Semiconductor Industry Research Weekly: power semiconductors are in short supply and continue to set sail with silicon carbide [agency review]

An overview of this week's market:

The semiconductor market outperformed the main index this week. This week, the Shenwan semiconductor industry index fell 3.70%, over the same period, the gem index fell 5.59%, the Shanghai Composite Index rose 3.02%, the Shenzhen Composite Index fell 0.78%, and the small and medium-sized board index fell 1.19%. The semiconductor industry index outperformed the main index.

Most of the semiconductor segments fell. In the semiconductor segment, the closed test plate is up 0.8% this week, the semiconductor manufacturing plate is up 0.6% this week, and other sectors are down 0.3% this week. IC design is down 2.6% this week, discrete devices are down 3.8% this week, semiconductor materials are down 4.1% this week, and semiconductor equipment are down 8.4% this week.

A number of overseas power semiconductor companies have released the latest results. The overall month-on-month ratio remains strong, a number of companies are fully booked for the whole year, and we expect supply to fall short of demand. Benefiting from the high demand for silicon carbide driven by new energy vehicles, a number of companies are actively expanding SiC production capacity and are optimistic that the downstream drivers of SiC will continue to increase in the future. IGBT+SiC benefits from the rapid growth of new energy demand. It is suggested that we should pay attention to the relevant enterprises that have achieved a 0-1 breakthrough and grasp the opportunity of downwards localization in our country.

1. Infineon: 2022Q1 performance grows rapidly, SiC doubles in 2021

The performance of 2022Q1 is growing rapidly, and the net profit margin of gross profit margin is increasing rapidly. February 3, the industrial semiconductor leader Infineon released 22Q1 financial results, the company's financial data continued to highlight the performance. According to the disclosed data, the company achieved revenue of 3.159 billion euros in the first quarter of fiscal 2022, up 5% from the previous quarter and 20% year-on-year; profit reached 717 million euros, up 16.4% from the previous quarter; profit margin was 22.7%; free cash flow reached 378 million euros. Gross profit margin also rose to 41.2% from 39.1% in the previous quarter. Silicon carbide revenue has doubled and will continue to grow at a high momentum in 2022. Infineon's SiC revenue in fiscal year 2021 increased by 100% to more than 1.3 billion yuan. SiC revenue in fiscal year 2022 is expected to grow by 90% to more than 2.4 billion yuan. The company predicts that by around 2025, silicon carbide revenue will reach 6.4 billion yuan, accounting for 30 per cent of the global market share.

two。 On Semet: 2021Q4 hits a record high, SiC capacity continues to expand

The automobile and industrial business is growing at a high speed, and its share is constantly increasing. On announced its results for the fourth quarter and full year of fiscal 2021 on Feb. 8. According to the financial report, on Senmei's revenue for fiscal 2021 was $6.74 billion, up 28.3% from a year earlier. Of this total, 21Q4's revenue is $1.85 billion. Automotive and industrial businesses contributed 63 per cent of the company's 21Q4 revenue, totaling about $1.163 billion, a year-on-year growth of 35 per cent. In 2022, the performance continues to be optimistic, and SiC production capacity continues to expand. In the first quarter of fiscal 2022, on expects capital expenditure of about $1.5 billion to $170 million to expand 12-inch silicon production line capacity and quadruple SiC capacity by 2022.

3. Italian and French semiconductors: 2021Q4 revenue exceeds expectations, automotive sector demand continues to be strong

2021Q4 revenue exceeded expectations and downstream applications grew strongly. On January 28, STMicroelectronics released its results for the fourth quarter of 21. The report said the company's revenue performance was better than expected. 21Q4 achieved revenue of $3.56 billion, 9.9% year-on-year, an increase of 12.2% month-on-month, net profit of $750 million, gross profit margin of 45.2%, and net profit of 24.9%. The company achieved revenue of US $12.76 billion in fiscal 21, an increase of 24.9% over the same period last year. The terminal market was strong, and all three major markets achieved rapid double-digit growth. Demand in the automotive sector continued to be strong and SiC accelerated growth. 22Q1 revenue is expected to be $3.5 billion, down slightly quarter-on-quarter, and revenue for 22 years is expected to be $14.8 billion-$15.3 billion, an increase of 16% and 20% over the same period last year.

4.Wolfspeed:2022Q2 revenue growth rate is bright, predicting the persistence of silicon carbide production capacity shortage in the future.

Wolfspeed reported revenue in the second quarter of fiscal 2022, with an overall growth rate. On January 26th, Wolfspeed reported revenue for the second quarter of fiscal 2022. Wolfspeed reported revenue growth of 11 per cent month-on-month and 36 per cent year-on-year to $173.1 million in the quarter. Silicon carbide production capacity continues to be tight, customer demand increases rapidly. At present, Wolfspeed capacity is very scarce, due to "the sharp increase in customer demand for silicon carbide, some customer orders will not be completed in this fiscal year." In the third quarter of fiscal 2022, Wolfspeed aims to reach $1.85 to $195 million, mainly driven by power devices.

5. NXP: bright growth rate in fiscal year 2021, optimistic about continued high growth in the future

NXP released its fiscal year 2021 report with a remarkable overall revenue growth rate. On January 31, NXP reported results for the fourth quarter and full year ended December 31, 2021. In 2021, the company achieved a total operating income of US $11.06 billion, an increase of 28% over the same period last year. 21Q4 achieved a total revenue of US $3.04 billion, an increase of 21% over the same period last year, with a gross profit margin of 56.2% and a net profit rate of 26.6%.

Investment advice:

1) IGBT&SiC: Wentai Technology / East Micro Semiconductor / Silan Micro / time Electric / Starr Semiconductor / Macro and Micro Technology / Xin Jie Neng / Huarun Micro / Yangjie Technology / China Microelectronics / BYD Semiconductor;

2) Semiconductor design: Shengbang Co., Ltd. / Silipu / Lanci Technology / Jingchen Co., Ltd. / Ruixin Micro / Zhongying Electronics / Starr Semiconductor / Acer Technology / Xinjie Energy / Quanzhi Technology / Hengxuan Technology / Fuhanwei / Zhaoyi Innovation / Weir Co., Ltd. / Jing Fengmingyuan / Ziguangguo Weiwei / Shanghai Fudan;

3) IDM: Wentai Technology / San'an Optoelectronics / Times Electric / Shilan Wei;

4) wafer foundry: Huahong Semiconductor / SMIC;

5) Semiconductor equipment materials: North Huachuang / Jacques Technology / Shanghai Xinyang / China Micro / Precision testing Electronics / Huafeng Measurement and Control / Changchuan Science and Technology / Research New Materials;

Risk hints: changes in industrial policy, intensification of international trade disputes, and lower-than-expected development of downstream industries