These concept stocks benefited from the 160 billion strong price rise of the chip

 These concept stocks benefited from the 160 billion strong price rise of the chip

MCU is a micro control unit, also known as single chip microcomputer or single chip microcomputer. Products are widely used in mobile phones, PC peripherals, remote controls, automotive electronics, industrial stepper motor, robot arm control, etc. MCU mostly adopts arm architecture, and this architecture is seizing the market of X86 and other old architectures. It is reported that Apples newly released self-developed chip M1 adopts the internal processor and CPU micro architecture based on ARM Isa.

Thanks to a wide range of application scenarios and large installed demand, the future growth rate of MCU market scale is expected. From the perspective of automobile application scenario, MCU is one of the vehicle specification level chips, accounting for 30% of the value of on-board semiconductor devices. On average, more than 70 MCU chips are used in a traditional vehicle. With the improvement of automobile electrification and intelligence, each intelligent vehicle is expected to use more than 300 MCU chips.

According to icinsights data, the market size of MCU will increase by 9.3% to $20.4 billion in 2019, and the shipment of MCU will also increase from 30.6 billion in 2018 to 34.2 billion, with an increase rate of 11.7%. It is estimated that by 2022, the market size of MCU will reach 23.9 billion US dollars, and the shipment volume will reach 43.8 billion pieces. In other words, by 2022, the market size of MCU chip will be close to 160 billion RMB.

Supply exceeds demand, MCU chip meets the opportunity of localization

For the news of the price rise of MCU, the internal staff of Zhaoyi innovation, the first tier manufacturer of domestic MCU, said that the whole industry is in a situation of short supply and demand. Generally, there will be price adjustment when the supply and demand are unbalanced.

On the whole, the main reasons for the price increase of MCU are shortage and shortage of wafer foundry capacity. Affected by the epidemic situation, overseas large-scale wafer factories and packaging and testing plants have announced their production stops. St strike of Italian French semiconductor has caused serious shortage of semiconductors in the world. Among them, the shortage of large quantity and wide range of MCU is the first to bear the brunt, and the products of major international MCU chip factories are delayed. It is reported that the export price of foreign MCU has generally increased by 20% - 30%, and some even doubled.

In the first quarter of this year, the housing economy promoted the growth of demand for computers and tablet products. Since the second quarter, the scene tolerance of the automobile and home appliance market has continued to warm up, which has greatly stimulated the growth of demand for panel driven IC, power management IC, power components, PMIC, sensor IC and other products. In addition, chip suppliers have increased their safety stocks, making the capacity of the wafer factory continue to be full The price of OEM increased.

Under the background of shortage of MCU and insufficient capacity of OEM in chip factory, many terminal manufacturers begin to use domestic MCU to replace them. Domestic MCU manufacturers have ushered in development opportunities. In October, Zhaoyi innovation said that international large factories are out of stock, and more and more large domestic manufacturers are importing the companys MCU products. The companys MCU revenue in the first three quarters of this year has exceeded the annual performance of last year.

In addition, there is a huge space for domestic replacement of MCU in the future. Taking the vehicle size MCU as an example, in 2019, the market size of China will be 2.11 billion US dollars, and it is expected to reach 3.29 billion US dollars in 2025. At present, the localization rate of vehicle size MCU is less than 5%. Industry insiders believe that the market space of MCU is huge, and both domestic and foreign MCU manufacturers have their own strengths. Only seizing a part of foreign market share is enough to make domestic MCU enterprises develop well.

MCU concept stock coming out

Huatai Securities believes that with the gradual landing of the Internet of things and the development of automotive electronics, the demand for MCU microcontrollers is expected to grow for a long time, and considering the optimistic development of domestic aiot and the objective demand of domestic substitution, it is optimistic about the development prospect of domestic MCU.

According to securities times and data treasure, there are 16 listed companies related to MCU chips in a shares, with a total market value of 1.24 trillion yuan. Among them, BYD, Weil and Wentai technology are the top three. BYDs latest market value is 460.909 billion yuan. Since 2007, BYD semiconductor has entered the field of MCU. At present, BYD semiconductor has a series of products, such as industrial grade general-purpose MCU chip, industrial grade three in one MCU chip, vehicle specification level 8-bit MCU chip, vehicle specification level 32-bit MCU chip and battery management MCU chip. Among them, the number of 8-bit and 32-bit MCU at vehicle level has exceeded 5 million.

In addition, Zhaoyi innovation is a leading enterprise of 32bit MCU products in China. According to the annual report of the company in 2019, the annual production capacity of MCU is 109 million pieces, and the sales volume is 108.8 million pieces. By 2019, the total number of MCU products shipped by the company has exceeded 300 million, and the number of customers has exceeded 20000.

Judging from the market performance, the stock prices of these 16 stocks increased by 38.54% on average during the year, of which BYD increased 269.6%, greatly increasing the average value. In addition, the stock prices of Changdian technology, Zhongying electronics and national technology increased by more than 50% during the year. In recent years, national technology has invested a lot of research and development efforts in MCU products. In 2019, the company completed the technical research and development of general security MCU chip products planned for the year. A number of general security MCU products based on armcortex-m0 and M4 core entered the product test and verification stage. In December 2019, the company became the MCU R & D project of China Mobile Internet of things Co., Ltd The winning unit, the winning amount is 47.48 million yuan.

The performance of these listed companies with MCU layout in the first three quarters was better, and the net profit of 11 companies in the first three quarters increased year on year. Among them, the net profit of Wentai technology in the first three quarters reached 2.269 billion yuan, a year-on-year increase of 325.83%. The share price of Wentai technology has been reduced by 38.43% since the peak of the year. In the first three quarters, the net profit of Zhaoyi innovation was 673 million yuan, a year-on-year increase of 49.65%, and the stock price has been 32.04% lower than the peak of the year. (Guojie, databao)