SMIC Juyuan: Promoting Industrial Innovation and Development Next year, we will strive to build a leading enterprise in the subdivision field

On December 18, the "2022 3rd China Semiconductor Investment Alliance Annual Conference & China IC List Award Ceremony" jointly organized by China Semiconductor Investment Alliance and Aijiwei was successfully held in Beijing, SMIC Juyuan Equity Investment Management (Shanghai) Co., Ltd. (hereinafter referred to as "SMIC Juyuan") won the "Annual Best Investment Institution Award", and the SMIC Juyuan team won the "Outstanding Investor of the Year Award".

As a professional investment institution in the field of integrated circuits initiated by SMIC, a leading enterprise in China's integrated circuit field, SMIC has been working hard for more than 7 years and has set its own benchmark in the industry. Since its inception, the company has been "becoming the most professional integrated circuit industry investment institutions in China" as the vision, to "promote the innovation and development of China's integrated circuit industry" as the mission, relying on the industrial capital background and professional management team, deeply cultivate the investment in the field of integrated circuits, the investment field covers IC design, semiconductor equipment and materials, key components, EDA/IP and downstream application links, the investment stage covers angel investment, VC, PE, listed companies strategic placement and non-public offering, mergers and acquisitions investment, etc.

Zhao Sen, founding partner of SMIC Juyuan, said that the key areas of the company's investment in 2021 include equipment, materials and core components, "because in the process of promoting the entire industrial chain, this part is relatively lacking, so we spend a lot of energy to dock and communicate with related industries in China." ”

He further pointed out that domestic semiconductor manufacturers, including SMIC, have provided a lot of convenience for the localization of integrated circuit equipment, and SMIC Juyuan has also made a layout in the field of equipment.

Chip design has always been the focus of SMIC's attention, and this year it pays special attention to automotive chips, including MCUs, autonomous driving chips, as well as analog chips and DPUs, etc. "We will continue to invest in distinctive chip design companies, in line with the strategy of previous years." ”

Benefiting from various favorable factors, the semiconductor companies invested by SMIC Juyuan have achieved rapid growth, and many companies have achieved 2-3 times performance growth.

For the growth of the subdivision track, Zhao Sen made an analysis one by one. He pointed out that analog chips are the fastest growing in chip design, and as long as they encounter the right large customers, they will bring huge shipments to design companies, thus achieving accelerated growth. Of course, affected by the unprecedented shortage of goods in recent times, MCU chip manufacturers have also grown rapidly.

In the field of semiconductor equipment, Zhao Sen believes that the growth of back-end equipment manufacturers is very fast, especially the packaging and testing related equipment, which is also closely related to the rapid development of domestic packaging and testing industry technology.

In the field of semiconductor materials, bulk gases and wet chemicals are making rapid progress, "because the amount of use in this area is very large, and the variety of products that domestic suppliers can provide is also increasing." Zhao Sen said.

The high growth of the whole industry has also brought high returns, and SMIC Juyuan investment companies have been listed nearly 30 times, and 13 have passed or listed in 2021 alone.

Zhao Sen said that SMIC Juyuan will make every effort to improve the quality and scale of the invested companies next year, "We hope to gradually build some leading enterprises through our own industrial background, introduce relevant resources for them, work with them to do industrial integration, and promote the development of their products to the middle and high-end." ”

In order to help enterprises accelerate growth, SMIC Juyuan has done a lot of work. Zhao Sen said: "We are strengthening the coordination and interaction of the industrial chain itself to achieve business matching between large and small customers. ”

On the issue of production capacity, Zhao Sen believes that it is currently in a process of dynamic adjustment, and the following year should be alleviated, "The shortage of these two years has made fabs and packaging plants increase capital expenditure, because it takes about two years to build new plants, plus the delivery period of equipment is also growing, and the production capacity should be completely released until the next year." ”

Finally, for the current valuation of the semiconductor industry, Zhao Sen also talked about his own views, "Now it is said that the valuation is high, which is the result of compared with the beginning of 14 years, but now the scale of the enterprise has gone up, the product level has also been greatly improved, and the exit path of the capital market is also relatively clear, and these changes have affected the current company valuation." At the same time, he also stressed: "Valuation should be related to the growth of enterprises, static look will certainly have some high, but if the company's development in the next two or three years is explosive, the valuation at this stage may be relatively low, so the valuation of enterprises should be dynamically viewed." ”

(Proofreading/Andrew)