The first chip company in A-shares has broken through the 200 billion yuan market value mark!

On July 9, the three major A-share indexes continued their upward trend, with the Shanghai Composite Index closing up 1.39% at 3450.59 points, the Shenzhen Component Index up 2.60% at 13754.74 points, and the ChiNext Index up 3.98% at 2757.65 points. The turnover of the Shanghai and Shenzhen stock markets exceeded 1.5 trillion for four consecutive days, reaching 1.72 trillion today. Almost all industry sectors rose, with the semiconductor sector up 3.62%, leading the way.

At the same time, many stocks in the semiconductor sector hit the daily limit, including Ziguang Guwei, Wingtech Technology, Jingfang Technology, GCL Integration, Feikai Materials and many other stocks hit the daily limit, and IC concept stocks such as Beijing Junzheng, Gokewei, Saiwei Electronics, Silan Microelectronics, Goodix Technologies, and Will Technology all achieved a big rise. Amid the surge in semiconductor stocks, Will Technology, which was not at the top in terms of growth, became the "most expensive" semiconductor company in the A-share market.

As of today's closing, Will Semiconductor closed at 240.84 yuan per share, up 4.03%, with a total market value of 207.984 billion yuan, officially becoming the first semiconductor company in the A-share market to reach a market value of 200 billion yuan.

In recent days, the share price of Will shares has been setting new historical highs, breaking through the 200 billion yuan market value mark several times during the trading session, but falling back at the end of the trading session. Until today's close, Will shares officially stood firm at the 200 billion yuan market value mark. This is not only the capital market's affirmation of Will shares' value, but also the best proof of Will shares' current performance and future development prospects.

Since the beginning of 2019, with the smooth progress and consolidation of the transaction plan of the merger and reorganization of OmniVision Technologies and Sipix, Will Semiconductor's stock price has repeatedly hit new highs, from 27.44 yuan/share at the beginning of 2019 to 116.85 yuan/share on July 7, 2019, and Will Semiconductor's total market value has exceeded 100 billion yuan. One year later (July 9, 2020), Will Semiconductor's stock price has doubled again, and its total market value has reached 200 billion yuan, setting a new high in market value for A-share semiconductor companies.

In fact, the reason why the capital market continues to be optimistic about Will Semiconductor is directly related to its multiple strategic mergers and acquisitions. Last year, Will Semiconductor acquired OmniVision Technologies and Sipix, and achieved listed company consolidation in Q3. OmniVision Technologies is one of the top three CIS chip (CMOS image sensor) manufacturers in the world, second only to Sony and Samsung; coupled with Sipix's market accumulation, after the merger and integration, Will Semiconductor is the leader in domestic image sensor chips.

Since the beginning of this year, Will Semiconductor has once again invested in the acquisition of Synaptics TDDI business. Will Semiconductor signed an agreement with Huachuang Technology Co., Ltd. through its wholly-owned overseas subsidiary Hong Kong Will Semiconductor Co., Ltd. to jointly invest USD 120 million to acquire Synaptics' single-chip LCD touch and display driver integrated chip business based in Asia. Among them, Hong Kong Will Semiconductor Co., Ltd. contributed 70%.

From CIS chips to TDDI, both are high-quality businesses with high technical barriers and huge market demand around mobile terminals. The two can achieve the coordinated development of CIS sensing + touch display chips. Benefiting from the downstream camera demand for multiple cameras and high-pixel lenses and domestic substitution, the company continues to increase research and development, launch high-end CIS chips, and rely on products, prices, domestic substitution and other advantages to continuously narrow the gap with international manufacturers while bringing about an increase in both volume and price, achieving multiple growth in performance.

Driven by the CIS chip business, in the first quarter of this year, Will Semiconductor achieved revenue of 3.817 billion yuan, a year-on-year increase of 44.21%; net profit of 445 million yuan, a year-on-year increase of 800.03%; net profit after deducting non-recurring gains and losses was 436 million yuan, a year-on-year increase of 1530.80%.

In contrast, the TDDI business is also full of expectations. Synaptics' TDDI chip customers are well-known mobile phone manufacturers such as Huawei, OPPO, Samsung, and Xiaomi. It has created a full range of high, medium and low-end product series, and can help customers customize each generation of products, and has obtained certification from a large number of brand customers. CIS chips and TDDI touch display chips will move forward in synergy, which will undoubtedly refresh the industry's performance expectations for Will Semiconductor, realize the industrial structure of CIS chips + TDDI dual leaders, and promote Will Semiconductor to continue to grow exponentially. This may be the reason why the industry and capital markets recognize and continue to increase their investment.

At present, there are many semiconductor companies with market value exceeding 100 billion yuan in A-shares, such as GigaDevice, Goodix Technology, Wingtech Technology, AMEC, Montage Technology, and North Huachuang. After Will Semiconductor became the first chip company with market value exceeding 200 billion yuan in A-shares, the second, third, and even more companies will appear in the future. So after Will Semiconductor, who will be the second semiconductor company with market value exceeding 100 billion yuan in A-shares?

As of today's close, in addition to the sharp rise in Will shares, Wingtech Technology hit the daily limit, closing at 160.03 yuan per share, with a total market value of 179.88 billion yuan, becoming the semiconductor company closest to 200 billion yuan in A-shares. Driven by the dual leadership of Wingtech ODM + Anshi IDM, Wingtech Technology's performance will soar, and it is expected to quickly become a semiconductor company with a market value of 200 billion yuan in A-shares. In addition, SMIC will be officially listed on the Science and Technology Innovation Board on July 16, and its market value will exceed 200 billion yuan on the day of listing.

A single tree cannot make a forest. In the future, with the new infrastructure + domestic substitution, as well as the construction of 5G base stations and terminal shipments, the performance of a large number of excellent chip companies will continue to increase significantly, and their corporate valuations will accelerate along with the prosperity of semiconductor concepts. There will be more semiconductor companies with a market value of 100 billion, 200 billion, or even 500 billion in the A-share market.

As Wang Yanhui, Secretary General of the China Semiconductor Investment Alliance, said: Compared with a few years ago, China's semiconductor industry has made great progress. Only the emergence of a group of companies with a market value of hundreds of billions can represent the real results of China's semiconductor rise, and it is also the first step for Chinese semiconductor companies to become bigger and stronger. However, these few companies are far from enough. China needs more companies with a market value of over hundreds of billions to be considered the phased results of the industry's development.