Semiconductor equipment is making huge profits, and the domestic production rate of dry glue removal, etching, polishing, and cleaning is increasing again

Release time:

2023-12-01 15:23

On the evening of July 5, the semiconductor equipment company - Micron Corporation released its 2022 interim performance forecast. The company expects operating income in the first half of 2022 to be approximately 1.97 billion yuan, a year-on-year increase of approximately 47.1%; the net profit attributable to the parent company is expected to be 420 million yuan. to 480 million yuan, a year-on-year increase of 5.89% to 21.02%; during the same period, the net profit after non-deductions was 410 million to 450 million yuan, a year-on-year increase of 565.42% to 630.34%.

 

Since China Micro is listed on the Science and Technology Innovation Board, the interim report announcement is a voluntary disclosure and is not mandatory. This is also the first time that Micron has disclosed an interim report forecast since its listing. The preview shows that the company's new orders from January to June 2022 will be approximately 3.06 billion yuan, a year-on-year increase of approximately 62%.

 

In the first half of 2022, the amount of new orders signed was 3.06 billion yuan. In the whole year of 2021, the amount of new orders signed was 4.13 billion yuan. In the whole year of 2020, the amount of new orders signed was 2.17 billion yuan.

 

The first half of 2022 accounted for approximately 74% of the new orders signed last year. Judging from the amount of new orders signed in the past three years, as semiconductor foundry manufacturing companies expand production, the prosperity of the equipment side continues to rise.

 

According to brokerage survey data, the domestic rate of dry degumming, etching, and cleaning equipment is relatively high in the first half of 2022. Sorted from high to low according to the number of winning bids for domestic equipment, the winning bids of domestic manufacturers of different process equipment are as follows:

 

Etching equipment (44 units), deposition equipment (29 units), furnace tube equipment (26 units), dry glue removal equipment (25 units), front-end inspection equipment (11 units), polishing equipment (9 units), cleaning equipment (19 units), ion implanters (7 units), back-end testing equipment (12 units), glue coating and development equipment (6 units), and photolithography machines (1 unit).

 

Among them, the links with a higher domestic production rate are mainly dry degumming equipment (domestic rate 81%), etching equipment (54%), polishing equipment (43%), cleaning equipment (58%), and glue coating and development equipment (35.3%). ).

 

Judging from annual data, the domestically produced equipment rate reached 27.4% in 2021, a significant increase from 16.8% in 2020. Among the 548 pieces of equipment opened for bidding from January to June 2022, a total of 189 pieces of equipment were manufactured by manufacturers in mainland China, accounting for 34.5%.

 

Chart: From January to June 2022, the domestic production rate of dry degumming, etching, polishing and cleaning is relatively high

 

 

Today, the A-share index fell below the 3,400-point mark, and the stock prices of semiconductor equipment-related companies bucked the trend. The stock price of China Microelectronics Corporation rose by 13.79%, Tuojing Technology rose by 15.86%, and Shengmei Shanghai rose by 11.22%... Investors are optimistic about semiconductor equipment companies. Performance remains optimistic.

 

China Microwave Company: Net profit after non-profit increases 5-6 times year-on-year
 

Chart: Non-net profit deducted by China Microelectronics Corporation (past interim reports and 2022 interim report preview)

 

Chart: Net profit attributable to parent company of China Microelectronics Corporation (past interim reports and 2022 interim report preview)

 

It can be seen that China Micro's revenue and net profit have grown steadily, and its performance excluding non-net profit has been extremely good. In this regard, the company stated that the year-on-year increase in net profit after non-deductions was mainly due to the company overcoming the adverse effects of the epidemic in the first half of 2022. At the same time, benefiting from the development of the equipment market and the competitive advantages of the company's products, the company's operating income and gross profit in the first half of 2022 There was significant year-on-year growth.

 

At the same time, non-recurring income in the first half of the year decreased by approximately 330 million yuan compared with the same period last year. Changes in non-recurring gains and losses mainly include: government subsidy income decreased by approximately 210 million yuan compared with the same period last year; income from changes in fair value arising from equity investments decreased by approximately 200 million yuan compared with the same period last year, mainly due to the decrease in the shares of China Microelectronics held by China Micro. The stock prices of Core International and Tianyue Advanced fell in this period.

 

To sum up, in the first half of 2022, China Micro's non-recurring income will decrease, and its main business income and profits will increase. As a result, non-net profits will increase 5-6 times year-on-year.

 

In terms of business, China Micron mainly operates four businesses: etching equipment, MOCVD equipment, spare parts, and equipment maintenance. According to the revenue proportions in 2021, they are 64.48%, 16.18%, 17.89%, and 1.45% respectively. The etching equipment business The revenue share is high. Although the notice did not detail the operating conditions of each business, in the institutional survey in the first half of this year, China Microwave Company stated:

 

In terms of etching equipment, the 12-inch high-end etching equipment developed by the company has been used in advanced chip production lines from 65 nanometers to 5 nanometers by internationally renowned customers; at the same time, the company has developed less than 5 nanometer etching equipment based on the needs of advanced integrated circuit manufacturers. Erosion equipment is used for several key steps of processing and has received bulk orders from leading customers in the industry. The company is currently responding to customer needs to develop a new generation of etching equipment and etching processes including more advanced Damascus, which can cover more etching requirements below 5 nanometers and equipment for more different key applications.

 

In terms of MOCVD equipment, China Micro said it is currently widely used in the lighting and display markets. What's more important is the expansion of the Mini LED and Micro LED markets, and the development prospects of related markets are great. Important applications of MOCVD equipment also include power devices. Market agencies predict that by 2026, the global demand will exceed 800 MOCVD equipment per year. AMEC has developed related products in three of the fields. The company will continue to develop epitaxial equipment in the fields of lighting and display, including Mini LED, Micro LED, and power devices. The company expects to cover approximately 75% of the MOCVD equipment market.

 

The company is also actively deploying third-generation semiconductor equipment for power device applications, and has initiated the development of MOCVD equipment for manufacturing Micro LED, power devices, etc., which will further consolidate and enhance the company's leading market position in MOCVD products.

 

In addition, the R&D and production base of approximately 140,000 square meters in the High-tech Zone in Nanchang City, Jiangxi Province has been fully capped and is scheduled to be put into production in 2022. Nanchang Industrialization Base is mainly responsible for the large-scale mass production of relatively mature products and the research and development and upgrading of some products.

 

In July, the Science and Technology Innovation Board ushered in a wave of lifting restrictions
 

On July 22, 2019, the first batch of companies were listed on the Science and Technology Innovation Board, and China Microwave Company was among them. Three years since the launch of the Science and Technology Innovation Board, the number of listed companies in the semiconductor industry has exceeded 100. In addition to packaging and testing, the number of targets in other semiconductor subdivisions has doubled, which has greatly promoted the continued improvement of the semiconductor industry chain.

 

Chart: Number of listed companies in the semiconductor industry chain before and after the launch of the Science and Technology Innovation Board

 

 

 Now, as the three-year period expires, many companies listed on the Science and Technology Innovation Board have also ushered in a wave of "big non-compliance" lifting of bans. In July this year, 10.67 billion shares on the Science and Technology Innovation Board will be lifted, with a market value of about 266.5 billion yuan.

 

Chart: Number of shares lifted on the Science and Technology Innovation Board (shares)

 

 

Chart: The Science and Technology Innovation Board lifted the ban on the top 10 companies by market capitalization in July

 

In addition to the major lifting of the ban, it is important to note that this year’s revision of A-share financial report disclosure rules requires four points:

 

1. The main board of the Shanghai Stock Exchange has added requirements for interim report forecasts

2. The main board of Shenzhen Stock Exchange deletes the disclosure requirements for the first quarter report and the third quarter report preview.

3. The Shanghai and Shenzhen main boards have added annual report notices

4. The disclosure rules of the Science and Technology Innovation Board and GEM have not changed

 

 

In particular, there was no conditional mandatory disclosure of the mid-term report notice on the Shanghai Stock Exchange Main Board before. Mandatory disclosure conditions: negative net profit, net interest rate increasing/decreasing by more than 50% year-on-year, turning losses into profits, and adding "deductions not negative" or "main operating income < 100 million" in the annual report preview. The time node for the announcement of the Shanghai Stock Exchange's mid-term report is July 15.