Yin Te Electronics: Semiconductor materials shine brightly, and the localization process is natural

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The comprehensive recovery of the semiconductor industry is imminent, and leading enterprises have raised capital expenditures to start a new round of expansion cycle. Industry experts say that Yin Te Electronics has been deeply rooted in the industry for more than 10 years, and the company has the characteristics of a "pearl" in the industry for nearly 20 years, focusing on segmentation! With the localization process coming naturally!

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Information Extension: The semiconductor demand side, represented by smartphones, has fully recovered in the fields of consumer electronics, automotive electronics, servers, and security,

Leading semiconductor foundry TSMC's Q4 2019 performance exceeded expectations, while TSMC raised its capital expenditures for 2020, verifying a comprehensive recovery in semiconductor demand. TSMC's capital opening in 2019 was $15.15 billion, and it is expected to open $15-16 billion in 2020, with capital expenditures remaining at a high level.

UMC, SMIC, Riyueguang, and Ankou are expected to increase their capital expenditures by 66.7%, 55.0%, 30.0%, and 17.0% year-on-year in 2020, respectively. Global semiconductor sales increased by 6% in Q4 2019 compared to the previous quarter; North American semiconductor equipment shipments increased by 22.9% year-on-year in January; Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), the leading contract manufacturers, both achieved a new high in revenue for the same period in January.

The global semiconductor sales, foundry, packaging and testing, and equipment supply side are all in high spirits, especially represented by the foundry leader TSMC. High capital expenditures in 2020 are expected to drive the expansion of semiconductor industry capacity. The new round of semiconductor production expansion cycle is expected to drive the expansion of demand for semiconductor supporting materials.

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The semiconductor materials market continues to benefit from the expansion of production capacity, and the acceleration of localization is beneficial to the local semiconductor materials industry chain: semiconductor wafer manufacturing materials include silicon wafers, photomasks, photoresists and supporting materials, wet chemicals, electronic gases, sputtering target materials, CMP materials, polishing pads, quartz materials, etc. According to SEMI data, the semiconductor materials market grew to $51.9 billion in 2018, an increase of 10.6% compared to $47 billion in 2017, mainly due to the full operation of completed semiconductor factories and the increase in material consumption caused by the increase in the number of semiconductor processes. China's semiconductor materials account for about 16% of the global market, mainly in the form of packaging materials, with wafer manufacturing materials accounting for a lower proportion than packaging materials.

The proportion of domestic production of semiconductor materials in China is relatively low. In 2017, the sales volume of domestic semiconductors was about 28.17 billion yuan, of which the sales volume of domestic packaging materials was about 11.64 billion yuan, with a localization rate of 29.3%. The overall localization rate of semiconductor materials in China is still at a relatively low level, and there is still a large market space in the field of import substitution. In addition, with the promotion of advanced local processes and the expansion of storage bases in China, the demand for semiconductor materials will increase year by year, bringing great opportunities for local material manufacturers to import.