Taiwanese media reported that 5G is the biggest focus of the global industry by 2020, with the mobile phone and semiconductor industries expected to benefit significantly, with the semiconductor industry being more fully driven, and Apple still expected to be the biggest winner in the flagship market for branded smartphones. Taiwan’s China Times reported on December 27th that 5G will be used on a global scale next year, and although smartphone sales growth will be difficult to show a “big explosion” due to the longer change cycle, the overall semiconductor industry will continue to grow strongly.
Reported that the report pointed out that with the 5G-driven specification upgrade, will drive the implied value increase and drive the global semiconductor industry in 2020 to 2022 the annual COMPOUND growth rate of 5% to 10%, compared with 2017 to 2019 single-digit growth significantly enlarged. The report predicts that Apple’s 5G iPhone will be shipped in 80 million units in the second half of 2020.
As far as 5G is concerned, the global telecommunications industry infrastructure will be extended for a long time, but the construction of base stations will be accelerated in the second half of next year after mass production of 5G smartphones, 5G popularity is likely to be much faster than 4G, mainly because 5G has more systems single chip, and mainland China smartphone manufacturers vigorously and actively launched, A 5G smartphone priced at Rmb3,000 has been shown.
Reported that the impact of 5G on the semiconductor industry will be comprehensive, 5G is expected to drive the semiconductor industry, the development of more active than in 2019.
Core Tip: Reported that 5G is the largest focus of the global industry in 2020, mobile phones, semiconductor industry is expected to benefit significantly, of which the semiconductor industry will be more comprehensive driving.
The amount of the extended reading jumped by 136%! The country’s “big money” investment in semiconductor materials
Media reported on December 24th that public investment in future industrial materials and nanotechnology will jump by 136 percent in 2020 as the government works to improve its global competitiveness in cutting-edge technology industries.
The total amount of the investment amounted to 233.6 billion won (1 yuan, or 165.6 won), up 136 percent from this year’s 98.8 billion won, Taiwan’s Economic Daily website reported on December 22, citing Yonhap. South Korea’s authorities said on December 22nd that the investment would focus on buying original technology, expanding research and development infrastructure and building a robust business ecosystem.
Reported that, according to reports, the relevant research and development funds for 128 billion won.
In research and development, a huge investment will be made in advanced nanotechnology and materials next year, ranging from microsensors and components to healthcare, energy and the environment;
Reported that the South Korean government has also invested heavily in supporting the expansion of the production of advanced semiconductor materials in South Korea, but also to invest in technology and products to market.
According to Taiwan’s “Union News” website reported on December 22nd, the global investment bank recently issued a research report that the South Korean semiconductor industry is expected to recover next year, driving the country’s stock market, the KoSPI, the koSPI index to 2,300 points. KOSPI averages 2100 points this year.
BNP Paribas recently raised its rating on South Korean stocks, saying the semiconductor market cycle has bottomed out and will begin to climb next year, a sign of a cyclical recovery.
The investment bank said in its report that the overstock ingress next year, data center and smartphone manufacturers will resume demand, KOSPI average water level of 2325 points.
A recent report by Credit Suisse also noted that South Korea’s semiconductor, automotive and petrochemical industries will make a 30% increase in profits next year, with the chip industry performing best. U.S. investment bank Damore also boosted south Korean stocks last month due to stable chip prices, normal inventories and increased demand for 5G services.
However, Citi is pessimistic about next year’s performance in South Korean stocks, the bank wrote in a November 29 research report: “Although the market is entering the new year, we would rather wait for the next decline before turning to bullish.” “
Key indicators suggest that the semiconductor industry is changing
Reference news network reported on December 22nd, Taiwan media said that the semiconductor industry three indicators showed signs of recovery, the technology industry demand rebound is expected to benefit South Korea,” such an export-oriented economy, which in turn led to the recovery of supply chains throughout Asia.
Taiwan’s Economic Daily reported on December 20th that semiconductor sales are a key indicator of the global technology industry, as semiconductors are needed, from smartphones to laptops, Televisions and cars. The need for momentum, if sustained recovery, will be particularly helpful to South Korea. South Korea’s economic growth this year produced its worst “report card” since the financial crisis.
The report cites an analysis by Bloomberg that show the three indicators of stronger demand in the global semiconductor industry: expanded capacity, chip prices and chip inventory.
Expansion of capacity is one of the most obvious leading indicators of chip output. According to the International Organization for Semiconductor Equipment and Materials (SEMI), the number of chip manufacturing deviceshipments reached its highest level since December. The latest data on semiconductor production equipment shipments in North America supports the view that semiconductor sales will continue to rise.
The price of chips has not gone up yet. But the price of memory chips surveyed by inSpectrum, a market research firm, shows that the price of memory chips has now stopped falling back to stability. Mike Howard, head of research at Yole Development, a French research firm, also said that after a severe oversupply in the market, “stocks are starting to fall.” “
South Korea supplies more than two-thirds of the world’s DRAM memory chips, and semiconductor inventories piled up in its domestic warehouses hit a peak in July. According to the South Korean government’s statistics bureau, South Korea’s chip inventory fell 16 percent in September from August, the biggest drop since June 2017, while global chip sales rose 3.4 percent over the same period, the biggest increase since August 2017.
“I think it’s bottoming out and now it’s starting to rebound again,” said Sean Roach, chief economist for Asia Pacific. “
The latest forecasts show important changes in the global semiconductor industry, china is a driving force
On December 12, the International Semiconductor Equipment and Materials Association (SEMI) issued a forecast on December 10 th that the global market size of semiconductor equipment will increase by 9.8% over the previous year to US$66.8 billion (US$1,07),” according to Japanese media reports. It set a previous record of $64.4 billion for 2018. The recovery of memory investment and investment in “logical semiconductors” are expected to drive the market. New demand in mainland China is also expected to increase.
On December 11th, the Japan Economic News website reported that it raised its September forecast for sales in 2019 and 2020. Sales in 2019 will fall 10.5 percent from a year earlier to $57.6 billion, four years later than the previous year, but will grow 5.5 percent from the previous year to $60.8 billion in 2020. It is reported that the current memory investment start-up slow, but for logic semiconductor equipment investment remains strong.
The report said the inventory adjustment for semiconductor memory is expected to continue into the first half of 2020. NAND-type memory for smartphones, data centers, etc., is expected to see an investment recovery in the first half of 2020. On the other hand, investment in DRAM will remain depressed into the second half of 2020. It is reported that the overall recovery of the memory market will not be until 2021.
China’s move to promote the localization of semiconductors has made progress, with equipment sales to exceed $16 billion by 2021. China is expected to become the world’s largest market, surpassing South Korea and Taiwan.
Japanese Media: Taiwan’s Semiconductor Talent Accelerates To China
On December 6th Japanese media reported that China was accelerating the introduction of talent from Taiwan, which has high-end semiconductor talent. Statistics show that up to now, the cumulative introduction of relevant talents from Taiwan more than 3000 people.
“It is only natural that you want to participate in big projects and increase your self-worth as a technician,” the Japan Economic News website reported on December 5. A man in his 50s said in Taipei, who was returning home to visit his family. He left a large Taiwanese semiconductor manufacturer, where he had worked for many years, in the fall of 2018 and moved to a mainland company. Locally, he says, wages have more than doubled and he can live with his family without any inconvenience.
Reported that in Taiwan, such technical staff is not in the minority. So far, more than 3,000 semiconductor technicians have traveled from Taiwan to work for mainland companies, according to business week, an economic magazine. About 40,000 technicians have been involved in semiconductor development in Taiwan, and the number of technicians flowing to the mainland has reached nearly 10% of the total. Some analysts believe that the current flow of talent to the mainland is accelerating.
Reported that the mainland’s policy of vigorously developing the semiconductor industry gradually clear, which on the island’s semiconductor talent flow to the mainland trend to promote.
According to the international semiconductor equipment and materials association (SEMI), China is also expected to surpass Taiwan by 2020 in the field of semiconductor manufacturing equipment, the report said.
Global Semiconductor Shipments Increase 12% in Third Quarter
According to the latest data from the International Semiconductor Equipment and Materials Organization (SEMI), global semiconductor equipment manufacturers shipped $149 billion in the third quarter of this year, up 12 percent from the previous quarter, but down 6 percent from the same period last year, Taiwan Media reported.
Taiwan’s semiconductor equipment shipments were $3.9 billion, up 21 percent in the quarter and 34 percent from the same period last year, Taiwan’s Economic Daily reported on December 4. China shipped $3.44 billion, up 2 percent from the quarter, North America was third with $2.49 billion, and South Korea shipped $2.2 billion, the fourth-largest, down 15 percent from the second quarter and 36 percent from the same period last year.
Cao Shilun, HEAD of global sales at SEMI, said global semiconductor equipment shipments had rebounded mainly due to strong demand in Taiwan and North America, with Taiwan also driven by advanced process investment, up 34 per cent from a year earlier.
Taiwan’s Economic Daily and Taiwan’s Central News Agency believe that the increase in investment in advanced processes has significantly driven the total volume of semiconductor shipments in Taiwan. Among them, TSMC increased the investment of 7nm and 5nm process technology, which is the key to Taiwan’s semiconductor equipment shipments in the first of the regions.
TSMC’s capital spending this year, which could reach $14 billion to $15 billion, is expected to hit a record high, and TSMC’s capital spending next year will remain at the same level as this year.
Data is compiled by SEMI and the Japan Semiconductor Equipment Industry Association, and more than 80 semiconductor equipment companies around the world provide regular monthly information.