In ancient times, if you want to eat fish, learn to catch fish first. ZTE was blocked by the US, and the chip was urgent for a time. As a result, the Chinese people shouted the Chinese core. On the A share market, the concept of self controlled chips has also become a hot topic. However, in the high mood, few people see that we are not only short of core, even the equipment for producing chips, which are also controlled by a small number of Companies in the US and Japan. The localization rate of semiconductor equipment is only 12% The chips domestic index (884160) rose 9.53% last week under the lead of independent chip control, the highest increase of 50% since the end of February this year. From the 47 branches of the index, it is mainly concentrated in all aspects of various chip manufacturing, and there are also several semiconductor manufacturing equipment companies in A shares, such as northern Huachang, crystal Sheng Electromechanical, Chang Chuan technology and so on. Pictures from: a perturbed net However, senior electronic researchers of a large brokerage have pointed out that the high-end chips needed by ZTE are banned by the United States, and investors can not ignore the risk of supply of high-end semiconductor production equipment. The global semiconductor core equipment suppliers are concentrated in the United States, Japan, and Holland. If the US side limits semiconductor equipment into China, a number of wafer mills currently being built at home may face the risk of less than the core equipment. According to the research report issued by China Gold Corporation, global semiconductor equipment sales increased by 36% in 2017 to a new high. Semi forecasts that global semiconductor equipment sales will grow by 9% and 5% respectively in 2018 and 2019, and China will be the main growth engine. In 2017, Chinas wafer fabrication plant began to be built on a large scale. According to the 1-2 year construction cycle, 2018 and 2019 will be the peak period for equipment entry. Semi predicts that in 2018 and 2019, Chinas equipment sales will increase by 57% and 60% to 75 billion yuan and 120 billion 100 million yuan respectively. However, at present, the localization rate of semiconductor equipment is only 12%, and the localization rate in the high-end equipment field is lower. Like chips, localization of semiconductor production equipment is also a medium and long-term trend. Huachang securities machinery team recently issued a point of view that the ZTE event suggests that the localization of semiconductor equipment is urgent, but to realize the autonomous control of the semiconductor industry, the overall localization of the equipment is the most important. At present, among the core devices of semiconductor, single crystal furnace, etching machine, film deposition equipment and post road detection equipment have been able to fully meet the production of 28nm process products, and become the basic machine platform for the new producers of the mainstream chips in China, and the 14nm equipment is also in the continuous verification, which is expected to enter the production line in the next two years. State Sheng securities recently pointed out that, affected by the ZTE incident, the semiconductor industry chain localization process is expected to accelerate, semiconductor equipment along the difficult path of the first gradual localization of the trend will not change. Capital is enthusiastic about the localization of semiconductor equipment At the end of March this year, the Ministry of Finance announced the relevant enterprise income tax policy on integrated circuit production enterprises, and the integrated circuit enterprises that meet the conditions can avoid 5 years of enterprise income tax at most. In view of this, Northeast Securities analysis shows that it is foreseeable that the announcement of tax cuts will drive a new round of investment in the field of integrated circuits. From the upper and lower reaches, considering that the policy is a long-term policy, it is expected that a long time will lead to production line investment, so the upstream semiconductor equipment manufacturers will continue to benefit from industry development for a long time. Visual China Daily economic news has learned from some seller analysts that the domestic substitution of semiconductor equipment is the trend of the times, so the current stage investors are more enthusiastic about understanding the status of the localization of semiconductor equipment. Some sellers research teams are also starting to provide related services. For example, recently, in the roadshow related to the independent controllable theme of the information industry organized by the securities firms, in addition to the participation of three industry research teams, such as electronic, communication and computer, which are closely related to independent control, many machinery industry teams of the securities companies will also participate, and the mechanical team is often the standard semiconductor equipment industry. In addition, there are roadshow activities specializing in semiconductor devices. It is reported that a large broker will hold a conference on semiconductor equipment experts in April 24th with the theme of the domestic status and space of semiconductor equipment in various links, such as the path and opportunity of the domestic chip, the long crystal, test and other links, and the comparison of the major manufacturers. And last Friday, the electronic research team of a large brokerage company held the semiconductor theme salon. During the period, the industry focused mainly on semiconductor process and semiconductor production equipment. However, its team members told reporters that the main purpose of holding such salons is knowledge exchange. The reporter noticed that some research teams have started to investigate companies related to A - share semiconductor devices, for example, some teams have recently made an appointment for a semiconductor testing equipment company. The localization of semiconductor equipment is not achieved overnight Since February this year, the A share semiconductor equipment plate has shown great performance. The industrys leading North Huachang and related companies have doubled from the bottom to the recent highest point, and the increase in the same period is far beyond the microchip localization index (884160), showing the markets identification of the semiconductor equipment localization logic. But today (April 23rd), the North China Huachang, Jing Sheng Electromechanical, Chang Chuan technology and other semiconductor equipment stocks have been substantially adjusted. In view of the recent research teams views on the localization of semiconductor equipment, most of them believe that, in the current background, domestic semiconductor equipment manufacturers have a good opportunity to grow, and are expected to achieve a domestic substitute breakthrough in a number of equipment subdivision industries. It is understood that in some high-end semiconductor equipment, foreign manufacturers are in the stage of oligopoly. For example, Holland ASML occupies more than 80% of the global semiconductor photolithography equipment market, and its TWINSCAN series is the highest precision, most productive and widely used high-end lithography in the world, which is adopted by the worlds major semiconductor manufacturers. In this regard, Anxin Securities pointed out that at present, the high-end market of semiconductor equipment is almost completely monopolized by foreign enterprises. Due to the barrier of technology and funds, the domestic production rate of semiconductor equipment is low and the production capacity can not meet its own needs, and the equipment produced by domestic enterprises is mainly in the middle and low ends. Compared with other parts of the semiconductor industry chain, the Haitong Securities Electronic team said that the semiconductor equipment and material links in our country were very weak in the long period of time. In the case of semiconductor equipment, Chinese manufacturers accounted for only 7% of the world in quantity in 2016, and the amount of supply was very small. In recent years, a member of an electronic team that has gained a good reputation for new wealth confessed to the daily economic news (nbdnews) that the nationalization of the key production equipment for semiconductors is a difficult process, which requires the support of the country or the accumulation of a large number of early prophase, so it is doomed to not be accomplished overnight. Source: Daily Economic News Editor: Xun Jianguo _NN7379 In this regard, Anxin Securities pointed out that at present, the high-end market of semiconductor equipment is almost completely monopolized by foreign enterprises. Due to the barrier of technology and funds, the domestic production rate of semiconductor equipment is low and the production capacity can not meet its own needs, and the equipment produced by domestic enterprises is mainly in the middle and low ends. In recent years, a member of an electronic team that has gained a good reputation for new wealth confessed to the daily economic news (nbdnews) that the nationalization of the key production equipment for semiconductors is a difficult process, which requires the support of the country or the accumulation of a large number of early prophase, so it is doomed to not be accomplished overnight.