The Jiwei Index fell 0.38% TSMC acquired Littelfuse's factory in Tainan Science Park

As of the close of August 13, the Shanghai Composite Index rose 0.04% to 3320.73 points, with a turnover of 387.162 billion yuan (the turnover on the previous trading day was 480.731 billion yuan); the Shenzhen Component Index fell 0.13% to 13291.32 points, with a turnover of 494.33 billion yuan (the turnover on the previous trading day was 602.93 billion yuan); the ChiNext Index fell 0.49% to 2622.64 points.

Judging from the market, agricultural planting, phosphorus chemical industry, and pork sectors performed strongly, while biological vaccines, photoresist, and hotel and catering sectors led the decline.

The semiconductor sector fell slightly. Jiwei.com selected 112 semiconductor companies from the fields of electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution for statistics, and their total market value fell by 0.60%.

Among the 112 semiconductor companies, the market value of 47 companies increased, with Heretech, Hony Semitek, Fudan Microelectronics, HC Semitek, and Wansheng Semitek ranking at the top of the gains; the market value of 63 companies decreased, with Xinyuan Micro, BDStar, Walt Gas, Wanye Enterprise, and Mulinsen ranking at the top of the declines.

In terms of capital inflow/outflow, the semiconductor sector had the largest net outflow, and the market performed poorly. According to data from Tonghuashun, the main net inflows of the planting and forestry, optical optoelectronics, agricultural product processing, and securities sectors were at the forefront, while the main net outflows of the biological products, non-ferrous metallurgy and processing, medical equipment services, and basic chemical sectors were at the forefront.

China Merchants Securities believes that the market is expected to continue to fluctuate upward. The market is still in the two-and-a-half-year upward cycle that started in early 2019, gradually shifting from liquidity-driven to fundamental-driven. Although the degree of monetary policy easing has weakened, incremental funds are still flowing into the market. China's economic data continues to improve, and corporate profit growth continues to pick up. More industries will see improvements in the upcoming second quarter reports. But we need to start paying attention to the marginal impact of increased stock market supply and increased reductions on market supply and demand for funds.

Global News

On August 11, after several delays, Biden finally announced Kamala Harris as his running mate for this year's presidential election. Harris will also become the first female minority vice presidential candidate in the history of a major American political party. After the announcement of this decision, the public opinion machines of both parties immediately took action. The Democratic Party generally praised Harris as Biden's wise choice, while conservative public opinion turned its firepower that had previously focused on attacking Biden to Harris.

Germany's Frankfurter Allgemeine Zeitung reported on the 12th that Germany will implement a two-stage approval model for technology and "political credibility" in the 5G network bidding. The law based on which the "political credibility" is reviewed may be the Cybersecurity Law promulgated by the German Ministry of the Interior. According to the law, only when multiple departments such as the German Chancellery and the Ministry of Foreign Affairs express opposition at the same time can a supplier that has passed the first stage of the review be vetoed. Since the German Chancellery and other departments have repeatedly emphasized that they will not issue a ban on Huawei, German media analysts believe that Germany will not "follow the trend" of Britain and the United States and ban Huawei.

The Ministry of Health, Labor and Welfare of Japan released data on the 12th, saying that as of the 7th, the number of people fired and suspended due to the spread of the new coronavirus reached 44,148, including the estimated number. This is an increase of 2,757 people from July 31st a week ago, including 1,548 informal employees such as temporary workers and dispatched employees, accounting for nearly 60%.

In the Asia-Pacific region, as of the close of August 13, the Hang Seng Index fell 0.08%, the Nikkei 225 rose 1.78%, and the South Korean Composite Index rose 0.21%.

In the U.S. stock market, as of Wednesday (August 12), the Dow Jones Industrial Average rose 289.93 points, or 1.05%, to 27,976.84 points; the Nasdaq Composite Index rose 229.42 points, or 2.13%, to 11,012.24 points; and the S&P 500 Index rose 46.66 points, or 1.40%, to 3,380.35 points.

U.S. stocks closed higher on Wednesday, with technology stocks leading the gains. The Nasdaq rose more than 2%, and the S&P 500 index approached its record closing high. News about vaccine progress has driven up risk sentiment in global markets. Vaccine company Moderna announced that it had received an order for 100 million doses of vaccine from the U.S. government, worth more than $1.5 billion.

The Philadelphia Semiconductor Index rose 72.43 points, or 3.36%, to 2,227.22.

Looking at individual stocks, the Philadelphia Semiconductor Index components rose more than fell, among which AMD, Qualcomm, and Nvidia led the gains, with AMD rising 7.45%; only Cree Technologies fell 0.44%.

In Europe, as of Wednesday (August 12), the three major European stock markets generally rose, with the UK FTSE 100 up 3.36%, France's CAC40 up 0.9%, and Germany's DAX up 0.86%.

Soros said on Wednesday he was done with market bubbles fueled by Federal Reserve liquidity and warned Trump "remains very dangerous" ahead of the November election. "We are in a crisis, the worst I have experienced in my lifetime since World War II. I describe it as a revolutionary moment, where the range of possibilities is much greater than usual. Things that are normally unthinkable are not only possible, but actually happening. People are disoriented and terrified. What they are doing is harmful to themselves and to the world."

Stock News/A Shares

Xinyuan Micro - Xinyuan Micro said on the interactive platform that "Fengtian No. 1" is a coating and developing machine developed by Xinyuan Micro for the front-end photolithography process. The company's front-end Barc (anti-reflective layer) coating equipment has passed the Shanghai Huali process verification and can meet the customer's 28nm technology node processing technology. The company's coating and developing machine 14nm process research and development has not yet officially started and is still in the planning stage.

Shengbang Shares - Recently, Shengbang Shares in the semiconductor industry released its interim report, achieving operating income of 466 million yuan in the first half of 2020, a year-on-year increase of 57.41%; net profit attributable to the parent was 105 million yuan, a year-on-year increase of 73.39%. In Q2 2020, the company achieved operating income of 273 million yuan, a year-on-year increase of 48.48% and a month-on-month increase of 41.38%; net profit attributable to the parent was 74 million yuan, a year-on-year increase of 67.00% and a month-on-month increase of 144.62%. Quite good performance. The company stated that it was smoothly advancing the research and development of new products such as ultra-low distortion dual-channel analog switches as planned, continuously developing new categories, and forming a more comprehensive analog chip product line layout. Benefiting from the relatively comprehensive product line layout coverage in the analog integrated circuit industry, the company's performance grew rapidly in the first half of the year.

Tongfu Microelectronics - Tongfu Microelectronics said on the interactive platform that the company is one of the most important partners of MediaTek's domestic packaging and testing business. Under the general trend of domestic substitution, the company will give priority to purchasing cost-effective domestic equipment, and Changchuan Technology is also one of its suppliers.

Stock News/Other

TSMC - According to Taipei Economic Daily, TSMC acquired Littelfuse's factory in Tainan Science Park. TSMC will demolish the existing factory building at the site and rebuild a new one in the future to meet Sony's demand for building a dedicated foundry.

Qualcomm - On August 11, the U.S. Federal Court of Appeals for the Ninth Circuit overturned the previous anti-competition lawsuit against Qualcomm by the federal district court, believing that the Federal Trade Commission did not have sufficient evidence to prove that Qualcomm was suspected of illegal monopoly. Qualcomm's stock price opened low and rose after hearing the news. When the Nasdaq fell 1.69% and the S&P 500 fell 0.80%, Qualcomm closed up 2.32% at $108.83 per share.

SK Hynix - On August 13, semiconductor company SiFive announced that it had received $61 million in Series E financing. This round of financing was led by SK Hynix, with participation from new investor Prosperity7 Ventures and existing investors Sutter Hill Ventures, Western Digital's venture capital arm, Qualcomm Ventures, Intel Capital, Osage University Partners and Spark Capital.

Jiwei.com has launched the Jiwei Semiconductor Industry Index!

Jiwei Semiconductor Industry Index, referred to as Jiwei Index, is a stock index launched by Jiwei.com to reflect the overview and operating status of the semiconductor industry in the securities market, and to help investors track the development of the semiconductor industry and use investment tools.

Jiwei.com observed and counted the overall performance of China's "core" listed companies in the A-share market over the past period of time, and referred to the company's total assets and revenue scale. It selected 30 companies from the sample library of 112 Jiwei.com semiconductor companies as components of the Jiwei Index.

The sample library covers all aspects of the semiconductor field, including electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution.