Interpretation of semiconductor equipment and materials group presentation

Actively respond to market changes
In the face of possible trade restrictions imposed by the West, China is accelerating the localization process of its chip industry to reduce its dependence on external supply chains. Data from the International Semiconductor Industry Association (SEMI) show that in the first half of 2024, the Chinese mainland invested as much as $25 billion in semiconductor manufacturing equipment, equivalent to about 177.94 billion yuan, which is more than the United States and South Korea combined.
At the Group Performance presentation held on September 12, 2024, a number of companies shared their performance highlights and industry outlook. There are several obvious signs:

The localization process is accelerating: Several companies said that the localization process of semiconductor equipment and materials is accelerating. For example, Crystal Integration said that the localization rate of its key raw and auxiliary materials and equipment has reached 90%.

Orders and revenue growth: Several companies reported increases in orders and revenue. Companies such as Huafeng Measurement and Control and core source Micro said that they have good orders in hand and are expected to continue to maintain a good development trend in the second half of the year.
Overseas market expansion: Some companies such as Huafeng Measurement and Control and Xinyuan Micro said they are actively expanding overseas markets and have received orders from several overseas customers.
Here is a summary of the company's main highlights:
Huafeng measurement and Control: Orders are good, overseas business is smooth
The company has good orders in hand and is expected to continue to maintain a good development trend in the second half of the year.
The US subsidiary and the Japanese subsidiary of Huafeng Measurement and Control have been put into operation in the first half of this year, and the equipment manufactured by the Malaysian subsidiary has been successfully shipped to overseas customers.
Core source micro: order delivery pick up, strengthen overseas expansion efforts
The company has been deeply engaged in the field of advanced packaging for many years, and some technologies have reached the international leading level.
In the first half of 2024, the company achieved revenue of 694 million yuan, the same as the same period last year, among which, the company's order delivery and acceptance in the second quarter picked up, and operating income increased by 10.31%.
Zong Runfu, chairman and president of Xinyuan Micro, said that the company's new signed orders of 1.219 billion yuan, an increase of about 30%, among which the new products applied in the field of Chiplet temporary bonding, unbonding and other new signed orders increased more than ten times year-on-year.
In the first half of this year, Core source Micro obtained batch repeatable orders from leading overseas packaging customers. At present, the company's overseas market orders are dominated by advanced packaging equipment, and it will continue to actively promote overseas market expansion efforts.
Crystal integration: to promote a new height of localization
The company continues to promote the localization of key raw and auxiliary materials and equipment, and has achieved 90% supply by domestic manufacturers in the field of raw materials.

Zhongju Core: Respond to the demand for price reduction, increase market share
In the context of the pressure on downstream customer performance in 2023, this year's customer demand for supplier price cuts is relatively strong, and overall, the price of products in the industry has dropped.
The company will seize domestic and foreign market opportunities, accelerate the product certification cycle, improve the market share of stable supply products, and promote the continuous growth of the company's business.
Shengong shares: Listed in the domestic market, the overseas market gradually recovered
The domestic market, driven by the independent improvement of the industrial chain, still maintains an upward momentum. At present, overseas market demand is in a process of gradual recovery, but has not yet recovered to the market boom of 2021 to 2022.
Pan Liansheng, chairman of Shengong Shares, pointed out that the upstream integrated circuit manufacturing and equipment, as well as the material field where Shengong Shares are located, because of the different downstream applications, the impact is structural and phased, and has not reached a generally higher degree of prosperity.
"On the one hand, after nearly two years of inventory digestion, the inventory situation of consumer electronics has improved. However, due to inflation and geopolitical factors, overall consumer confidence has not yet seen a strong recovery, and the recovery of key consumer electronics products has not yet reached the point where it can cause a significant upward trend." Pan Liansheng said that on the other hand, generative artificial intelligence represented by ChatGPT has a significant driving effect on downstream high-performance logic and memory chips. However, from the short-term data analysis, AI can not temporarily replace the overall pull role of consumer electronics products on the demand for integrated circuit products. At present, integrated circuit manufacturers and some Internet leading enterprises are still purchasing stronger computing power and storage capacity through a large amount of capital expenditure and research and development investment to support product and service innovation.
Jiuri New materials: Some photoresist products stable sales
The company has completed the research and development of more than 10 semiconductor G-wire and I-wire photoresist products and a number of conventional panel photoresist products, and has continued to test and verify in downstream customers, involving more than 20 related customers such as panels, discrete devices, power devices, sensors and packaging, and has passed the verification and achieved stable sales of 4 semiconductor photoresist products. Successfully entered the photoresist market.
Regarding the market situation, Jiuri new Materials said in its first half of the financial report, affected by the global, the actual domestic demand did not rebound sharply, still in the bottom area; Due to the impact of shipping, there is a demand for foreign goods in advance, which partly supported the sales in the first half of the year. Many factors make the product competition increasingly fierce, although the price of each product is at the bottom, there has been a stage rebound, but the overall recovery is still very uncertain.