Semiconductor market becomes the core of the electronics industry

Due to the particularity of gallium arsenide and gallium nitride semiconductor materials, this device will be an important development direction for future integrated circuits. The country is vigorously supporting the rapid development of the industry and has recently attracted widespread market attention. Gallium arsenide and gallium nitride are mainly attached to MOCVD for epitaxial production, and the technology content is high. The domestic LED chip leader Sanan Optoelectronics [0.13% fund research report] has been arranging the industry as early as two or three years ago, and recently issued a plan for increasing revenue. , plans to raise funds of 1.6 billion yuan, a total investment of 3 billion yuan for communications microelectronic device projects, production of gallium arsenide high-speed semiconductor devices and gallium nitride high-power semiconductor devices. Domestic gallium arsenide/germanium nitride semiconductors are in strong demand in military and wireless communications, and the relevant targets are scarce. Therefore, we are optimistic about the future development of the industry and will continue to pay attention to related investment opportunities in this field.

GaAs Semiconductor: RF Communication Core, Billion Dollar Market

Gallium arsenide semiconductors have high operating frequencies, electron migration rates, resistance to natural radiation and low power consumption, and are widely used in microwave communications. On the one hand, with the entry of smart phones into the 4G era and the rise of the 5G and the Internet of Things, the demand for multi-mode and multi-frequency gallium arsenide microwave power devices will increase significantly compared with the 3G era. According to our estimation, in 2014, the global demand for mobile phone GaAs power components was close to 12 billion, and the demand for GaAs components in the domestic mobile phone market was over 3.5 billion. 4G and future 5G communications have become an important growth driver for GaAs microwave semiconductors. On the other hand, the development of GaAs semiconductors from the original foreign IDMs has evolved to the current OEM business model driven by wireless communications. Professional GaAs semiconductor wafer fabrication has emerged.

Gallium Nitride Semiconductor: The Future of Energy Conservation Industry

GaN semiconductors have gradually expanded from the military industry to the civilian market since 2013. The U.S., European, and Chinese governments have all introduced relevant policies to vigorously promote the GaN semiconductor industry. International semiconductor companies have also acquired and cooperated with GaN devices. Continuing to happen, GaN semiconductors have become a must-see. In the future, with the gradual expansion of GaN semiconductors in new energy, smart grid, 4C industry and internet of things, the global GaN semiconductor market will have a potential size of US$9.4 billion.

Domestic Opportunity: Sanan Optoelectronics Opens a Prelude to Domestic Alternatives to GaAs/GaN Semiconductors

Sanan Optoelectronics will invest in gallium arsenide/germanium nitride semiconductor manufacturing to fill gaps in China's manufacturing process. On the one hand, Sanan will formally enter into the field of gallium arsenide/germanium nitride semiconductors through military orders. At present, Sanan has signed 66 million yuan tapeout orders with Chengdu Yaguang, in view of the demand for domestic gallium arsenide/gallium nitride devices for military use. Huge, as long as the company's products are in volume production, orders will be guaranteed. On the other hand, domestic RDA, National Technology [1.09% Capital Research], Han Tianxia and other design companies will all be future potential customers of Sanan Optoelectronics, and overseas will also be a key area for development. With the launch of the Sanan communications electronic device project, it will achieve an annual production capacity of 360,000 (6-inch) chips, even more than the current global leader in the stability of gallium arsenide wafer foundry Taiwan, with the help of national power, Sanan Optoelectronics from the defense In the field of application, it will not only be "TSMC in the LED chip community", but also expected to become "TSM of the gallium arsenide/germanium nitride chip industry."