Zhitong Financial APP learned that Xiangcai Securities released a research report sayingIn the first half of 2022, the downstream demand of the semiconductor industry maintained structural growth, and the imbalance between supply and demand of new energy vehicles, industrial control, middle and high-end IOT, power management chips, MCU and other products continued, driving the performance of related enterprises in the semiconductor industry chain up.In the medium to long term, geopolitical conflicts may speed up the process of anti-globalization of the science and technology industry, and the process of localization substitution will speed up and benefit domestic semiconductor enterprises. On the demand side, downstream markets such as 5G mobile phones, folding mobile phones, new energy vehicles, Internet of things equipment and enterprise digital transformation are in the ascendant, bringing new increments, opportunities and competition to the semiconductor industry. Semiconductor manufacturing, design leading and automotive semiconductor leading enterprises will continue to benefit.It is suggested that we should continue to pay attention to the semiconductor industry and maintain the industry's overweight rating.
The demand of Q1 semiconductor downstream market will grow structurally in 2022, and the imbalance between supply and demand of wafer foundry business will continue.
Wafer foundry ASP continued to rise, driving the contract manufacturing leader Q1 performance uplink consumer electronics (mobile phones, PC) market demand performance weak, sales decline compared with the same period last year. The demand for new energy vehicles and servers continues to rise; the supply of foundry faucet capacity continues to be tight, and ASP continues to rise, driving foundry leader Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) / United Microelectronics Corp / Semiconductor Manufacturing International Corporation (00981) / Hua Hong Semiconductor (01347) Q1 revenue and profitability up. Semiconductor Manufacturing International Corporation's Q1 revenue increased by 61.56% over the same period last year, while Hua Hong Semiconductor's Q1 revenue increased by 95% over the same period last year.
Driven by the structural growth on the demand side of downstream new energy vehicles and servers, there is a differentiation in the revenue performance of the contract manufacturing leader.
The Q1 revenue growth rate of Taiwan Semiconductor Manufacturing Co Ltd / United Microelectronics Corp / Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor's automotive electronics / industry was higher than 70% year-on-year, which was higher than that of most of the company's business revenue performance; Taiwan Semiconductor Manufacturing Co Ltd / United Microelectronics Corp and Semiconductor Manufacturing International Corporation's automotive electronics / industrial revenue accounted for the upside. Q1 Taiwan Semiconductor Manufacturing Co Ltd HPC business revenue for the first time replaced the smartphone business as the company's largest source of revenue.
Structural growth in downstream demand may continue, and the performance of wafer foundry leader Q2 is expected to be optimistic.
The foundry leader expects the structural growth in downstream demand to continue. Revenue growth in the automotive business, industrial electronics and HPC will partially offset the decline in demand in traditional consumer electronics sectors such as smartphones and PC. Q2 revenue expectations and gross profit margin expectations are both steady year-on-year growth.
Risk Tips:Capacity expansion is not as expected; market demand is declining; technology research and development is not as expected; upstream cost growth is higher than expected; macro policy changes are not as expected; systemic risk.