On July 29, Huawei will hold its flagship new product launch, which is expected to include many new products in addition to Huawei's P50 series. Huawei is expected to release three smart screens equipped with MINILED at this press conference, namely, S55Pro, X75 and V98. Earlier, Apple unveiled its new iPadPro at its spring launch with a MiniLED backlit display screen and more than 10, 000 MiniLED,2500 local dimming areas. It has the extreme dynamic range, the contrast is up to 1000000 1, the full screen brightness is 1000 nits, and the peak brightness is as high as 1600nit.
The MiniLED market is expected to become an important bright spot in the consumer electronics sector in the second half of the year. The advantages of MiniLED backlight include: light and thin, power saving, high brightness and high contrast, wider color gamut, 3-5 times higher peak brightness (higher than 1000nit), longer display life than OLED, and lower cost than OLED. Under the guidance of Apple, Samsung and other manufacturers, with the reduction of the cost of MiniLED, the penetration of MiniLED will increase rapidly, becoming an important choice for high-end TVs, e-sports NB, tablet creation and other application scenarios. Other TV manufacturers such as Android and TCL represented by Huawei are also expanding the MiniLED,Mini market and are expected to take the lead in the high-end large-screen display market.
From the application point of view, MiniLED is divided into two directions: RGB direct display and backlight. The backlight application is growing rapidly, and the direct display market is still facing cost constraints. From the perspective of the industrial chain, MiniLED is divided into upstream equipment, chips and epitaxial wafers, mid-stream packaging, downstream applications and other links. The targets with greater flexibility in the industrial chain include: Xin Yichang (171.00 + 5.80%, diagnosis stock) (equipment), San'an Optoelectronics (42.88 + 5.02%, diagnosis unit) (chip), Ruifeng Optoelectronics (13.60 + 1.12%, diagnosis stock) / Hongli Zhihui (14.31-0.83%, diagnosis stock) (package), Chau Ming Technology (9.82 + 1.55%, diagnosis stock) (application), Pengding Holdings (39.03 + 4.58%, Diagnosis stock) (PCB), Lixun precision (40.53 + 1.83%), diagnosis stock) (SMT) and so on.
Semiconductors: the trend of core shortage may be difficult to alleviate in the past year or two, and the revenue outlook of ASML in the third quarter is much better than market expectations.
The shortage of chips is difficult to solve in the short term. Intel reiterated that due to the long time it takes to climb the production capacity of the semiconductor industry, the shortage of chips may continue until 2023, and believes that the next 10 years will be a golden period for the development of the semiconductor industry. ASML pointed out that the supply of chips in the automotive industry may recover quickly, and it is also difficult for mainland China to undertake the supply and demand that cannot be met in Taiwan, driving the rapid growth of the semiconductor industry in mainland China, and predicts that the next area facing supply constraints will be the smartphone industry. Global wafer factories continue to expand production to seize the opportunity of this round of core shortage, while also helping ASML's revenue outlook for the third quarter to be much better than market expectations.
On July 21st ASML released its third-quarter revenue outlook, which is expected to reach 52-5.4 billion euros, beating market expectations of $4.69 billion. We believe that the high profile of the semiconductor sector will continue, and the imbalance between supply and demand in the global chip market may continue until 2022, and related equipment, materials, wafer suppliers and other supply chains will also benefit.
Equipment and materials: lattice core announced the re-establishment of a wafer fab to cope with insufficient production capacity, and continued to be optimistic about the localization of semiconductor materials and equipment.
On July 20th, GE Core announced plans to expand its state-of-the-art manufacturing plant in New York over the next few years, including immediate investment to address the shortage of capacity at its existing Fab8 plant, while doubling the plant's capacity by building a new fab in the same park. In addition, GE Core will invest $1 billion to immediately add 150000 wafers a year to existing fabs to help solve the global chip shortage. At present, the global semiconductor industry is facing the problem of "lack of core". In order to increase production capacity, wafer foundry, including TSMC and SMIC (68.10 + 19.11%, diagnosis unit), have vigorously announced plans to build a new production line. We are optimistic about upstream semiconductor materials and equipment, and recommend semiconductor material end: Silicon wafer (Shanghai Silicon Industry (37.30 + 15.96%, diagnosis stock), Lion Micro (180.35 + 9.63%, diagnosis stock), Central stock (49.86 + 1.40%), diagnosis stock)), photoresist (Jingrui stock (52.94 + 19.99%, diagnosis stock), Tongcheng Xincai (69.90 + 8.62%, diagnosis stock));) Equipment side (micro company (225.05 + 5.71%, diagnosis unit), core source micro (296.10 + 9.36%, diagnosis unit), to pure technology (62.93 + 2.93%, diagnosis unit)).
Passive components: the order of the industry is full and the list is tight, and the domestic leading production capacity is expanded, which is beneficial to the further thickening of the performance of domestic manufacturers.
Recently, the Malay epidemic continues to intensify, and a number of large factories of Japanese passive components have stopped work. The continuous mismatch between supply and demand brings a new round of resistance, capacitance and inductance. Ai Hua Group, a large domestic passive components manufacturer (35.50 + 0.23%, diagnosis unit), said that the supply outage in overseas supply chains and the steady increase in market demand led to a good order situation, and the scheduling of highly customized products such as aluminum capacitors and thin film capacitors was particularly tight. At present, Aihua Group is full of orders, and the order period has increased from 3 months to at least 4 months. Other leading companies in the industry are also affected by the high-profile demeanor of the industry, and the capacity utilization rate is close to 100%. Recently, the domestic passive components leader ushered in a new wave of production capacity release, price increases continued. Since the beginning of June, the product prices of Capacitor leading Fenghua Hi-Tech (38.86 + 3.87%, diagnosis unit), Sanhuan Group (48.04 + 1.14%, diagnosis stock) and inductance leader Shunluo Electronics (40.76 + 1.31%, diagnosis stock) have increased by 44%, 28% and 26% respectively. In addition, the production line continues to advance.
This month, Fenghua Hi-Tech High-end Capacitor Base Phase I project is put into production, is expected to reach production in October this year, when the monthly production capacity of 5 billion high-end capacitors will be added. Part of the new plant in Dongguan is expected to be put into production in August, Shunluo said. We believe that the expansion of domestic production capacity will help leading companies to further increase their market share, and the rising prices of components such as capacitors and inductors in China will continue. Novel coronavirus epidemic provides domestic alternative acceleration window period, affected by the difficult replacement of major customer suppliers, it is expected that the increased market share of domestic manufacturers is sustainable, and is optimistic about the domestic capacitor leading Sanhuan Group and Fenghua Hi-Tech. The performance of Shunluo Electronics, the leading inductor, increases with the expansion of production capacity and high capacity utilization.
Recommended attention: semiconductor (Shengbang shares (310.95 + 8.58%, diagnosis stock), Thrypool (638.50 + 8.50%, diagnosis stock), Shilan Wei (74.29 + 9.08%, diagnosis stock), Zhaoyi Innovation (220.62 + 10.00%, diagnosis stock), Xinpengwei (146.87 + 5.92%, diagnosis stock), Lan Qi Technology (71.55 + 6.74%, diagnosis stock), Jingchen shares (134.23 + 2.51%, Diagnosis stock), Weir shares (318.65 + 9.72%, diagnosis stock), Zhuo Shengwei (452.02 + 7.86%, diagnosis stock)),) Consumer electronics (GE shares (39.44% + 0.28%, diagnosis unit), Lixun Precision, Changying Precision (19.12 + 4.20%, diagnosis stock)), passive components (Shunluo Electronics, Sanhuan Group, Fenghua Hi-Tech), equipment (medium and micro companies, core micro, to pure technology), materials (Shanghai Silicon Industry, Liangwei, Central shares, Jingrui shares, Tongcheng new materials).
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