Why the current emphasis on semiconductor component investment opportunities?

Time：2023-10-12　Reading：78

Zhitong finance learned that Minsheng Securities issued a research report
Since entering Q3, many aspects of semiconductor downstream demand have increased:

1、From August to September, Huawei successively released Mate 60/60Pro/60Pro+ series mobile phone products, with a high degree of localization of chips, driving domestic demand for semiconductor manufacturing;

2、Taiwan Economic Daily reported on September 29, in order to meet domestic demand, the mainland's wafer foundry leader SMIC added large urgent orders to the supply chain;

3、the local fabs leading Q2 ushered in a recovery in capacity utilization, Q3 outlook continued optimistic. Smic's capacity utilization rate in Q2 2023 reached 78%, with a quarter-on-quarter increase of 10pct, and shipments in Q3 will continue to grow quarter-on-quarter. Crystal integration Q2 ushered in a sharp recovery in DDIC demand, gross profit margin, net profit margin significantly recovered.

Parts, as the upstream of semiconductor manufacturing, are expected to usher in demand repair. In addition, the localization of parts is also accelerating, and the localization rate is expected to bring excess flexibility to the parts plate.