上市捷报丨沙利文祝贺合肥晶合集成电路股份有限公司成功登陆科创板(688249.SH)

Hefei Jinghe Integrated Circuit Co., Ltd. (Stock Code:688249.SH) on2023year5month5Rising Star Semiconductor successfully listed on the Sci-tech Innovation Board. Jinghe Integration Company is committed to developing and applying industry-leading processes, providing customers with wafer foundry services for various process nodes and different process platforms. The products manufactured by the company are widely used in fields such as liquid crystal panels, mobile phones, and consumer electronics, and have been recognized by many well-known semiconductor design companies at home and abroad. Frost & SullivanFrost & SullivanFrost & Sullivan, hereinafter referred to as 'Frost & Sullivan', hereby warmly congratulates the company on its successful listing.

Hefei Jinghe Integrated Circuit Co., Ltd. (hereinafter referred to as 'Jinghe Integrated') was established on2023year5month5The company was successfully listed on the stock market, with the number of shares issued being501,533,789share, issue price per share19.86yuan.

Global Wafer Foundry Industry Market Overview

The global wafer foundry market has been showing a rapid growth trend and is expected to maintain the current rate in the future. On the supply side, there has been an increase in wafer foundry manufacturers and their production lines. Looking at the demand side, firstly, Apple, NVIDIA,AMDwaitFabless InteractiveChip design manufacturers do not possess the capability to manufacture chips, and the chips they develop are all manufactured by pure wafer foundries such as TSMC. At the same time, benefiting from the strong demand for products in the internet and mobile internet era, the entire industry has maintained rapid growth in the past, with global demand for related chips increasing day by day.

Global Wafer Foundry Industry Market Size and Forecast

2015Year to2024Year (estimated)

Source: Frost & Sullivan report

Overview of the Wafer Foundry Industry Market in Mainland China

Limited by the shortage of high-end talents and cutting-edge technologies,2015In China, the market scale of wafer foundry services on the Chinese mainland was only48billion dollars. WithICWith the rapid growth of the design industry and the increase in domestic capital investment in chip technology, wafer foundry has gradually become a necessity.2019In China, the market scale on the Chinese mainland reached113.6billions. In the future, the demand for China's wafer foundry industry will grow rapidly, and it is estimated that the market scale of China's wafer foundry industry will2020year148.9USD billion growth to2024year363.6billion dollars.

Market Scale and Forecast of China's Wafer Foundry Industry

2015Year to2024Year (estimated)

Integrated Circuit Industry Market Overview

Integrated CircuitIntegrated circuit chipabbreviationIC), also known as microcircuits, microchips, or chips, are a type of miniature electronic device or component. According to sales figures, the global integrated circuit market size has been2015reach2019Compound annual growth rate5%at a speed, from2015year2,744.8USD billion growth to2018year3,932.9billions of US dollars, but mainly affected by Sino-US trade issues and the weakness of downstream consumer electronics markets,2019The global integrated circuit market size slightly declined to3,333.5billion US dollars. In the future,5GDriven by commercial, electric vehicle, Internet of Things, etc., the global integrated circuit market size is expected to grow at a faster rate from2020year3,612.3USD billion growth for2024year4,999.7billion dollars.

Global Integrated Circuit Market Size and Forecast

2015Year-end2024Year (estimated)

Source: Frost & Sullivan report

Integrated Circuit Industry Market Overview

Integrated CircuitIntegrated circuit chipabbreviationIC), also known as microcircuits, microchips, or chips, are a type of miniature electronic device or component. According to sales figures, the global integrated circuit market size has been2015reach2019Compound annual growth rate5%at a speed, from2015year2,744.8USD billion growth to2018year3,932.9billions of US dollars, but mainly affected by Sino-US trade issues, coupled with the weakness in the downstream consumer electronics market,2019The global integrated circuit market size slightly declined to3,333.5billion US dollars. In the future,5GDriven by commercial, electric vehicle, Internet of Things, etc., the global integrated circuit market size is expected to grow at a faster rate from2020year3,612.3USD billion growth for2024year4,999.7billion dollars.

Global Integrated Circuit Market Size and Forecast

2015Year-end2024Year (estimated)

Source: Frost & Sullivan report

Market Overview of Wafer Foundry Industry

WaferwaferSilicon wafers refer to the silicon chips used in manufacturing silicon semiconductor circuits, which are the foundation for producing various types of chips. The larger the wafer area, the more chips can be produced from a single wafer, hence the chip industry4inch,5inch,6inch,8Inches have been developed to12Inch wafer factories. The manufacturing of integrated circuits is an extremely important part of semiconductor manufacturing, due to its highest investment and technological content, which has created a very high industry technical barrier. To manufacture wafers, first, quartz sand must be purified to obtain high-purity crystalline silicon. The high-purity polysilicon is dissolved and then drawn into cylindrical silicon ingots. These silicon ingots are ground, sliced, and polished to form silicon wafers, commonly referred to as wafers or silicon chips. Silicon wafers are the raw material for integrated circuit manufacturing and are made according to different resistance value parameter requirements.

Integrated circuit manufacturing is the process ofICThe design factory precisely designs circuits, which are then formed into components and interconnections on wafers through different process flows such as photolithography, etching, ion doping, material stacking, and planarization. The final output is an integrated circuit capable of performing the circuit functions.

Typically, a single wafer can be diced into thousands of chipsdie), the higher the good rate, the moredieThe more. A single crystal grain, after testing and packaging, becomes a chip capable of specific functions (chip).

Chip manufacturing flowchart

Source: Frost & Sullivan report

Drivers and Trends of Wafer Foundry Market

Internet of Things,5GNew industries such as big data bring incremental space: In recent years, artificial intelligenceAI) has set off a new wave of intelligence driven by core technologies. At the same time,NB-IoT(Narrowband IoT),5GNetwork deployment has made the interconnection of everything a reality, driving the transformation of information technology into the Internet of Things. The development of the Internet of Things and big data has promoted the optimization and upgrading of high-performance chips for information processing and computing.5GThe commercialization and COVID-19 pandemic have accelerated the process of social digital transformation, thereby driving continuous growth in market demand for chip products.

Terminal demand such as automotive electronics and consumer electronics has surged: According to the prediction of the China Association of Automobile Manufacturers, the average number of chips installed in domestic traditional vehicles will decline from2017year580increased by2022year934piece, growth61%; The usage of domestic new energy vehicle chips has decreased from2017year813grows to2022year1,459piece, growth79%The amount of chips used in traditional foreign automobiles2017year791grows to2022year1,119piece, growth41%; The usage of new energy vehicle chips abroad has decreased from2017year850grows to2022year1,510piece, growth78%Therefore, the growth of the wafer foundry industry is expected to benefit from the booming automotive industry. As smartphone operating speeds continue to improve and user experiences are enhanced, their user penetration rate has also increased.2019The proportion of global smartphone shipments has reached79.7%, is expected to arrive2024In [year], the market share of smartphone shipments will be as high as89.5%Benefiting from automotive electronics and consumer electronics, the application scope of semiconductor chips has expanded rapidly, bringing new incremental space to the wafer foundry industry.

Analysis of the Market Competition Pattern in Wafer Foundry

In recent years, the country has attached importance to the development of the wafer manufacturing industry, introducing a series of policy supports to attract investment from all parties. Many new enterprises have been established, along with new production lines. Currently, the wafer foundry industry in Mainland China is in a period of rapid development, with a large number of manufacturers entering the industry. SMIC International, Hua Hong Semiconductor, Jinghe Integration, Shanghai Advanced Technology and Shaoxing SMIC are among the top five mainland Chinese wafer foundry companies by revenue.

*The ranking does not include foreign and Chinese Taiwan-funded enterprises' wafer fabs and wholly foreign-owned holding companies in the Chinese mainland, andIDMVendors, including only the Chinese mainlandFoundry CompanyWafer foundry

Source: Frost & Sullivan report

Most of the production lines of foundry companies in Mainland China are8inch,6inch wafer production line, with12Currently, only a few mainland Chinese foundries capable of producing large quantities on 12-inch wafer foundry production lines include SMIC International, Huarong Group, Jinghe Integration, and Guangzhou Yuexin.

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