Semiconductor Price Rising Tide In The New Year: Chain Reaction Of Industry Chain Intensified By Several Listed Companies Sending Letters To Raise Prices

Semiconductor prices continue to rise.

At the turn of the year, several semiconductor manufacturers, such as xinjieneng, huiding technology, shilanwei and Fuman electronics, issued price increase notices. Ziguang Guowei said that it was possible to raise the price of some products.

The direct benefit of the price increase is the performance improvement of semiconductor manufacturers. On the evening of January 4, the performance forecast released by Yangjie technology shows that the net profit in 2020 will increase by 60% - 85% year-on-year, mainly due to the acceleration of domestic substitution of power semiconductors and the pull of downstream market, and the company has sufficient orders.

In the secondary market, the semiconductor plate trend is gratifying. On January 5, in terms of the industry, the semiconductor index and electronic component index increased by more than 3%, the sensitive chip shares and jiejie micro electric increased by more than 14%, and the trading limits of Schlumberger, Weill, Jingfang technology, China Ceramics electronics, Shennan circuit, etc. In terms of concept plate, the IGBT index increased by 4.78%, and Yangjie technology, xinjieneng, Wentai technology, star semiconductor, Taiji and BYD increased by more than 6%.

Several companies are happy and a few are worried. The price rise of upstream chips directly affects the downstream "core using" industry. The shortage of automobile chips has caused widespread concern in the market. In fact, not only the automobile industry, but also the household appliances, smart phones and other industries will be affected by the chip "off supply".

How does the industry view this price rise? How will the price surge evolve this year? What impact will it have on the upstream and downstream of the industrial chain? The above questions may become the key issues throughout the development of semiconductor industry this year.

Semiconductor prices continue to rise. Visual China

Good for semiconductor manufacturers

Affected by the continuous shortage of upstream wafer supply, a number of domestic semiconductor manufacturers have recently issued price increase notices.

On December 28, 2020, huiding technology, a leading enterprise of fingerprint chips under the screen, issued a product price increase notice, which raised the US dollar price of GT9 series products by 30% on the basis of the current price. Since 0:00 on January 1, 2021, the price adjustment scheme is applicable to the company's system delivery orders.

Huiding technology said that the prices of upstream suppliers such as wafer factories and sealing and testing plants continued to rise substantially, resulting in the company's product costs increasing. In the several waves of price rise before October 2020, the company withstood the pressure and never raised the price of products. However, as of December, the company still received price increase notices from suppliers, and the pressure of cost rise continued to exist. Combined with objective factors such as tight supply chain capacity, the company decided to adjust relevant products.

Coincidentally, on December 9, 2020, the leading domestic power semiconductor company said that the cost of related products of the company was continuously rising, and the price of Sgt MOS products rose by 20% this month from now on. On December 16, fullman electronics also said in the product contact letter that since January 1, 2021, the price of all products including tax will be increased by 10% on the basis of the current price, so as to work with industry chain partners to jointly cope with the cost pressure.

Main MOSFET, IGBT and other products of new clean energy is also raising prices. According to a price adjustment notice circulated on the Internet, since January 1, 2021, the company's product prices will be adjusted to varying degrees according to specific product models. Since the price rise date, the adjusted prices will be implemented for all deliveries, and the adjusted prices will also be implemented for outstanding orders in the system.

On January 5, Xiao Dongge, the new Jieneng Dong secretary, confirmed the authenticity of the above price increase letter in an interview with the 21st century economic report reporter.

The price rise is coming. According to Xiao Dongge's analysis, there are two main reasons: demand and supply. On the demand side, the rise of "housing economy" under the epidemic situation, the change of personal travel mode and the negative impact of the epidemic on overseas production have led to the increase of relevant demand; in addition, the rise of downstream new applications such as 5g and new energy vehicles has also played a positive role in the market prosperity. On the supply side, 6-inch Fabs are gradually decreasing, 8-inch Fabs are increasing slightly, and 12 inch Fabs are just emerging, which can not meet the growth of related demand. Combined with the above situation, he believes that this boom is caused by the above comprehensive factors.

Xiao Dongge specially mentioned that the industry prosperity has been improved and the process of domestic substitution has played an important role. "After the ZTE and Huawei incidents in 2018, many well-known domestic big customers began to turn their attention to domestic electronic component suppliers. However, large customers usually have a long assessment cycle, and this is the time point for some large customers to start gradually."

Under the rising price tide, the performance of the above semiconductor manufacturers also showed an upward trend.

Yangjie technology, the leading power device maker in China, expects to achieve a net profit of 360 million yuan to 417 million yuan in 2020, with a year-on-year increase of 60% - 85%. The main reason is to benefit from the acceleration of domestic substitution of power semiconductor and the pull of downstream market.

Xiao Dongge also said, "the price increase strategy adopted this time will have a positive impact on the company's gross profit margin.".

Ziguang Guowei is mainly engaged in the design and sales of integrated circuit chips. The company also said on the interactive platform that the supply capacity of chip products was affected, and some products of the company could not rule out the possibility of price increase. In view of the company's high chip market share and strong demand rigidity, it has a driving effect on the company's revenue growth.

The chain reaction intensified

The upstream semiconductor manufacturers are making a lot of money, while the downstream core industry is quite "injured", which is typical of the automobile industry.

At the end of last year, Volkswagen announced that it had to adjust the production plans of some factories in China, North America and Europe in the first quarter of next year due to the global supply bottleneck of computer chips.

Li Shaohua, Deputy Secretary General of CAAC and Minister of industry development, said in an interview a few days ago that "due to the superposition of multiple factors, the contradiction between chip supply and demand has emerged in this period of time. Due to the shortage of chip supply, the production of some enterprises may be greatly affected in the first quarter of next year. However, as far as the whole of next year is concerned, the impact of chip shortage will not be too big, and it is difficult to make quantitative estimation at present. "

On the interactive platform of Shanghai Stock Exchange and Shenzhen Stock Exchange, automobile industry chain companies such as GAC group, Changshu automobile accessories and bertley were asked by investors about the impact of chip off supply.

Bertley, which mainly deals in automobile brake products, answered questions from investors on the interactive platform on January 4, saying that the company's electronic control products involved chips have sufficient inventory, and the shortage of chips has not had a substantial impact on the company's production and operation.

In fact, the reporter learned that not only the automotive industry is short of cores, but also the manufacturers of home appliances, smart phones, computers and other electronic equipment are facing the pressure of chip shortage. In order to stabilize market sentiment, a number of downstream enterprises publicly said that they were actively responding.

For example, Tuobang shares, which is mainly engaged in intelligent controller and motor products, said, "chip shortage and price rise are industry phenomena. The company has actively responded by means of integrated supply chain procurement, advance stock preparation and domestic substitution, and has not had a significant impact on the order delivery in the fourth quarter (2020)"

How long will the price rise last? The judgment of upstream semiconductor manufacturers on the industry prosperity may be used as an observation perspective.

"In terms of orders in hand, the first half of this year is relatively good. I'm optimistic about the situation in the second half of the year, which depends on the order duration. " Said Xiao Dongge.

Tianfeng securities recently reported that the rise in semiconductor chip prices reflects the prosperity of the industry. Price rise is the appearance, and the relationship between supply and demand is the core. The industry prosperity lasts for two quarters, and the probability rate will be transmitted upward to the links of materials and equipment.

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