Understand the semiconductor industry chain in one article

Latest update time：2023-06-12 15:33

Reads：

Source: Content comes from UISEE Capital, thank you.

Semiconductor market size

Semiconductors have a wide range of downstream applications and are closely related to economic development. Semiconductor refers to a material whose electrical conductivity is between that of a conductor and an insulator at room temperature. Its resistivity increases with the increase of temperature and can be used to make integrated circuits and semiconductor devices. Semiconductors have a wide range of downstream applications, covering various industries such as smartphones, PCs, automotive electronics, medical care, communication technology, artificial intelligence, Internet of Things, industrial electronics, and military.

From the perspective of downstream demand structure, computers (mainly PCs and servers) and communication products (mainly smartphones) constitute the main source of global semiconductor demand, accounting for nearly three-quarters of the total. According to IC Insights data, sales in the computer field accounted for 39.7% of the semiconductor downstream in 2020, and sales in the communications field accounted for 35.0%, followed by consumer electronics and automotive electronics, accounting for 10.3% and 7.5% respectively.

Figure 1: Downstream sales structure of the semiconductor industry

Data source: IC Insights, Dongguan Securities Research Institute

In the electronic information era, semiconductor sales are increasingly closely related to global economic growth and play an important role in economic development. In the electronic information age, semiconductors play an increasingly important role in economic development, and semiconductor sales are closely related to global economic development. According to data provided by WSTS and the IMF, from 1987 to 1999, the correlation coefficient between global semiconductor sales growth rate and GDP growth rate was 0.13, while from 2000 to 2022, the correlation coefficient between the two increased to 0.46, and the correlation increased significantly. As the silicon content of downstream PCs, servers, smartphones, and new energy vehicles continues to increase, it is expected that the correlation between semiconductor sales and economic development levels is expected to continue to increase in the future.

Chart 2: Global semiconductor sales year-on-year growth rate and global GDP real growth rate from 2000 to 2022

Data source: WSTS, International Monetary Fund, Dongguan Securities Research Institute

Review of industry sales scale: Downstream innovation drives industry development, and industry scale grows amid fluctuations. We reviewed semiconductor sales over the years and found that the industry market size is mainly determined by downstream innovation. Downstream terminal sales and corporate production capacity release jointly determine cyclical fluctuations. The overall situation shows the characteristics of growth amidst fluctuations. From 2015 to 2022, global semiconductor sales increased from US$335.2 billion to US$573.5 billion, with a compound annual growth rate of 7.97%, higher than the global GDP growth rate during the same period.

2015-2018: Smartphones are still in a period of rapid penetration. Driven by strong demand for downstream smartphones, TWS and other consumer electronics, the global semiconductor market is booming, with the market size growing from US$335.2 billion to US$468.8 billion in 2015-2018. The compound growth rate is 11.83%;

2019: The smart terminal market, represented by smartphones, declined, the global semiconductor cycle declined, and international trade frictions intensified. The global semiconductor industry market size was US$412.3 billion, down 12.05% year-on-year;

2020-2022: As the scale of 5G terminals continues to expand, the demand for data centers increases, as well as the gradual expansion of intelligent scenarios such as AIoT and the continuous penetration of automotive electronics, coupled with the increasing demand for remote office and home entertainment under the background of the epidemic, the scale of the global semiconductor industry On the upside, the global semiconductor market size in 2020, 2021 and 2022 will be US$440.4 billion, US$555.9 billion and US$573.5 billion respectively, with year-on-year increases of 6.82%, 26.83% and 3.17% respectively.

Chart 3: Global semiconductor market size from 2015 to 2022

Data source: WSTS, Dongguan Securities Research Institute

Semiconductor industry classification. According to the World Semiconductor Trade Statistics (WSTS), semiconductor products are subdivided into four major categories: integrated circuits, discrete devices, optoelectronic devices and sensors. Among them, integrated circuits account for more than 80% of the industry. Its subdivisions include logic chips, memories, microprocessors and analog chips, etc., and are widely used in 5G communications, computers, consumer electronics, network communications, automotive electronics, the Internet of Things, etc. Industry is the core component of most electronic equipment.

According to WSTS data, the global integrated circuit, discrete device, optical optoelectronics and sensor market sizes in 2022 will be US$479.988 billion and US$34.098 billion respectively. 43.777 billion US dollars and 22.262 billion US dollars, accounting for 82.7%, 5.9%, 7.5% and 3.8% of the global semiconductor industry respectively. Among the above-mentioned semiconductor product distribution, integrated circuits are the most technically difficult and fastest-growing segmented products, and are the most important component of the semiconductor industry.

Chart 4: Semiconductor classification

Data source: WSTS, Dongguan Securities Research Institute

Chart 5: Sales proportion of semiconductor subcategories (2022)

Data source: WSTS, Dongguan Securities Research Institute

Chart 6: Changes in market size of various semiconductor subcategories from 2011 to 2022

Data source: WSTS, Dongguan Securities Research Institute

Integrated circuit: An integrated circuit (IC) is a miniature electronic device or component that uses a certain process to interconnect the transistors, resistors, capacitors, inductors and other components and wiring required in a circuit to create a A small piece or several small pieces are placed on a semiconductor wafer or dielectric substrate, and then packaged in a tube shell to become a microstructure with the required circuit functions, also called a chip.

According to the type of signal processing, integrated circuits can be divided into digital chips and analog chips. According to the different types of signal processing, integrated circuits can be divided into two categories: digital integrated circuits and analog integrated circuits. Digital integrated circuits are used to perform arithmetic and logical operations on discrete digital signals, including logic chips, memory chips and microprocessors. , is a digital logic circuit or system made by integrating components and connections on the same semiconductor chip; analog integrated circuits mainly refer to analog circuits composed of capacitors, resistors, transistors, etc. that are integrated together to process analog Signal integrated circuit. According to WSTS data, logic chips, memory chips, microprocessors and analog chips accounted for 32.78%, 32.52%, 19.29% and 15.41% of the integrated circuit market size respectively in 2020.

Chart 7: Global integrated circuit product composition in 2020

Data source: WSTS, Dongguan Securities Research Institute

Figure 8: Comparison between analog integrated circuits and digital integrated circuits

Data source: Xidi Micro Prospectus, Dongguan Securities Research Institute

Discrete devices: refers to semiconductor devices that have fixed single characteristics and functions and cannot be subdivided in function, such as diodes, transistors, thyristors, power semiconductor devices (such as LDMOS, IGBT), etc. It does not integrate any other electronic components inside, and only has simple voltage and current conversion or control functions, but does not have the system function of the circuit. Compared with integrated circuits, discrete devices are larger in size, but in ultra-high power, semiconductor lighting and other occasions, discrete devices have advantages over integrated circuits.

Figure 9: Discrete Devices - Diodes

Data source: Internet, Dongguan Securities Research Institute

Chart 10: Discrete device-transistor

Data source: Internet, Dongguan Securities Research Institute

Figure 11: Discrete device-IGBT

Data source: Internet, Dongguan Securities Research Institute

Figure 12: Some types of discrete devices

Data source: Internet, Dongguan Securities Research Institute

Optical optoelectronic devices (photoelectron devices) : are various functional devices made by utilizing the electric-photon conversion effect. Optoelectronic devices have a wide range of applications, including optical communications, optical displays, mobile phone cameras, night vision glasses, low-light cameras, photoelectric sights, infrared detection, infrared detection, infrared guidance, medical detection and perspective and other fields.

Figure 13: Types of optical optoelectronic devices

Data source: WSTS, Dongguan Securities Research Institute

Sensor : According to the definition of the national standard GB/T7665-2005, a sensor refers to a device or device that can sense what is being measured and convert it into a usable output signal according to certain rules. It can detect events or changes that occur in the environment. , and transmit this message to other electronic devices (such as central processing units), usually composed of sensitive components and conversion components, generally including sensing units, computing units and interface units. There are many types of sensors, which can be divided into temperature sensors, pressure sensors, flow sensors, gas sensors, optical sensors and inertial sensors according to different measurement purposes.

Figure 14: Sensor classification

Data source: Serui Research, Dongguan Securities Research Institute

Semiconductor industry structure

Semiconductor industry chain situation. From the perspective of production process, semiconductor production is mainly divided into design, manufacturing and

There are three major processes of packaging and testing, and they require support from upstream semiconductor equipment and materials. Different products represented by integrated circuits are widely used downstream, and the growth in demand led by downstream innovation is the core driving force for the rapid development of the semiconductor industry.

Figure 15: Semiconductor industry chain

Data source: Shengmei Shanghai Prospectus, Dongguan Securities Research Institute

Integrated circuit design: refers to designing the required circuit diagram according to the established functional requirements, and the final output result is the mask layout. my country's integrated circuit design industry has a low starting point for development, but relying on favorable factors such as huge market demand and a good industrial policy environment, it has become a new force in the global integrated circuit design industry. From the perspective of industrial scale, the sales scale of the integrated circuit design industry in mainland my country has increased from 38.30 billion yuan in 2010 to 451.90 billion yuan in 2021, with a compound annual growth rate of approximately 25.15%; and the gradual improvement of the local industrial chain has also provided domestic Start-up chip design companies have provided wafer manufacturing support, coupled with industrial funding and policy support, as well as the return of overseas talents, the number of chip design companies in my country has increased rapidly. According to data from the China Semiconductor Industry Association, the number of chip design companies in my country has increased significantly since 2010. It was only 582 in 2010 and will grow to 3,243 in 2022. The average annual compound growth rate from 2010 to 2022 is approximately 15.39%.

Chart 16: Growth in the number of chip design companies in China from 2010 to 2022

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Chart 17: my country’s integrated circuit design industry sales and year-on-year growth rate

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Integrated circuit manufacturing: Integrated circuit manufacturing refers to the process of transferring the designed circuit diagram to a substrate material such as silicon wafer, that is, the transistors, diodes, resistors, capacitors and other components required for the circuit are made on a small piece of silicon using a certain process. On the chip, glass or ceramic substrate, and then interconnected using appropriate processes, and then packaged in a tube shell, the size of the entire circuit is greatly reduced, and the number of leads and soldering points is also greatly reduced.

From the perspective of process flow, the integrated circuit manufacturing process is generally divided into front end of line (FEOL) and back end of line (BEOL). The front-end process generally refers to the manufacturing process of devices such as transistors, which mainly includes the formation processes of isolation, gate structure, source and drain, and contact holes. The back-end process mainly refers to the formation of interconnect lines that can transmit electrical signals to various devices on the chip. It mainly includes the dielectric deposition between interconnect lines, metal line formation, and the lead-out pad (Contact) preparation process as the dividing line.

In recent years, thanks to the rise of local wafer foundries such as SMIC and Hua Hong Semiconductor, as well as the establishment of leading wafer foundry companies such as TSMC in mainland China, the market size of my country's integrated circuit manufacturing industry has grown rapidly. According to data from the China Semiconductor Industry Association, from 2010 to 2021, the scale of mainland China's integrated circuit manufacturing industry increased from 40.90 billion yuan to 317.63 billion yuan, with a compound growth rate of 20.48% from 2010 to 2021; among which, SMIC's annual revenue It increased from 8.4 billion yuan to 50.757 billion yuan, with a compound growth rate of 17.77% from 2011 to 2022.

Chart 18: Mainland China’s integrated circuit manufacturing sales and year-on-year growth rate

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Chart 19: SMIC’s annual revenue and year-on-year growth rate from 2011 to 2022

Data source: SMIC financial report, Dongguan Securities Research Institute

Industry competition landscape: TSMC is the dominant player, while SMIC and Hua Hong Semiconductor are rising rapidly. Integrated circuit manufacturing requires thousands of steps. Close cooperation and error control between each link require a lot of experience accumulation. Errors in any step may lead to a significant decline in chip yield, so it has a very high technical threshold. In addition to technology, the semiconductor manufacturing process also has extremely high financial requirements. The capital expenditure to build a wafer factory requires billions or even tens of billions of dollars. Extremely high technical and financial barriers have led to extremely high industry concentration. Currently, the industry presents a competitive landscape dominated by TSMC, which maintains dual leadership in process technology and market share. According to Trendforce data, TSMC achieved revenue of US$19.962 billion in 22Q4, with a market share of 58.5%, a year-on-year increase of 2.4pct, far ahead of other foundry manufacturers; in terms of domestic investment, the mainland semiconductor manufacturing industry is represented by SMIC and Hua Hong Semiconductor , in recent years, process technology has been continuously improved, production scale has continued to expand, and rapid rise has been achieved. In the fourth quarter of 2022, SMIC and Hua Hong Semiconductor achieved revenue of US$1.621 billion and US$882 million respectively, ranking fifth and sixth in the world respectively.

Chart 20: Revenue ranking of the world’s top ten wafer foundries in the fourth quarter of 2022

Data source: Trendforce, Dongguan Securities Research Institute

Note: Power Semiconductor includes foundry revenue; Huahong Group includes Huahong Grace and Shanghai Huali

Integrated circuit packaging and testing: Benefiting from industry transfer, the growth rate of my country's IC packaging and testing industry is higher than the global average. The packaging and testing industry is located downstream of the semiconductor manufacturing process and requires a large amount of equipment and personnel investment. It is a capital-intensive and personnel-intensive industry. Compared with other fields of integrated circuits, the threshold for packaging and testing is relatively low. It is the field with the highest technological maturity in the domestic semiconductor industry chain and the easiest place to achieve domestic substitution. In the past decade or so, driven by the transfer of the semiconductor industry, human resource cost advantages, tax incentives and other factors, global integrated circuit packaging and testing production capacity has gradually transferred to the Asia-Pacific region. my country's IC packaging and testing industry started early, relying on labor cost advantages and vast market The downstream market has undertaken a large number of packaging and testing order transfers, so it has developed relatively rapidly, and the market size has grown steadily in recent years. In recent years, the global integrated circuit packaging and testing industry has entered a period of steady development, with a compound growth rate of 4.27% in industry market size from 2014 to 2021. my country has benefited from the booming development of downstream smartphones and other terminal applications, and the growth rate of the packaging and testing industry leads the world. According to statistics from the China Semiconductor Industry Association, the annual sales of China's integrated circuit packaging and testing industry increased from US$125.6 billion in 2014 to US$276.3 billion in 2021. The growth rate from 2014 to 2021 is approximately 11.92%, which is much higher than the global sales during the same period. With the continuous development of downstream applications and the continuous advancement of advanced packaging technology, the domestic packaging and testing industry has broad room for growth.

Chart 21: Global integrated circuit packaging and testing industry market size and year-on-year growth rate from 2014 to 2021

Data source: Yole, Dongguan Securities Research Institute

Chart 22: China’s integrated circuit packaging and testing sales and year-on-year growth rate from 2014 to 2021

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Packaging and testing is the most competitive segment in my country's integrated circuit field, with four manufacturers ranking among the top ten in the world in terms of revenue. At present, the overall domestic self-sufficiency rate in my country's integrated circuit field is low, especially in semiconductor equipment, materials and wafer manufacturing, which is far behind the international leading level. Packaging and testing is the most internationally competitive link in my country's integrated circuit field. In recent years, several leading domestic packaging and testing companies, represented by Changdian, have continued to make efforts in the field of advanced packaging through independent research and development, mergers and acquisitions, and now have strong market competitiveness and the ability to participate in international market competition. According to data from Core Thought Research Institute, in 2022, 4 companies in mainland China will enter the top ten global packaging and testing manufacturers, namely Changdian Technology, Tongfu Microelectronics, Huatian Technology and Zhilu Packaging and Testing, and the annual revenue breakdown 3rd, 4th, 6th and 7th in the world.

Chart 23: Estimated ranking of the top ten global closed beta tests in 2022

Data source: Core Thought Research Institute (January 2023), Dongguan Securities Research Institute

Note: Zhilu’s sealing and testing revenue includes UTAC and Riyuexin Semiconductor

my country's integrated circuit market continues to grow, and the industrial structure continues to be optimized. According to data from the China Semiconductor Industry Association, my country's integrated circuit sales increased from 142.40 billion yuan to 1.04583 billion yuan from 2010 to 2021, with a compound annual growth rate of 19.87%. After taking the lead in experiencing global industrial transfers and multiple industry mergers and acquisitions, the integrated circuit packaging and testing industry has become my country's most globally competitive semiconductor segment. Before 2016, sales ranked first among the three major sectors; in recent years, The rapid rise of domestic IC design companies represented by Huawei HiSilicon has led to a rapid increase in the sales proportion of the IC design industry. In 2016, the sales scale surpassed the packaging and testing industry to rank first; while local chip companies such as SMIC and Hua Hong Semiconductor have The rise of round factories has also driven the growth of the market size of my country's integrated circuit manufacturing industry, surpassing IC packaging and testing to rank second in 2020. The increase in the proportion of integrated circuit design and manufacturing industries with higher added value shows that my country's IC industry structure is gradually optimizing, and has continued to develop from a single-dominated model in the packaging and testing industry to a complete integrated circuit industry that simultaneously develops IC design, manufacturing and packaging and testing industries. chain.

Chart 24: Sales of various aspects of integrated circuits in my country

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Chart 25: Sales proportion of various aspects of integrated circuits in my country

Data source: China Semiconductor Industry Association, Dongguan Securities Research Institute

Semiconductor market size

After the 21st century, the global semiconductor industry continues to shift to mainland China. Throughout the development history of the global semiconductor industry, it has experienced several rounds of industrial transfers from the United States to Japan, South Korea, Taiwan, and mainland China. Currently, mainland China has become one of the most important semiconductor application and consumer markets in the world. According to IC Insights data, a total of 23 12-inch wafer fabs are in production in mainland China in 2022, with a total monthly production capacity of approximately 1.042 million wafers. The International Semiconductor Industry Association (SEMI) predicts that by 2026, 12-inch wafer fabs in mainland China will have a monthly production capacity of approximately 1.042 million pieces. The production capacity is expected to reach 2.4 million yuan, and the global proportion will increase to 25%. Generally speaking, the cycle from establishment to production of a new wafer factory is about 2 years. Therefore, my country's wafer manufacturing capacity is expected to continue to grow in the next few years, and drive the development of upstream semiconductor equipment and materials.

Figure 26: Regional transfer process of global semiconductor industry

Data source: Shengmei Shanghai Prospectus, Dongguan Securities Research Institute

China's integrated circuit production has increased rapidly, and its share of global semiconductor sales has increased. Benefiting from the booming development of consumer electronics, PC and other markets, as well as the continuous advancement of domestic substitution, my country's integrated circuit output increased from 71.952 billion pieces to 324.19 billion pieces from 2016 to 2022, with a compound annual growth rate of 12.08%; in terms of market size, my country's semiconductor industry The sales growth rate is higher than the global average, and the global share has increased. In the second quarter of 2014, my country's semiconductor sales accounted for 26.37% of the world, which increased to 35.52% in the second quarter of 2020. Although the proportion of global sales has declined since 2022, it still remains at around 30%.

Chart 27: my country’s integrated circuit output is increasing rapidly

Data source: National Bureau of Statistics, Dongguan Securities Research Institute

Chart 28: China’s semiconductor sales and global share from 2014 to 2022

Data source: WSTS, Dongguan Securities Research Institute

Semiconductor IC has become my country's largest trade deficit commodity, with a huge supply gap. In recent years, the import value of integrated circuits has surpassed commodities such as crude oil, complete automobiles and auto parts, becoming my country's largest imported commodity category. According to data from the General Administration of Customs, my country's integrated circuit imports have grown rapidly in recent years, and trade has expanded year by year, from US$127.74 billion in 2010 to US$261.661 billion in 2022. Strong downstream market demand and a low self-sufficiency rate have formed a Huge gap. Due to the huge supply gap and trade deficit in the integrated circuit industry, it is urgent for my country to develop the integrated circuit industry, and enterprises related to the industry chain are facing opportunities.

Judging from the import and export breakdown of components announced by the General Administration of Customs (processors, controllers, memories, amplifiers, other integrated circuits and integrated circuit parts), the import value of processors and controllers was US$205.1 billion, accounting for 49.2%. A year-on-year increase of 2.7%; memory import value was US$101.3 billion, accounting for 24.3%, a year-on-year decrease of 7.1%. The trade deficit of processors and controllers was US$152.8 billion, while the trade deficit of memory dropped to 31 billion yuan. It can be seen that my country's integrated circuit field has become more independent and controllable in terms of memory, but its dependence on external parties in terms of processors, controllers, etc. is still relatively high.

Chart 29: China’s integrated circuit import and export volume (100 million U.S. dollars)

Data source: General Administration of Customs, Dongguan Securities Research Institute

Sanctions in the overseas technology field have intensified, restricting the development of domestic advanced semiconductor processes . In recent years, Sino-US friction has intensified, and the United States has imposed more restrictions on China in the high-tech field, attempting to restrict the development of the domestic integrated circuit industry by increasing sanctions. In December 2020, the United States included SMIC in the "Entity List", restricting the company's expansion of 14nm and below semiconductor processes; in August 2022, the United States signed the "Chip and Science Act", which is mainly used to enhance domestic wafer production in the United States. It also clearly stipulates that companies that receive U.S. government subsidies are not allowed to expand chip manufacturing below 28nm in mainland China within 10 years. The signing of the "Chip Act" further intensified the degree of decoupling between China and the United States in the high-tech field, resulting in restrictions on the development of domestic advanced chip processes.

Chart 30: Overseas sanctions restrict the development of my country’s semiconductor industry

Data source: "Research on Cross-Strait Semiconductor Industry Development Issues Under Sino-US Strategic Competition", U.S. Department of Commerce, Dongguan Securities Research Institute

集成电路战略地位显著，多项政策出台产业发展。 集成电路产业战略地位显著，为鼓励集成电路产业发展，推进自主可控，摆脱受制于人的情况，国家先后出台一系列集成电路投资税收减免、政府补贴相关政策，举国之力保障供应链安全，促进行业健康发展。

Chart 31: my country has promulgated a number of policies to promote the development of the integrated circuit industry.

Data source: Government website, Dongguan Securities Research Institute

Semiconductor equipment: can be divided into front-end/back-end equipment and is the main source of expenditure for wafer line expansion. Semiconductor equipment is divided into front-end wafer manufacturing equipment and back-end packaging equipment. The front-end equipment includes photolithography machines, etching machines, CVD equipment, PVD equipment, ion implantation equipment and CMP grinding equipment, etc., and the back-end equipment includes testing machines. , probe station and sorting machine, etc. According to SEMI, in a semiconductor production line, semiconductor equipment investment accounts for as much as 80%, and factory buildings and other expenses only account for 20%. Among front-end manufacturing equipment, the top three investment proportions are photolithography machines, etching machines and PVD equipment, accounting for 30%, 20% and 15% respectively, followed by CVD, measurement equipment and ion equipment. Implanters, CMP and diffusion/oxidation equipment.

Figure 32: Proportion of wafer fab capital expenditures

Data source: SEMI, Dongguan Securities Research Institute

Chart 33: Proportion of equipment investment in front-end equipment

Data source: WSTS, Dongguan Securities Research Institute

Industry competition landscape: Overseas manufacturers have obvious first-mover advantages, and domestic substitution is imminent. Semiconductor equipment has extremely high requirements in terms of quality, parameters and operational stability. Therefore, the industry has high technical barriers and requires a large investment in R&D and purchase of raw materials and components. Downstream customers will not easily change manufacturers after certification. Therefore, companies with certain customer stickiness and first-mover advantages are more likely to maintain and consolidate their advantages.

From the perspective of industry competition, the global semiconductor equipment market is extremely concentrated. There are generally no more than 5 major participating manufacturers in a single equipment. The United States, Japan, and Europe maintain technological leadership. Representative manufacturers include Applied Materials (USA) and ASML. (Netherlands), Lam Semiconductor (USA) and Tokyo Electronics (Japan), etc. According to data from CINNO Research, the total revenue of the top 10 semiconductor equipment businesses of global listed companies will reach US$103 billion in 2022, a year-on-year increase of 6.1%, and all come from the United States, Japan and the Netherlands. In terms of revenue, the semiconductor business revenue of the top four equipment manufacturers in 2022 has exceeded US$16 billion.

Chart 34: Top 10 semiconductor equipment business revenue of global listed companies in 2022

Data source: CINNO Research, Dongguan Securities Research Institute

Mainland China is the world's largest semiconductor equipment sales market, with strong demand for equipment procurement. According to data from the International Semiconductor Industry Association (SEMI), my country's semiconductor equipment sales increased from 4.05% in 2005 to 26.26% in 2022, with sales reaching US$28.3 billion in 2022, becoming the world's largest semiconductor equipment market for three consecutive years. There is a large supply and demand gap between the strong demand in the domestic semiconductor equipment market and the low domestic supply, and there is broad room for domestic substitution.

Chart 35: Mainland China’s semiconductor equipment sales and changes in global proportion

Data source: SEMI, Dongguan Securities Research Institute

Chart 36: Mainland China is the world’s largest semiconductor equipment sales market (2022)

Data source: SEMI, Dongguan Securities Research Institute

Chart 37: Semiconductor equipment sales by region in the world in 2022 (USD 100 million)

Data source: SEMI, Dongguan Securities Research Institute

Semiconductor materials: There are many subdivided fields, and the gaps between various sub-industries are large. The semiconductor materials industry is located in the upstream of the semiconductor industry chain. It is the most subdivided link in the semiconductor industry chain, with hundreds of sub-industries. According to major categories, semiconductor materials mainly include wafer manufacturing materials and semiconductor packaging materials. Among them, wafer manufacturing materials include silicon wafers, photomasks, photoresists, electronic special gases, targets, and CMP polishing materials (polishing fluid and polishing materials). pads), etc., and packaging materials include packaging substrates, lead frames, bonding wires, packaging resins, etc. According to data from the International Semiconductor Industry Association (SEMI), the top five global wafer manufacturing materials in value in 2020 are: silicon wafers (35%), electronic special gases (13%), photomasks (12%), and photolithography Adhesive auxiliary materials (8%) and wet electronic chemicals (6%). The top five packaging materials market sizes are: packaging substrate (48%), lead frame (15%), bonding wire (15%), packaging Resin (10%) and ceramic encapsulation (6%). Since there are many semiconductor material sub-industries and there are large gaps between each sub-sector, the leaders of each sub-industry are different.

Chart 38: Market share of wafer manufacturing materials in 2020

Data source: SEMI, Dongguan Securities Research Institute

Figure 39: Market share of packaging materials in 2019

Data source: Wind, Dongguan Securities Research Institute

Semiconductor materials: Core materials are highly dependent on imports, and there is broad room for domestic substitution. The technical barriers to semiconductor core materials are extremely high, the self-sufficiency rate of most domestic products is low, and the market is monopolized by overseas manufacturers from the United States, Japan, Europe, South Korea and Taiwan. Taking semiconductor silicon wafers, the largest wafer manufacturing material, as an example, the top five manufacturers account for more than 95%, among which the top three Japan's Shin-Etsu Chemical, SUMCO and Taiwan's Global Wafers together account for 74% of the global share (2020 data, SEMI), domestic enterprises, represented by the Shanghai Silicon Industry, are still far behind the international leading level; in the field of packaging substrates, which is relatively dispersed, the top seven manufacturers account for close to 70%, mainly dominated by Taiwan, Japan and South Korea. Manufacturers occupy. Domestic semiconductor material companies have only achieved self-production and sales in some fields. They have made great breakthroughs in target materials, electronic special gases, CMP polishing materials and other subdivided products. The technical standards of some products have reached the international first-class level, and local production lines have achieved Available in large quantities.

Figure 40: Competitive landscape of silicon wafer field in 2020

Data source: DEALLAB, Dongguan Securities Research Institute

Figure 41: Packaging substrate competition landscape in 2020

Data source: Prismark, NTI, Dongguan Securities Research Institute

Source: Dongguan Securities Research Institute

*Disclaimer: This article is original by the author. The content of the article is the personal opinion of the author. The reprinting by Semiconductor Industry Watch is only to convey a different point of view. It does not mean that Semiconductor Industry Watch agrees or supports the view. If you have any objections, please contact Semiconductor Industry Watch.

Today is the 3429th issue shared by "Semiconductor Industry Observation" with you. Welcome to pay attention.

Latest articlesabout

■SiC giant, rebirth: how to predict the future?

■Apple chips may hit Qualcomm hard

■Chip cost per car: soaring to $1,000

■TSMC 2nm, important information

■Huang Renxun's latest views

■The risks of this type of chips that are promising have increased significantly!

■NPU, how to see it?

■Storage giants are abandoning DDR 4

■Intel, why?

■Nvidia will definitely be disrupted

最新精华更多

Understand the semiconductor industry chain in one article

Latest articlesabout