According to the latest data, it has been more than 16 months since the opening of the board, 189 listed enterprises have been born, including 27 chip enterprises, and the “core content” of the board has reached nearly 15%.
The 27 IC companies listed on the board have raised nearly 90 billion yuan, accounting for about 34% of the total amount raised by the board.
This data is expected to continue to punch high, after all, 27 chip stocks, rough estimates there are not less than 40 proposed CRE Board listed chip companies are lining up.
It can be said that the board has already become the “first choice” of many domestic chip players IPO, a cluster of carrying the spark of hope for China’s chip industry is being lit.
In fact, this is also one of the original intention of the board, from the opening of the board, the board set the tone to “focus on supporting a new generation of information technology, high-end equipment …… and other high-tech industries and strategic emerging industries”, which coincides with the chip industry; In addition, the first batch of 25 companies listed on the board, there are six chip companies.
Landing on the board of the chip industry chain players such as SMIC, Cambrian, Lanqi Science and Technology, have hit 100 billion market capitalization. Despite the ups and downs of the market changes, but the establishment of the board has undoubtedly brought vitality to the chip industry, the trading market.
A closer look at the distribution of nearly 30 chip companies in various locations in the industry chain, is building the internal cycle of China’s semiconductor industry chain, to become the Chinese chip localization alternative to the “Great Wall” of bricks and tiles.
At a time when the listing on the board has become a “trend” in the chip market, it is worth exploring what the status of the “underwater” chip companies is.
Through combing the research and development level, advanced technology, revenue scale and other elements of the 27 chip stocks on the board, something wise is committed to uncovering the real development behind the phenomenon of chip stocks “dominating” the board.
First, chip stocks: the board of 189 shares occupy 27 seats
Since the opening of the Science and Technology Innovation Board (STIB) of the SSE, 189 listed enterprises have been born, of which 27 are chip enterprises, accounting for about 15% of the total number of enterprises listed on STIB.
In terms of quantity alone, chip companies have become a large part of the companies listed on the board. In addition, the semiconductor companies listed on the board have also performed well in terms of market capitalization.
At the 3rd Global IC Entrepreneurs Conference and the 18th China International Semiconductor Expo held on October 14 this year, Mr. Shen Weiguo, Party Secretary and General Manager of Shanghai Science & Technology Venture Capital Co., Ltd. and Chairman of Shanghai Integrated Circuit Industry Investment Fund, shared that the total market capitalization of 27 IC enterprises listed on the board reached 1.1 trillion yuan, accounting for about 35% of the total market capitalization of the board; raising nearly 90 billion yuan, accounting for about 34% of the total amount raised by the CRE Board.
Wise things observed that due to the recent weakening of the semiconductor sector share prices, the total market capitalization of integrated circuit enterprises listed on the CRE Board has been reduced from 1.1 trillion yuan.
According to the information published on the SSE website, the total market capitalization of the top ten companies listed on the board, six of them are chip companies, namely SMIC, Lanqi Technology, SMIC Semiconductor, Shanghai Silicon Industry, Cambrian, China Resources Micro. Among them, today SMIC’s latest market capitalization of about 115 billion yuan.
In terms of operations, there are currently five of the 27 CRE Board listed chip companies that have yet to achieve profit, namely, Shanghai Silicon Industry, Cambrian, Henan Shijia Photonics, VeriSilicon, and SMIC.
Among them, the Cambrian profit gap is the largest, about greater than 1.6 billion yuan.
- Core enterprises listed on the board are all over the upstream and downstream of the industry chain.
Combing 27 board-listed chip companies, it will be found that China has cultivated players in all aspects of the chip industry chain, many of which are mainland industry leaders.
1, upstream equipment, materials, IP links
Upstream support links are mainly related to semiconductor equipment, semiconductor materials, chip IP and so on, a total of 10 related board listed companies.
At present, the board listed on the semiconductor equipment players are micro semiconductor, Shenyang core source microelectronics, Huafeng measurement and control.
Among them, SMIC is engaged in the etching equipment, MOCVD equipment and other semiconductor equipment R & D, production and sales; Shenyang core source microelectronics engaged in the lithography process coating and developing equipment, monolithic wet process equipment and other equipment R & D, production and sales; Huafeng measurement and control engaged in the semiconductor automation test equipment R & D, production and sales.
According to Bank of China Securities, China International Bidding Network, 2019 mainland China’s etching equipment market size of about $3.2 billion, 77% of the market share is occupied by foreign players, occupying a 17% market share of SMIC Semiconductor has become the backbone of China’s local wafer fab etching equipment.
In terms of products, the 5nm etching equipment of SMIC has already started to layout first-tier chip foundries.
According to the China Semiconductor Industry Association, in 2018, Shenyang core source microelectronics ranked the fifth strongest domestic semiconductor equipment manufacturers.
For a long time, the market of coating development equipment products is dominated by TEL and other foreign manufacturers, core source micro production of coating development equipment products to break the monopoly of foreign manufacturers and fill the domestic gap, has been supplied to Huatian Technology, Tongfoo Microelectronics, SMIC, Changjiang Storage and other industry chain players.
In the field of semiconductor test systems in mainland China, Huafeng Measurement and Control is the largest supplier of semiconductor equipment, and has formed supply relationships with manufacturers such as Changdian Technology, Tongfu Microelectronics, and China Resources Microelectronics.
The semiconductor materials players listed on the board are Anji Microelectronics, Shanghai Silicon Industry, QingYi Photoelectric, ShenGong Semiconductor, Huatai Gas, six positive sail technology.
Each of the six semiconductor material companies has its own strengths from business to market position. For example, Shanghai Silicon Industry is China’s largest semiconductor wafer manufacturer and the first in mainland China to achieve large-scale sales of 300mm semiconductor wafers; in 2018, the single-crystal silicon material produced by Shen Gong Semiconductor for etching, occupying 13-15% of the global market share.
Overview of semiconductor materials companies listed on the CRE Board
VeriSilicon can be said to be “the first Chinese chip IP stock” on the board, and is currently the only share of chip IP on the board.
According to research firm IPnest statistics, according to the 2018-2019 global semiconductor IP vendor sales revenue market share ranking, VeriSilicon ranked seventh in the world and first in China with a market share of 1.8%.
The top six are ARM, Synaptics, Articulate Electronics, SST, Imagination and CEVA.
2、Midstream and downstream design, manufacturing, packaging and testing links
The midstream and downstream design and manufacturing processes involve the research and development and design of chips, foundry packaging and testing, etc. There are a total of 17 related CRE Board-listed enterprises.
Due to the late start of China’s chip industry, the pattern of foreign manufacturers dominating the chip market has already formed. Faced with the situation of “surrounded by powerful enemies”, many chip design, manufacturing, packaging and testing enterprises choose to cut into the market from the segmentation of the field, in the foreign leading enterprises have not yet woven a “dense network” to find a living space.
For example, one of the first batch of listed companies on the CRE Board, Rui Chuang Microana, choose MEMS sensors, infrared chips and other products as the main business, product applications covering outdoor / law enforcement / security fire and other fields, has now established business relations with the security leader Hikvision; Amlogic Semiconductor focuses on multimedia intelligent terminal SoC products, in 2018, ranked first in China’s smart set-top box chip market.
14 domestic midstream and downstream chip players business field profile
In the much-anticipated foundry sector, SMIC, the largest foundry in mainland China and the fourth largest in the world, has also landed on the CRE Board, and is the only pure-play foundry on the board so far.
At present, SMIC is the highest market capitalization of the board’s chip companies, its market capitalization was once more than 200 billion yuan.
It is a fact that China’s chip industry started late, and now AI chips have become a new windfall for the global chip industry. China’s chip industry chain wants to “catch up” with the world’s leading level, in addition to the need for wafer foundry packaging test “remedial”, but also in the high-precision AI chips to make efforts.
In the board listed chip players, there is no lack of business related to AI chip enterprises. For example, for cloud servers, edge computing devices and other products to provide AI chip solutions Cambrian; for AI, cloud computing to provide chip-based solutions for Lanqi technology.
In addition, in the emerging field of quantum communications, there is also a board-listed companies – Guodun Quantum.
Third, the localization of alternative has a long way to go
One year after the opening of the board, the chip players listed on the board has formed a more complete layout of the industrial chain.
The board provides the stage and soil for the domestic semiconductor industry chain players. Although there are players listed on the board in each industry chain, there is still a long way to realize the real localization substitution.
First of all, the chip industry itself is characterized by the need for heavy assets and long-term investment, and Chinese local enterprises still need to go through a long cultivation period. Many CREB-listed companies have yet to achieve profitability, and it is difficult for R&D investment and operating income to be equal.
Take Cambrian, for example, in 2019, Cambrian’s R&D investment was 543 million yuan, and R&D investment accounted for 122.32% of revenue.
Secondly, the chip industry chain has formed a global layout, and the completely closed-door approach is contrary to the global industry, technology and market trends.
In addition, compared to the advanced international players, there are still weaknesses in the advanced level of technology, revenue scale, R & D investment and other aspects of the chip companies listed on the board.
Wise stuff selects several major representative CRE Board-listed players and compares them with foreign leading enterprises.
1, In the global etching equipment market, U.S. semiconductor equipment player Lam Research accounted for more than half of the market share.In 2019, Lam Research invested US$1.19 billion (RMB7.981 billion) in R&D, accounting for 12.33% of the annual revenue.
China’s CREB-listed etching equipment player CMC Semiconductor invested RMB 425 million in R&D in 2019, accounting for 21.81% of revenue.
2, in the global semiconductor large silicon wafer market, Japan’s Shin-Etsu Chemical market share ranked first.In fiscal 2018, Shin-Etsu Chemical’s R&D investment was 56.4 billion yen (3.73 billion yuan), accounting for 3.5% of the revenue volume in fiscal 2018.
In the same year, the R&D investment of HuSi Industry, a large wafer manufacturer listed on the CRE Board, was $84 million, accounting for 5.64% of revenue.
3, the global foundry market, TSMC as a leading player, in the revenue, production capacity, R & D scale in the industry leader.
At present, TSMC 5nm process has begun to ship, also began the layout of more advanced 3nm process. In contrast, the most advanced player on the mainland, SMIC, currently holds the lowest process at 14nm.
On the R&D side, in 2019, TSMC’s R&D investment will be $2.959 billion (RMB 19.845 billion), accounting for 8.55% of revenue; SMIC’s R&D investment will be $4.7 billion, accounting for 21.55% of revenue.
Conclusion: The fire of “core” star will eventually start a prairie fire.
Since the beginning of this year, the U.S. trade war has brought shade to thousands of trades, while the chip industry is in the center of the storm, for a time at home and abroad encountered the “two days of ice and fire” treatment. Although the domestic chip industry chain to sea and imports are blocked. But on the other hand, a number of chip companies landed on the board of the news of the secondary market concerns, but also the side reflects the public awareness of the importance of the chip industry chain “independent and controllable” to enhance.
The establishment of the Chinese securities market less than 30 years, the board set up only less than two years, in less than 17 months time, from the business direction, the board listed chip companies have covered all aspects of the industrial chain, quite a “crowd to pick up the wood” momentum.
As the 27 “seeds” of China’s chip industry, from a global perspective, the domestic chip players listed on the board in terms of revenue scale, advanced technology, production capacity and other aspects of the short board. But their greater significance is to build the internal cycle of China’s chip industry. I believe that in time, the 27 “kindling” will burn into a prairie fire momentum.
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