On Monday, January 18, A shares opened low and went high, fluctuated upwards, and closed higher throughout the day. Plate, liquor stocks "hug group" loose, chip stocks ushered in a long time no see the market, rose sharply in an all-round way.

Chip stocks have been missing for a long time.

A-share chip stocks broke out collectively on Monday, and the plate moved higher across the board.

In terms of individual stocks, Silipu rose 13%; Tonfu Weidian and Zhongjing Technology rose by the daily limit. Semiconductor Manufacturing International Corporation's concept stock rose sharply, Weier shares rose by the daily limit, and Xinjieneng, Shengbang shares and Lion rose slightly by more than 8 per cent.

Chip ETF also rose across the board, with the four major ETF rising across the board, with chip ETF up more than 6 per cent and semiconductor ETF up more than 4 per cent.

The overall rise in chip stocks also led to a rebound in the net value of the Nuoan growth mixed fund, which had fallen sharply before.

Nuoan net worth rebound also boarded Weibo Corp hot search.

Organization huddling chip stock?

There is market speculation that at the time of the adjustment of the major funds, chip stocks may replace liquor to become the new direction of the fund group.

In terms of data, the Dragon and Tiger list data show that in the past month, institutional buyers and sellers have been on the list for three times, with a net purchase of 77.8511 million yuan. The details show that on December 4 and December 23, 2020, the number of buyer agencies was 2, and the net purchase amount was 330 million yuan and 134 million yuan, respectively.

But some market analysts believe thatInstitutions do begin to pay more attention to semiconductors, but they are still at the stage of looking at individual stocks, not huddling together.

According to the Shanghai Stock Exchange News, institutional research records show that institutions have increased their research on semiconductor stocks in the past three months, and the frequency and number of surveys received by some stocks are very considerable.

Among them, Xinyuan shares received 15 surveys and 156 reception institutions; China Resources Weibo received 9 surveys and 376 reception institutions; Beijing Junzheng received 7 surveys and 86 reception institutions.

For institutions to increase research, some market analysts pointed out that the semiconductor boom gradually increased in 2020, and the profitability of some leading companies increased significantly; but in the case of the pharmaceutical market before and the liquor relay later, the valuation of the semiconductor sector did not "rise with the performance." At a time when the valuations of medicine and liquor (consumption) are high, semiconductors are in a "value depression".

Semiconductor manufacturers have raised prices due to shortage of supply.

In terms of performance, the global semiconductor supply shortage has led to an overall price increase in the industrial chain. Not only IC design increases prices, but also prices of upstream suppliers such as wafers and closed test plants also continue to rise, driving suppliers in the middle and lower reaches of the semiconductor industry chain to follow.

According to media reports, most of the top 10 fabs in the world have raised their contract prices in the first quarter of 2021. Although a few manufacturers have not specified the extent of the price increase, there are signs of price increase.

South Korean wafer contract manufacturer East Hi-Tech has previously informed customers that the contract price will be increased by at least 10% and up to 20% in 2021. Although some customers refuse to accept it, they can only compromise because of the current shortage of wafer foundry capacity. Eastern Hi-Tech has signed all production contracts in 2021 and has won a number of new customers. Samsung Electronics also reportedly plans to raise its offer for 8-inch products.

Taiwan Semiconductor Manufacturing Co Ltd, on the other hand, cancelled the 3% discount for every 12-inch (300mm) wafer for major customers for the first time in 10 years. The company said the decision was aimed at ensuring that the production capacity of 5-nanometer products would be increased by 20% by the first half of 2021, so higher fees were needed to increase production capacity.

With regard to the mainland wafer foundry, Semiconductor Manufacturing International Corporation has said that existing customer orders will be carried out according to signed contracts, new customers and new projects will be determined through negotiation between the two sides, and the company will also increase the average wafer price by optimizing the product portfolio.

In the field of chip closed testing, the closed test factory has raised the price of wire frame and wire packaging in October of the whole year, raising the price of both urgent and new orders by 10%. After November, the capacity of planting ball packaging is full, and the price of IC carrier board has increased due to shortage, so the price of new order has increased by about 20%, and the price of urgent order has increased by more than 2030%.

Market analysis believes that, taking into account the tension in the upstream and downstream supply chains, the price rise in the global semiconductor market in the first quarter of 2021 has been basically determined.