2020-07-16

Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.

By yqqlm yqqlm

getInterUrl?uicrIvZQ=0f989e7f15f2e0211b817e22ff4685a8 - Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.

getInterUrl?uicrIvZQ=17c130d3de341e567bb5dafe3e1f78a7 - Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.

With the company’s successful landing on the Science and Technology Board, SMIC became the first domestic semiconductor”A+H”.


Text丨Ma Mujie

Source丨Invest in China

After the green light all the way, the A-share market officially ushered in the domestic”giant core”-SMIC International.

July 16, 2020, SMIC Log in to the Science and Technology Innovation Board. The company’s issue price is 27.46 yuan/share, the initial issuance of 1.686 billion shares, after the green shoe mechanism is exercised, the company is expected to raise funds totaling more than 50 billion yuan, in one fell swoop to become the”golden king” of the science and technology board.

On the day of listing, SMIC opened soaring 246%For 95 yuan. As of press time, SMIC has a total market value of 688.367 billion yuan.

For SMIC’s IPO, The fiery market can be described as”explosion”. In the SMIC stock strategic placement list, not only the”National Team” National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. There are also 29 organizations such as Singapore Government Investment Co., Ltd. (GIC) participating in the strategic placement, with a total strategic placement amount of 24.261 billion yuan. Among them, the second phase of the National Big Fund received the most allocation, with a strategic placement contribution amount of 3.518 billion yuan.

At the same time, Qingdao Juyuan Xinxing Equity Investment Partnership (Limited Partnership) was allocated 2.224 billion yuan, and many semiconductor industry chain listed companies have subscribed to it Share.

As an aircraft carrier in the field of domestic chips, SMIC Founded in 2000, it is one of the world’s leading integrated circuit foundry enterprises, and is also the most advanced technology, largest scale, most complete supporting service, and multinational operating professional foundry enterprise in mainland China, providing 0.35 microns to 14 nanometers. Integrated circuit wafer foundry and supporting services of various technology nodes and different process platforms.

According to the 2018 global market sales ranking of pure wafer foundry industry announced by IC Insights, SMIC ranks fourth in the world and ranks first among mainland Chinese companies.

The prospectus also shows that in the field of logic technology, SMIC International is the first foundry company in mainland China to achieve mass production of 14-nanometer FinFETs, representing the most advanced level of independent research and development of integrated circuit manufacturing technology in mainland China.

SMIC as a domestic wafer foundry The leader, working closely with domestic equipment, materials, and design manufacturers in recent years. From 2020, SMIC is expected to accelerate growth and gradually reach World-class IC manufacturing level.” Founder Securities analysis said.

It is worth mentioning that as early as March 2004, Core International has been listed on the New York Stock Exchange and the Hong Kong Stock Exchange respectively. However, in May 2019, SMIC announced its voluntary delisting from the NYSE. Now, with the company’s successful landing on the science and technology board, SMIC has also become the first domestic semiconductor”A+H” stock.

20 years of long wind and waves, carrying the”Chinese core” in one fell swoop

SMIC‘s growth history is like a history of blood and tears.

In 1977, SMIC founderZhang Rujing entered the famous American semiconductor giant Texas Instruments as an engineer. During this period, he participated in a number of semiconductor factory construction projects in the United States, Japan, Singapore and other countries, and was known by the industry as a”factory builder.”

In 1997, Zhang Rujing worked for 20 years in Texas Instruments Applying for early retirement and returning home, he established the third local foundry in Taiwan, Shida Semiconductor. Soon after, Shida Semiconductor was acquired by TSMC.

It is reported that in this acquisition, Zhang Rujing proposed the condition that the third fab of Shida Semiconductor is to be established on the mainland, but TSMC has not fulfilled this promise.

With the enthusiasm and determination to build a factory in the mainland, Zhang Rujing left the World University Semiconductor, which he founded by himself, and left TSMC, then came to Shanghai and founded an integrated circuit chip foundry enterprise- Core International. It is reported that only 13 months later, SMIC‘s first 8-inch fab was officially completed and put into production in Shanghai.

At that time, SMIC created the world’s most Fast chip factory construction records, Zhang Rujing is also known as”the father of China’s semiconductor.”

At the beginning of its establishment, in order to attract capital more flexibly, SMIC International has introduced the blessings of many institutions, and the shareholding structure is highly fragmented. According to CVSource’s investment data, SMIC has been favored twice by capital during the six months of 2001. Among them, in February 2001, SMIC received DCM tens of millions of dollars in strategic financing; in September 2001, SMIC has also obtained Yongwei Investment, Handing Asia Pacific, Xiangfeng Investment China Fund, Deutsche Bank China, Shanghai Investment, Guolianchuang Capital injection by star institutions such as investment, deep venture capital, and Walden International.

Everything seems to be normal and smooth, but fate always makes a difference.

2004 is SMIC Hong Kong stocks and US stocks IPO Previously, the”Taiwan authorities” issued huge fines to Zhang Rujing for using Taiwan’s funds to build chip factories in the mainland, suppressing and obstructing successively. Not only that, SMIC also faces The TSMC’s lawsuits and grudges are complex and difficult to imagine.

Finally, in 2009, SMIC and TSMC entered into a settlement agreement, but SMIC At this time, the price is to pay TSMC US$200 million for the free grant of shares. The day after the settlement statement was announced, Zhang Rujing signed the resignation document.

However, SMIC has not waited The shadows came out, and SMIC experienced high-level conflicts and turbulence. It was not until the third generation CEO Qiu Ciyun took office in 2011 that SMIC moved from chaos to stability and gradually expanded into ZTE era.

In terms of shareholders, according to SMIC financial report, The company has no controlling shareholder and actual controller, and the shareholding ratio of any single shareholder of the company is less than 30%. As of December 31, 2019, the largest shareholder of SMIC was Datang Telecom, which held 17%of the shares. The second largest shareholder is Xinxin (Hong Kong) Investment Co., Ltd., which is controlled by the National Integrated Circuit Industry Investment Fund, which holds 15.76%of the shares.

getInterUrl?uicrIvZQ=e77f03b4e826e0022bfc5ae82af861ac - Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.


One year revenue 22 billion, annual R&D investment exceeds 4 billion annually

As we all know, wafers OEM is a highly technology- and capital-intensive industry. Not only the technical threshold is high, but the research and development of new technology platforms also requires a large amount of capital investment.

Wei Shaojun, director of the Department of Micro and Nanoelectronics at Tsinghua University, once said that the reason why China’s semiconductor industry is relatively backward is that the investment intensity and scale of investment in research and development are not enough. Only by increasing R&D investment and promoting the further improvement of technology and products will it be possible to break the current strange circle.

This means that, to a certain extent, the chip company’s R&D investment is directly proportional to its R&D technology level and degree.

According to SMIC prospectus, 2017- In 2019, SMIC total revenue is approximately 21.39 billion yuan, 23.02 billion yuan and 22.02 billion yuan respectively. Among them, integrated circuit wafer foundry is the main source of the company’s main business income, and the company’s other main business income is mainly supporting services such as photomask manufacturing, bump processing and testing.

From the perspective of R&D investment, during the same period, the company’s R&D investment was 3.576 billion yuan, 4.471 billion yuan and 4.744 billion yuan, respectively, accounting for the proportion of operating income. 16.72%, 19.42%and 21.55%, ranking first in the industry.

getInterUrl?uicrIvZQ=d7339c1e275a8d6573c29f7a34f40e96 - Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.


However, in terms of R&D investment, due to TSMC overall revenue is relatively high, SMIC R&D investment is still the same as TSMC Far apart. The prospectus shows that from 2017 to 2019, TSMC’s revenues were 222.8 billion yuan, 223.3 billion yuan, and 246.6 billion yuan respectively The R&D expenses were 18.4 billion yuan, 18.6 billion yuan and 21.1 billion yuan.

In other words, SMIC R&D investment Only one-quarter of TSMC.

In terms of customers, based on the trend of domestic substitution, the proportion of customers in mainland China is increasing. The prospectus mentioned that China is currently the world’s largest consumer region of integrated circuits, and market demand continues to increase. During the reporting period, the company’s main business income from Mainland China and Hong Kong was approximately 9.916 billion yuan, 13.318 billion yuan and 12.752 billion yuan, accounting for 47.26%, 59.09%and 59.39%, respectively, showing an upward trend.

The company’s main business revenue from the United States accounted for 40.01%, 31.61%and 26.36%respectively, showing a downward trend; The proportion of operating income was 12.73%, 9.30%and 14.25%respectively.

getInterUrl?uicrIvZQ=5aafc81a7462e2de2e4eebc26746b810 - Just now, SMIC landed on A shares:the opening skyrocketed by 246%, the market value was 700 billion, and the technology circle was boiling.

In addition, SMIC does not have large customer dependence. The prospectus shows that during the reporting period, the total sales of the company’s top five customers were 10.790 billion yuan, 10.407 billion yuan, and 9.514 billion yuan, respectively, accounting for 50.45%, 45.22%, and 43.21%of the total sales of the current period, accounting for year-on-year. reduce. Among them, in 2018, the top two customers accounted for 16.97%and 15.38%of sales respectively, and in 2019 the top two customers accounted for 18.48%and 12.44%of sales respectively.

Restart growth in 2020, domestic substitution enters explosive period

In fact, SMIC, while benefiting from the domestic substitution dividend, also catalyzed the domestic substitution process of domestic semiconductors.

For a long time in the past, my country’s core chips mainly relied on imports. ZTE After the Huawei incident, the development of the domestic chip industry has gradually become a top priority for Chinese manufacturing. According to”Made in China 2025″, the domestic chip self-sufficiency rate will reach 40%by 2020 and 70%by 2025.

“The huge gap also means huge domestic replacement space, coupled with the dividends of Chinese policies and China’s huge demand market, China will be in the next 5-10 years There will be more than three chip companies that rank in the top ten in the world,” said Ye Guantai, a partner at Qiming Ventures.

Thanks to the rapid release of domestic substitute dividends, SMIC International In 2020, we may usher in a new round of growth opportunities.

SMIC Co-CEO Zhao Haijun and Liang Mengsong The Ph.D. bluntly stated that in response to market and customer needs, a new round of capital expenditure plans will be launched and capacity expansion will gradually appear. In terms of business strategy, it will continue to develop mature processes and maintain the forefront of various subdivisions, especially the demand for camera chips and power management chips is still strong.

Founder Securities even judged that under the dual drive of domestic substitution + cycle recovery, domestic semiconductors will usher in a turning point in 2020.”SMIC Industry Chain” is in SMIC is expected to start accelerating growth when it plans to land on the science and technology board.

At the same time, the support of the National Fund has also given positive and positive signals. According to the data, before the IPO, the second phase of the National Grand Fund and the second phase of the Shanghai Integrated Circuit Fund were submitted to the SMIC subsidiary company, SMIC, which is SMIC South China injected 1.5 billion US dollars and 750 million US dollars. The market generally believes that the current domestic semiconductor industry is in a period of historical opportunity for wafer capacity expansion, and counter-cyclical investment provides strong growth resilience for local equipment demand.

SMIC became the sixth furniture in the world A wafer foundry company with 14nm mass production capacity means that the foundry pattern will be reshaped.SMIC advanced process The development potential and growth space of domestic semiconductors have been raised, and the supporting domestic equipment and material suppliers under synergy are also expected to progress together.” Guo Mao Securities analyst He Maofei pointed out that the analysis.

However, at the same time as the boom in domestic substitutions takes off, we must also be alert to the”wind trap”. Liang Feng, a partner of Shengyu Investment Management, once said bluntly,”China cannot achieve domestic substitution in every field, and the gap can catch up, but it will take a very long time.”