Since the beginning of this year, the semiconductor industry has continued to show upward momentum. As one of the key cornerstones of the industrial chain with a high proportion, high investment, and high technical barriers, the recovery of the upstream 'semiconductor equipment' sector has been particularly evident. What is the driving force behind the growth of the semiconductor sector? Are companies in this sector also adapting to it?AIIs Inspur accelerating its development? For listed companies in the semiconductor equipment industry, what does the level of contract liabilities and inventory indicate? Does it also suggest a high subsequent prosperity of the company?
Frost & SullivanFrost & Sullivan,Zhang Shouyu, consulting manager of Frost & Sullivan's Greater China region, was interviewed by Securities Daily to discuss with us the main drivers of growth in the global semiconductor equipment market.
Securities Daily
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Q: For listed companies in the semiconductor equipment industry, what does the level of contract liabilities and inventory indicate? Does it also suggest a high level of future prosperity for the company?
For listed companies in the semiconductor equipment industry, the level of contract liabilities and inventories can reflect the company's operating conditions and industry prosperity. Contract liabilities typically represent orders that the company has received and advance payments from customers. If contract liabilities are high, it indicates that the company has a relatively clear source of income in the future, which is often considered a signal of higher industry prosperity. Inventory levels reflect the company's product production and sales cycle. If inventory levels are high, it may mean that the sales speed has slowed down, or the company anticipates an increase in future market demand and has increased production in advance.
Q: The semiconductor equipment industry saw both revenue and profit growth in the first half of the year. Recently,SEMIpoint out,2024The global semiconductor equipment market is expected to grow slightly compared to last year3%till1,095Billion US dollars. What is the driving force behind this sector's growth? Are companies in this sector also adapting?AIIs Inspur accelerating development?
The main drivers of growth in the global semiconductor equipment market come from several aspects:
1.Technological progress drives demand for semiconductors: With the continuous investment in emerging technologies such as artificial intelligence and high-performance computing, the demand for semiconductor devices continues to grow, driving the growth of the semiconductor equipment market. EspeciallyAIDriven by computing, manufacturers continue to make strong investments in equipment and relatedDRAMandHBMThe substantial investment has provided a significant driving force for market growth.
2.Downstream manufacturers have increased investment: The global demand for semiconductor products continues to rise, especially against the backdrop of increasing complexity in high-performance computing semiconductor devices. Major manufacturers have increased their investment in semiconductor equipment to enhance production capacity and technical levels.
3.Trends in supply chain security: In some countries and regions, such as the Chinese mainland, the limited overseas contract manufacturing of high-end chips and import controls on high-end semiconductor manufacturing equipment have promoted the development of domestic semiconductor equipment and the process of domestic substitution. This has also provided growth momentum for the semiconductor equipment market. .
As for whether semiconductor equipment companies are adaptingAIThe acceleration of Inspur's development is certain.AIThe development of technology is driving the demand for high-performance computing and storage devices, which areAIThe foundation for algorithm execution. WithAIWith the continuous advancement of technology, the demand for semiconductors capable of supporting complex computing tasksis increasing. In addition,AIThe application of technology is also improving the efficiency and yield of semiconductor manufacturing, driving the development of new semiconductor equipment and processes. Therefore, the semiconductor equipment industry is actively adapting.AIInspur, to supportAIThe development and application of technology .
*This interview has been published in Securities Daily The reporter is Li Yanan, and the original title is: 'The Semiconductor Equipment Sector Continues to Recover Listed companies seize opportunities to tap new performance drivers".
