In the post-epidemic era, the Jiwei Summit will discuss semiconductor industry investment and financing

On June 25-26, the 2021 Fifth Jiwei Semiconductor Summit will be held in Haicang, Xiamen. This summit is themed "The Heart and the Core are the Kunpeng", with "12 highlights". As one of the special links added this time, the "Investment and Financing Special Forum" is themed "Semiconductor Investment in the Post-epidemic Era". It will gather well-known domestic and foreign investment institutions, top experts and scholars, cutting-edge high-tech companies, etc. to jointly seek new investment directions in the market. At that time, well-known institutions such as Yuanhe Puhua, Zhongxin Juyuan, Weihao Chuangxin, Heli Capital, Juntong Capital, Lightspeed China, Huaxing Capital, Huatai Securities, and Haitong Securities will share new opportunities for investment in the semiconductor industry.

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As we all know, semiconductors, as the core foundation of the information technology industry, can play an important role in many industries such as 5G, new energy vehicles, artificial intelligence, and the Internet of Things, and have become a hot track that the investment community pays attention to.

Especially under the background of the continued global chip shortage caused by the impact of the epidemic, domestic capital has continued to increase investment in the semiconductor industry. Whether in the primary market or the secondary market, investment in the semiconductor industry is very hot. Data shows that in 2020, there were 413 equity investment cases in the semiconductor industry, with an investment amount of more than 140 billion yuan, an increase of nearly 4 times compared with the investment amount of about 30 billion in 2019.

At the same time, benefiting from the launch of the Science and Technology Innovation Board, semiconductor companies have opened up a new channel for listing, and investment institutions have a more complete mechanism for exiting, which has also led to an abnormally hot investment in the semiconductor field. As of now, there are 289 companies listed on the Science and Technology Innovation Board , of which 50 are semiconductor companies, accounting for 17.3% ; their total market value has reached 1,177.322 billion yuan, accounting for 27.52% of the total market value of the Science and Technology Innovation Board . Among the top 20 companies in terms of market value on the Science and Technology Innovation Board, there are 7 semiconductor companies, namely SMIC, China Resources Microelectronics, Shanghai Silicon Industry, AMEC, Montage Technology, Everdisplay Optoelectronics, and Cambrian.

In terms of initial public offering funds, the 50 semiconductor companies listed on the Science and Technology Innovation Board raised a total of 119.37 billion yuan in initial public offering funds, accounting for 32.65% of the total fundraising scale of Science and Technology Innovation Board listed companies. Among the top 20 companies in terms of initial public offering funds, there are 6 semiconductor companies, namely SMIC, Everdisplay Optoelectronics, Hengxin Technology, China Resources Microelectronics, Montage Technology and Cambrian.

Overall, the power of capital has boosted the development of the semiconductor industry, while companies' own development needs and environmental changes have also brought more investment opportunities.

However, it is worth noting that most domestic investments are focused on the design field. It is important to know that the birth of a chip requires the design, manufacturing, packaging and testing process. Manufacturing, materials and equipment are the weakest links in China and the links that need to be broken through the most. The US sanctions on Huawei and the restrictions on SMIC's equipment purchases have revealed the weakness of the domestic manufacturing link.

However, driven by relevant policies, the domestic manufacturing sector is accelerating financing and expanding production. For example, Jinghe Integrated Circuit plans to raise 12 billion yuan for the construction of a 12-inch wafer manufacturing plant; Hefei Changxin has launched a new round of 10 billion yuan financing on the basis of completing 15.6 billion yuan in financing in December last year; SMIC has invested 49.7 billion yuan to build SMIC Beijing; China Resources Microelectronics has invested about 10 billion yuan in the construction of a 12-inch power semiconductor wafer production line in Chongqing Xiyong Micro-Electronic Park; Wingtech Technology has broken ground on its 12-inch wafer factory; Yangtze Memory Technologies and Huahong Semiconductor have expanded their production capacity, etc. This means that the domestic manufacturing sector will usher in a new stage of development.

The accelerated expansion of the manufacturing sector, coupled with the trend of domestic substitution, is expected to drive the development of upstream equipment, materials, domestic EDA tool software and other companies. For example, Runshi Technology, Yuanzhuo Optoelectronics, Jingyan Intelligence, Yinguan Semiconductor, Plasma Intelligence, and New Micron in the equipment field, Tongguang Crystal, Xinyuanji, Dingtai Xinyuan, Dingcai Technology, and Xinhua Semiconductor in the materials field, and Xinhuazhang, Feipu Electronics, Xinxingji, Xinhe Semiconductor, and Guowei Sierxin in the EDA field have all quickly obtained financing. In the future, with the influx of capital, more high-quality companies will also accelerate their growth.

At present, driven by industries such as 5G, AI, and new energy vehicles, the domestic semiconductor industry is in a stage of rapid development. For investors, in addition to the design link, semiconductor equipment, materials, and high-end chip fields such as CPU, DSP, FPGA, and MEMS are also good investment areas. In addition, what new investment opportunities are there in the post-epidemic era? And how can investors seize the opportunities?

At the 5th Jiwei Semiconductor Summit held on June 25-26, the "Investment and Financing Special Session" will bring together top domestic and foreign experts and scholars, well-known investment institutions, and corporate executives to jointly conduct in-depth interpretation of the investment status, market changes, and development opportunities of the semiconductor industry.