and communication technology expert Zhou Taiping also said that China's scientific and technological wisdom will create all kinds of achievements, and enterprise competition in an appropriate environment is conducive to the formation of modern scientific and technological enterprises with international strength and the survival of the fittest.

Based on this, Dr. Li Junchao, capital investment manager of Yunxing, believes that venture capital institutions will relatively pay attention to the head companies with large income in the future.