On November 15, the semiconductor plate changed, Ruineng Technology and Glinda both sealed the plate, and Xinpeng Weiwei, Luwei Optoelectronics and Chuangyao Technology all rose by more than 10%.

On the news side, Buffett's Berkshire spent $4.1 billion on 60.06 million shares of Taiwan Semiconductor Manufacturing Co Ltd in the third quarter. It is worth mentioning that this is the first time that Buffett has bought a pure semiconductor company.

Another Apple deal?

Berkshire Hathaway said in a filing on Nov. 14 that it owns about 60.1 million shares of ADS by Taiwan Semiconductor Manufacturing Co Ltd, the world's largest chipmaker, or more than $4.1 billion, in a rare foray into the technology industry, according to Wall Street.

Taiwan Semiconductor Manufacturing Co Ltd's third-quarter profit soared 80%, driven by demand from customers such as Apple Inc, while Berkshire Hathaway still holds a $126.5 billion stake in Apple Inc.

Tom Russo, a partner at Gardner,Russo&Quinn, which owns Berkshire shares, said he thought Berkshire's reason for increasing its stake in Taiwan Semiconductor Manufacturing Co Ltd was that "Berkshire believes that the world cannot do without products produced by Taiwan Semiconductor Manufacturing Co Ltd."

Only a few companies can accumulate capital to provide semiconductors, and semiconductors are becoming more and more important to people's lives.

Financial blog SeekingAlpha pointed out that Taiwan Semiconductor Manufacturing Co Ltd's investment growth, dividend payout, price-to-earnings ratio and other aspects may be enough to show that Taiwan Semiconductor Manufacturing Co Ltd is a classic "Buffett-style" and "anti-bubble" stock that is likely to achieve a "Buffett-style annual return" in the coming decades.

Us stock semiconductor index enters technical bull market

Data show that as of Nov. 14, the Philadelphia semiconductor index has jumped 30% from a low of 2089.82 on Oct. 13, entering a technical bull market.

The more representative semiconductor companies in US stocks, such as NVIDIA Corp, ASML Holding NV, Taiwan Semiconductor Manufacturing Co Ltd, and so on, have also hit bottom and soared.

CITIC pointed out that the current round of U. S. stock semiconductor cycle inventory basically capped, stock prices are also expected to pick up from the bottom. Combined with the latest statements of Taiwan Semiconductor Manufacturing Co Ltd, Qualcomm Inc, MediaTek, Intel Corp and other enterprises, the third quarter is likely to be the inventory peak of this round of semiconductor cycle, and the plate is expected to return to normal inventory levels around the second quarter of 2023 after inventory removal in the fourth quarter of 2022 and the first quarter of 2023.

Global wafer factories expand counter-cyclically, while domestic leaders increase capital expenditure

According to statistics, 41 fabs will be built around the world from 2022 to 2025. Semiconductor Manufacturing International Corporation is building 12-inch wafer plants in Beijing, Shanghai, Shenzhen and Tianjin respectively; recently, China Resources Microelectronics began to build a 12-inch wafer factory in Shenzhen, with a total investment of 22 billion yuan for the production of mature process analog chips and power devices above 40nm. In addition, a number of IDM and contract factory construction projects are under way.

According to Soochow Securities statistics, only Huahong Group, Semiconductor Manufacturing International Corporation, Changjiang Storage, and Hefei Changxin wafer factories will expand their production capacity in the future by 1 million pieces per month.

In addition, Semiconductor Manufacturing International Corporation previously sharply raised his annual capital expenditure plan from 32.05 billion yuan to 45.6 billion yuan, mainly to pay the advance payment for long-term equipment orders issued in advance.

CITIC believes that Semiconductor Manufacturing International Corporation announced plans to increase capital expenditure for the whole year, while expanding production capacity of 340000 pieces in the next 5-7 years. Under the current external situation, it is expected to accelerate the localization of equipment. If the localization rate of new production capacity is increased from 10% 15% to 40% 50%, there is 3-4 times room for improvement, and 6-7 times for all domestic production.

It points out that the semiconductor heavy asset-end industrial chain will gradually deduce the localization from manufacturing-> equipment-> parts, and the trend of industrial independence in the future is clear, and it is difficult to replace the industrial importance of domestic leading enterprises with advanced technology.