Foreign media: China’s vigorous development of the chip industry is disrupting the market?

On June 17th, the domestic stock market soared semiconductors, and the semiconductor ETE rose very sharply. Chip stocks even took the lead in the whole day and pulled up strongly, soaring by 4% in an instant. The Growth Enterprise Market also surged by 2%. In addition, Shanghai Belling and many other stocks have already closed their boards, which is not common in chip stocks.

Since the comprehensive sanctions imposed by the United States on China’s chip industry in 2019, domestic semiconductor stocks have always been tepid and flat. After the United States issued sanctions orders, chip stocks are even more difficult to describe. Many people have already given up. And now semiconductor stocks suddenly soared beyond everyone’s expectations. The reason why chip stocks have risen across the board is just because of a hype in foreign media. Some foreign media said that China will focus on increasing support for semiconductors, especially the chip industry, and will arrange dedicated personnel to lead chip research and development projects in response to chip sanctions initiated by the United States. The way to support the development of the chip industry is mainly through increasing capital investment, cultivating special talents and other related strategies, to the greatest extent, catching up with foreign semiconductor technology in a short period of time. Foreign media: China’s vigorous development of the chip industry is disrupting the market? In addition, according to national media excerpts from some securities reports, several semiconductor manufacturers have recently issued successive price increases notices, including TSMC, Qualcomm and other chip foundries that have been unable to keep up with market demand. Despite the tight chip production capacity, the semiconductor stock market has risen all the way. Judging from the news published by domestic and foreign stock market institutions in the past two days, the attention of semiconductors will continue for some time to come. From 2020 to the first half of this year, due to the epidemic, many corporate schools require home office work, resulting in a surge in demand for electronic products such as mobile phones and computers, which has led to an increase in the demand for semiconductor products such as chips. According to the prediction of relevant departments, the world-wide core shortage will continue until 2023, and the current good weather in the semiconductor stock market will also continue. The price increase of the upstream semiconductor industry chain in foreign countries has seriously affected the price of the downstream industry chain. As early as last year, the price increase of foreign semiconductors has seriously affected the domestic semiconductor price. Among them, Anshi Semiconductor and Silan Microelectronics all issued price increase notices at the beginning of this month. Raw materials and auxiliary materials including product prices, packaging prices, etc. all have different price increases. And some companies have also notified that power semiconductors may increase prices due to the impact of semiconductor raw material prices in the near future. There are also foreign media reports that although the semiconductor field is not an emerging field, there is no single company or country in the world that completely monopolizes the semiconductor industry, and even some countries have a very weak semiconductor industry foundation. Since the epidemic, many semiconductor companies have been affected to reduce production, and Western countries led by the United States and the United States have imposed sanctions on Chinese chips. They not only imposed comprehensive restrictions on HiSilicon, but also affected the development of chip companies such as SMIC and seriously threatened Chinese chip technology. If China strives to break the technological barriers of the West, it is now the best opportunity. No matter now or in the future, China will be the country with the largest demand for chips in the world. Therefore, it has very high requirements for the stability of the supply chain. The need for self-research and self-production is becoming more and more urgent. In the eighteenth meeting held by the relevant departmental group in the middle of last month, it was clearly pointed out that the research and development progress and support of the semiconductor, especially the chip industry, should be strengthened, and the current chip technology should be innovatively advanced. Foreign media also took out of context, and hyped semiconductors, leading to carnivals. Foreign media took this opportunity to speculate and boost the semiconductor stock market to make huge profits. At the same time, professionals from China Semiconductor Lab also pointed out that this foreign media report is out of context and has ulterior motives. The person refuted the report that China’s “third-generation semiconductor” plan is already underway, and it is expected to invest US$1 trillion in funds for research and development. First of all, it is completely nonsense to invest one trillion US dollars, and the global semiconductor market investment is only more than 10 billion US dollars. At present, the reports of many media are vague and without any basis. They are deliberately speculating on the chip market to profit from it. The so-called “third-generation semiconductor” is not the more advanced generation that everyone imagines. In the international chip industry, there is no generation difference for chips, but there are differences in nanometer numbers of different specifications. The so-called “third-generation semiconductor” is just a difference in chip application scenarios. The first generation in our country is used in products such as mobile phones and computers, and the second generation is used in satellite, mobile and other communications fields. It is applied in fields such as new energy electric vehicles and subways. Under the situation that the global core shortage will continue for a long time, semiconductors are a good direction for investment, but in the face of opportunities, we also hope that everyone will be alert to the threats brought by hype.