[hot] "National Core Refining" spawned a huge market. China's semiconductor shipments ranked first in the world.

SMM9 March 24: recently, (SEMI), the International Semiconductor Industry Association, put forward a prospect for 2020. Sales of semiconductor manufacturing equipment are expected to increase further compared with the forecast as of June (US $63.5 billion), which is expected to reach US $64.7 billion. The association believes that the industry as a whole will remain strong after 2021. Sales in 2021 are expected to increase by 8.2% over 2020, reaching $70 billion for the first time.

Semiconductors, as a hot word this year, frequently appear in the major financial headlines. Since 2020, due to the extreme pressure on chips by the United States, domestic semiconductors have become a huge tuyere. According to official data, China's chip self-sufficiency rate is only about 30% in 2019, while it is expected to reach 70% in 2025. Under the attraction of policy and market, "core-making by the whole people" has become the preferred strategy of many enterprises. in the first eight months of 2020, nearly 10,000 (9335) enterprises have changed their business scope and joined the related businesses of semiconductors and integrated circuits. in addition, various national teams have also begun to enter them, giving birth to a huge market in the field of domestic chips.

On the 23rd of this month, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance, and other four departments jointly issued the "guidance on expanding Investment in Strategic emerging Industries and cultivating New growth poles."

Among them, it is proposed to speed up the strengths and weaknesses of the new material industry, and speed up breakthroughs in the fields of photoresist, high-purity targets, superalloys, high-performance fiber materials, high-strength, high-conductivity and heat-resistant materials, corrosion-resistant materials, large-size silicon wafers, electronic packaging materials and so on. Among them, photoresist, large-size silicon wafers and electronic packaging materials are closely related to semiconductors, involving semiconductor materials in the upstream support industry and the manufacture of core integrated circuits in the mid-stream manufacturing industry.

In terms of investment, according to the Guoxin Securities Research report, the market expects the cumulative investment of semiconductors in mainland China to reach 9.5 trillion yuan during the 14th five-year Plan period. As of the first half of 2020, the total assets of listed semiconductor companies in mainland China are 480 billion yuan, and the net assets are only 289.2 billion yuan. As the mainstream semiconductor companies in mainland China have been listed, semiconductor listed companies can represent the assets of all semiconductor companies in mainland China. If the future investment of 9.5 trillion yuan, equivalent to the existing semiconductor assets will be expanded 20 times.

Judging from the performance of enterprises in the second quarter, the semiconductor sector achieved operating income of 84.526 billion yuan in the first half of 2020, an increase of 18.34 percent over the same period last year, and realized a net profit of 8.076 billion yuan belonging to shareholders of listed companies, an increase of 107.16 percent over the same period last year. Among them, the operating income of the semiconductor sector in the second quarter was 46.008 billion yuan, an increase of 18.01 percent over the same period last year, realizing a net profit of 5.337 billion yuan belonging to shareholders of listed companies An increase of 122.51% over the same period last year. Dongguan Securities believes that global semiconductors have entered the upward cycle since 19Q3, while the domestic semiconductor industry has benefited from the acceleration of domestic substitution, and the performance growth rate is much higher than the global level in the same period, with high performance growth recorded by major listed companies.

Under the guidance of policy and the blessing of capital, domestic semiconductor equipment is developing rapidly. According to SEMI data, global semiconductor manufacturing equipment shipments reached US $16.8 billion in the second quarter of this year, an increase of 26% over the same period last year. Among them, China's semiconductor equipment shipments reached US $4.59 billion (about 31.4 billion yuan), up 36% from the same period last year, ranking first in the world.