The Trump administration in the United States is pressuring the Dutch government in various ways to prevent global lithography giant ASML (ASML Holding NV) from giving its state-of-the-art EUV lithography machines to Chinese companies, Reuters reported on Jan. 7, citing people familiar with the matter.

It was precisely due to pressure from the US government that finally forced the Dutch government not to renew ASML's export license, making it impossible for ASML to deliver EUV lithography machines to Chinese customers, Semiconductor Manufacturing International Corporation, which means that domestic wafer foundry factories on the mainland will stop at 7nm technology to catch up with international advanced process technology.

In addition to ASML Holding NV, Qualcomm Inc, Broadcom Ltd, Sai Linsi, skyworks these companies are also China can not make technological breakthroughs in a short period of time "neck" enterprises, this article will sort out for you one by one. In addition, in the 5G era, the requirements for integrated circuits are more components, higher performance and better compatibility. In the 4G era, they are the darlings of the times, and their investment value will be more prominent in the 5G era.

Brief introduction:

·ASML Holding NV:At present, the only lithography equipment manufacturer in the world that can process 7nm and 5nm chips, and its three major customers are Taiwan Semiconductor Manufacturing Co Ltd, Intel Corp and Samsung. The year 2020 will be the year of the outbreak of 5G mobile phones, and ASML Holding NV, with 100% market share, will continue to be the winner in the 5G era.

Qualcomm Inc:Qualcomm Inc, which has high barriers to patented technology, can charge royalties for every mobile phone in the world, even Huawei phones that use Kirin chips.

·Cyrus:In the field of wireless communication, FPGA has strong real-time and parallel processing ability, which enables it to process the signal in real time. In the future 5G consumer electronics, self-driving and other areas, Cyrus, which accounts for the global 40%FPGA market share, will perform even better.

·Broadcom Ltd:The company accounts for about 80% of the world's silicon chips in network infrastructure. In addition, Broadcom Ltd continues to acquire technology leading companies in the wired, wireless and storage fields, making his company's business in an unshakable leading position.

·Skyworks:As an important industrial chain of Apple Inc, skyworks covers all the products in the wireless communication market, and its products have a very high performance-to-price ratio, of which radio frequency chips account for 43% of the world's products.

·Yadno:As a leader in the signal processing industry, Yadno is not only an important supplier to Apple Inc, but also a major supplier of Huawei's important power management chips and electronic components. In the future, with the promotion of 5G and self-driving technology, Yadno's business in the consumer electronics and automotive markets will continue to grow.

1. ASML Holding NV:

Headquartered in the Netherlands, its main business is lithography, and it is an absolute leader in the field of EUV lithography. It is the only company in the world with a market share of 100%.Lithography machine is the most critical equipment in the semiconductor industry. It can be said that ASML Holding NV directly determines the trend of semiconductor technology in the global industry. This is why the US government has tried every means to block the sale of ASML Holding NV EUV lithography machines to Semiconductor Manufacturing International Corporation.。

In order to successfully buy ASML Holding NV's EUV lithography machine, the three semiconductor giants Samsung, Intel Corp and Taiwan Semiconductor Manufacturing Co Ltd have become its three major shareholders and customers. According to relevant information disclosure, the average price of ASML Holding NV EUV lithography machine in 2017 is about 100 million euros per unit. 22 sets of equipment were shipped in 2018 and about 30 in 2019. The shortage of supply makes ASML Holding NV's revenue and net profit continue to rise, and the financial data will perform better in the future.

Market position:

Manufacturing lithography machine is basically monopolized by ASML, Nikon and Canon. As long as we pay attention to the shipments of these three companies, we can calculate the global semiconductor production capacity with high probability. In the field of DUV and i-line technology, there are three lithography machine players, ASML Holding NV, Nikon and Canon, but EUV has only ASML (ASML Holding NV), which is the only semiconductor lithography equipment manufacturer in the world that can provide below 10nm. In 2020, Samsung, Taiwan Semiconductor Manufacturing Co Ltd and Intel Corp began mass production of 7nm chips, and ASML Holding NV is the only one that uses EUV lithography equipment.

In 2019, 7nm chips officially kicked off, such as Huawei's Kirin 990. From the stock price chart, we can see that ASML Holding NV's stock price doubled for the whole of 2019. The year 2020 is the first year of the outbreak of 5G mobile phones, and the demand for 7nm chips will become an order of magnitude growth.

two。 Qualcomm Inc (QCOM.O):

The global leader in 3G, 4G and 5G technology research and development has licensed the use of technology to a number of manufacturers around the world, covering all the world's telecommunications equipment and consumer electronic equipment brands.

Qualcomm Inc's main income comes from chip sales and patented technology licensing. About 2/3 of its annual revenue of $26 billion comes from the chip business, but 2/3 of its annual profit of $8 billion comes from patent licensing.This means that chip sales bring more business and orders for Qualcomm Inc, but more profits are made from the patent licensing business.

Qualcomm Inc is a company that started with technology research and development.Every mobile phone has Qualcomm Inc's invention.. According to Qualcomm Inc's patent licensing model, no matter whether Qualcomm Inc Snapdragon chip is used or not, technology transfer fees need to be paid to it. In other words, Huawei currently uses a lot of its own Kirin chips, but the royalties that should be paid to Qualcomm Inc should not be reduced.At present, Qualcomm Inc has no competitors.Even if Qualcomm Inc's chip sales decline, but 4G, 5G patented technology will be used in our electronic equipment will not be less.

3. XLNX.O: the provider of nearly half of the world's FPGA

Cyrus supplies FPGA chips and video encoders to Huawei and is also the largest FPGA manufacturer in the world. "FPGA" means "field programmable gate array"It's called the "universal chip.". Application scenarios are mainly used in audio / vision-related products, but also widely used in computer electronics, mobile phone base stations and communication infrastructure-related equipment. It can be said that every electronic product we can think of has the shadow of FPGA.

FPGA is a substitute for ASIC. The comparison is as follows:

1) time advantage

2) cost advantage

3) production advantage

4) easy to operate

Global competition:

More than 60 companies around the world have spent billions of dollars to try to reach the top of the FPGA, but in the end there are only four companies located in Silicon Valley in the United States: Cyrus, Altra, Ledith and MGM. In 2017, Cyrus's global market share was 41%, and the second place Altra was 30%, so the first two already accounted for 71% of the global market share.

(note: Altra Altera was announced by Intel in 2016 for $16.7 billion.)

Cyrus' revenue is growing, reaching US $30.59 in 2018 as of March 30, 2019, and its net profit is also increasing, with a net interest rate of close to 30%.

Over the past decade, Cyrus's share price has grown nearly 6-7 times, reaching nine times in 2019. The main reason is that it firmly controls the dominant position of the FPGA market by virtue of its main business. With the 5G drive, 5G will have higher requirements and wider application scenarios than the new radio application standards of 4G, especially in South Korea and China. So there will be more applications in wireless areas such as consumer electronics, autopilot, intelligent manufacturing and so on than in the past decade.

Note: in the field of wireless communication, FPGA makes real-time signal processing because of its strong real-time and parallel processing ability.

4. Broadcom Ltd (Broadcom Inc, AVGO):

Is one of the largest fabless semiconductor companies in the world, producing wired and wireless semiconductors, and is currently the world's largest manufacturer of WLAN chips.

Broadcom Ltd's operating income has gradually increased, and the product lines of cable infrastructure and enterprise storage have been expanded in recent years. In 2018, these four markets contributed 42%, 31%, 22% and 5% of the revenue, respectively.

Broadcom Ltd's main customers are Huawei, Cisco Systems, Juniper, Dell and other major customers, such as the following chart. Generally speaking, many of Huawei's businesses, such as data centers, communication facilities, mobile phones or tablets, are inseparable from Broadcom Ltd's product support.Broadcom Ltd's product line is very important to Huawei, and it is difficult to find a suitable replacement.。

Global competition:

Over the past 10 years, Broadcom Ltd's stock price has risen 23 times, much higher than the Nasdaq index. Broadcom Ltd continues to acquire technology leading companies in its cable, wireless and storage fields. make its company's business lines in an unshakable leading position.

5. Good News (Skyworks Solution Inc, SWKS):

Is a wireless communications company in the radio frequency analog and mixed signal semiconductor industryRF chip supplier of Apple Inc's productsThe company's products basically cover all products in the wireless communications market.The application fields include consumer electronic products, automotive, aerospace and national defense, high-end medical equipment and so on.

Market position:

Huawei has developed Barone 5G01 (millimeter wave below 6GHz) and Barone 765 (industry-leading network speed and signal strength performance), so Huawei is less dependent on Skyworks, but other consumer electronics products are still highly dependent on it.

* Note: 4-5 RF chips are usually installed in 4G mobile phones.

Scarlett is the third largest analog IC supplier in the world, accounting for 7% of the analog IC market share, after Texas Instruments Inc and Yadno. The core components of RF devices arePower amplifier chipAlso known as radio frequency chip Skyworks is the leader in the RF chip industry, accounting for 43%, with the top three accounting for 90%.

Share prices have been rising since 2008. As of January 6, 2020, the share price has risen 22.1 times. Especially in 2013-2016, the rise in share prices during this period was mainly due to the rise in corporate performance. Overall, the growth of Si Jiaxun's share price has followed the emergence of smartphones, especially when Apple Inc has become a smartphone giant. On the whole, the rise of Si Jiaxun's stock is quite consistent with the 3G and 4G cycles.

6. Analog Devices Inc, ADI:

Is a leading manufacturer of analog mixed signal and digital signal processing chips, Yadno specializes in industrial, automotive, consumer electronics, communications and other areas

注：

* an integrated circuit in which analog circuits consisting of capacitors, resistors, transistors, etc. are integrated to process analog signals.

* the main circuits of the quasi-integrated circuit are: amplifier, filter, feedback circuit, reference circuit, switched capacitor circuit, etc.

The company's products mainly include:

Although the company's revenue is affected by Sino-US trade in 2019, its overall gross profit margin is an upward trend, indicating that the structure of its products is constantly optimized.

Market position:

Yadno is the second largest analog IC supplier in the world, accounting for 8% of the analog IC market share, second only to Texas Instruments Inc. In the signal processing industry, Yadeno is one of the leaders with strong competitiveness. The competition in the signal processing industry embodies many aspects: product performance, technological innovation, brand, product diversity, technical support, product price and so on.

Apple Inc has been Yadno's biggest customer in the past three years. In addition, Huawei's power management chip andimportantAll the electronic devices come from Yadno.

Yadno's share price has increased more than seven times in the past 10 years, and it is expected that Yadno's business in the electronics and automotive markets will continue to grow in the future with the promotion of 5G mobile phones and self-driving technology.