Behind the semiconductor boom: The industry will embrace a new round of development opportunities

After a long silence, the semiconductor industry index recently ushered in a wave of strong rises, after seven consecutive Yang after a few days of shocks, April 14, semiconductor equipment leader North China Chuang a quarter forecast far exceeded expectations, its stock price strong limit, so that the market in the industry's prospects of confidence, semiconductor industry index soared 4.13%, once again become the focus of hot discussion.

    See the essence through the appearance. As a basic supporting industry of the national economy, the semiconductor industry has received much attention. In recent years, the European Union, the United States, Japan, South Korea and other major countries and regions have proposed legislation to revitalize the local semiconductor industry, trying to obtain the right to speak of the market and technology. China also actively introduced various measures to support the industry is very firm, and the prosperity of the semiconductor industry continues to rise.

　　Therefore, the author believes that the recent strong rise in the semiconductor industry index reflects that the industry is expected to usher in a new round of development opportunities under the help of multiple factors, and become a popular track with long slopes and thick snow. Its long-term investment logic includes the continuous increase of policies, the long-term trend of the industry's own development, and the persistence of long-term funds.

　　First, sustained policy support. In recent years, China has continued to vigorously support the development of the semiconductor industry through various policies. Standing at the national strategic height of the development of the industry to put forward the top-level planning, top-down multi-angle, all-round support, accelerate the development of the industry, from the fiscal and tax policies, research and development project support, industrial investment, talent subsidies and other aspects.

　　On April 6, 2023, the founding meeting of the National Integrated Circuit Standardization Technical Committee and a session of all members meeting was held in Beijing. The meeting proposed that integrated circuits, as the cornerstone of the modern information society, are of strategic significance to accelerate industrial transformation and upgrading and enhance core competitiveness. Standardization of integrated circuits is an important measure to implement the national standardization development strategy and plays an important role in promoting the high-quality development of the integrated circuit industry.

　　Secondly, the scale of the industry is gradually rising, and the prosperity is constantly improving. According to the China Semiconductor Industry Association data show that in 2021, China's integrated circuit industry sales of 1,045.83 billion yuan, an increase of 18.20%. The compound growth rate from 2018 to 2021 is 17%, more than three times the global growth rate during the same period. In the first half of 2022, the sales of China's integrated circuit industry reached 476.35 billion yuan, an increase of 16.1% year-on-year, and the growth rate was higher than the global level. It is expected that in 2023, the market size will reach 1442.5 billion yuan.

　　At present, with the intensification of competition in the global integrated circuit semiconductor industry, the independent and controllable domestic substitution of the industry has accelerated, and the creation of an independent and controllable whole industry chain has once again become the catalyst for the semiconductor industry. In this regard, market participants have said that the independent control of the semiconductor industry chain is the long-term main line, and the domestic replacement of equipment and parts will usher in an acceleration period.

　　Third, the layout of long-term funds. Public information shows that the National Integrated Circuit Industry Investment Fund Co., LTD. (referred to as the "Big Fund") was established in 2014, and the first phase mainly invests in key industries such as chip manufacturing. The second phase of the large fund was established at the end of 2019, raising a total of about 200 billion yuan, and the investment direction is focused on improving the key industrial chain of the semiconductor industry, which will promote the development process of the core field of semiconductors in all aspects on the basis of the first phase, and targeted investment in the weak links of localization to help the industry build a better semiconductor industry chain. Since 2023, the second phase of the large fund is gradually increasing the proportion of investment in the field of semiconductor equipment and materials. Long-term investment undoubtedly comes from confidence in the long-term development of the industry.

　　The road to innovation and development will not be smooth. As the "energy" of the science and technology industry, semiconductor is already a battleground for the "core era". In the face of challenges, the outstanding performance of listed companies in the semiconductor industry chain such as NAURA because of technological progress has boosted confidence in the development of the industry. The author believes that China's semiconductor industry will usher in a new round of development opportunities in the gradual recovery of prosperity and achieve high-quality development.

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