Semiconductor Materials Research Framework Series: Detailed explanation of eight chip materials

In the entire electronic information industry, the semiconductor materials industry often becomes a chip in the game between countries because of its great added value and unique industrial ecological support. We have summarized the following characteristics of the semiconductor materials industry:

(1) There are many sub-categories, each major category of materials usually includes a number of specific products, the single market is small, and the platform layout is crucial;

(2) The technical span between sub-industries is large, and the leaders in various segments of semiconductor materials are different;

(3) High downstream certification barriers and large customer stickiness;

(4) Highly positive correlation with downstream wafer fabrication, and development depends on fab capacity;

(5) Different from semiconductor equipment, semiconductor materials, as consumables, have demand every year, and the overall market size is steadily rising;

(6) Policy-driven industries often rely on special policies to promote the transformation of technological achievements.

3 major catalysts in China's semiconductor materials industry:

Short-term: The semiconductor boom cycle adheres to the law of "equipment first, manufacturing relay, and material shortage", and has entered the "material shortage" stage characterized by the "silicon wafer crisis". The rise in volume and price is the main theme of the material next year.

Medium-term: The success of the verification determines the breakthrough of domestic material companies "from 0 to 1". With a higher domestic production rate and a more mature OSAT system in China, encapsulation materials have advantages over manufacturing materials in the verification stage and are more prominent than manufacturing materials in the medium-term dimension.

Long-term: In the next three years, the production capacity of Chinese-funded fabs will increase significantly. With higher localization potential and rapid expansion of Chinese fab capacity, manufacturing materials are more attractive than packaging materials in terms of long-term dimension.

Investment strategy: At present, a large number of domestic semiconductor materials are in the critical stage of verification of "from 0 to 1", and we recommend paying attention to the stock selection strategy:

(1) Whether the technical level of each company has the strength to narrow the gap with international giants in product performance (domestic substitution basis);

(2) Leading enterprises in various segments of semiconductor materials (domestic market position) ;(3) the company's ability to obtain resources and platform integration (the company's growth space) ;(4) the company's revenue and performance growth (localization process).

Semiconductor material investment opportunities come from the domestic substitution of fabs and OSAT industry chains, and it is recommended to pay attention to the relevant industrial chain targets:

Manufacturing materials: Shanghai Silicon Industry, Leon Micro, Zhonghuan Shares, Shengong Shares, Zhongjing Technology, Jingrui Electric Materials, Nanda Optoelectronics, Tongcheng New Materials, Yake Technology, Chinachem Technology, Jinhong Gas, Huate Gas, Hangzhou Oxygen Shares, Zhengfan Technology, Anji Technology, Dinglong Shares, Shanghai Xinyang, Jianghua Micro, Juhua Shares, Guanghua Technology, Jiangfeng Electronics, Longhua Technology, Youyan New Materials, Feikai Materials, Rongta Photosensitive, Kemet Gas, Xinzhubang, Xingfa Group, Polyfluoride, etc

Packaging materials: Xingsen Technology, Shennan Circuit, Kangqiang Electronics, Shenghong Technology, Chongda Technology, Sanhuan Group, National Porcelain Materials, etc

Risk Warning: The decline in the prosperity of the semiconductor industry, the risk of customer certification and breakthrough of semiconductor materials, the risk that the construction progress of fab capacity is less than expected, and the development of advanced packaging is less than expected.

This article originated from the financial world