Chip shortage tide “China chip” accelerates the rise of concept stocks every time a great opportunity

Recently, a news about “Volkswagen suspends production due to chip shortage” has caused a lot of uproar. There are reports that SAIC Volkswagen has stopped production from December 4th, and FAW Volkswagen has also entered a state of suspension, all due to insufficient supply of chips. Subsequently, Volkswagen Group (China) (hereinafter referred to as “Volkswagen China”) responded that although the supply of chips was affected, the situation was not very serious and a solution was currently being sought.

my country’s automotive chips are highly dependent on imports. This shortage of chips has hit the entire automotive industry, causing prices to rise in many links in the entire industry chain of chips that are rare and expensive, which is reflected in the A-share market. It is with the arrival of the news that several stocks in the chip sector have ended their callbacks and started to rise.

For example: Weir shares with the largest market value at present, NavInfo, which signed a cooperation agreement with Founder Motor to develop automotive Electronic chips, Allwinner, a veteran company that entered the automotive chip market as early as 2014, and Datang, which develops new energy battery monitoring chips Telecom, etc. have shown obvious financial involvement.

[Volkswagen’s discontinuation of production]

In fact, the source of this “lack of cores” comes from the warnings issued by the German car company Volkswagen Group, the parts giant Continental Group and the Bosch Group one after another: due to the global shortage of automotive chips, it may affect car production, and this impact will will continue until next year.

The shortage of automotive chips this time will lead to the inability to produce ESP (Electronic Stability Program System) and ECU (Electronic Control Unit), the two major modules of the on-board computer. FAW-Volkswagen and SAIC-Volkswagen basically have ESP and ECU products, so they are greatly affected.

Chip shortage tide “China chip” accelerates the rise of concept stocks every time a great opportunity

“The entire auto industry has been affected, at least Geely, Dongfeng Honda, and GAC Honda, all of which we have received notices of the impact of production suspension.” A staff member of a multinational auto parts company in China said externally.

Although many car companies say that the current car delivery and sales have not been affected, “lack of cores” is a common problem faced by the entire industry. Starting from December, the shortage of automotive chips will become more prominent, which will have varying degrees of impact on all car companies one after another, which is bound to bring enormous pressure to the entire automotive industry.

The capital market responded long before the decline in auto sales. On Monday, December 7, A shares and Hong Kong auto stocks fell on a large scale. GAC Group once fell by more than 5%, Dongfeng Motor fell by nearly 4.5%, and Great Wall Motor fell by 2%.

【Current Situation and Reasons of “Lack of Core”】

Of course, not all car companies are at a loss in the face of the crisis. BYD responded to the “lack of cores”, saying that the company has a complete industrial chain in new energy batteries, chips, etc., which can not only be fully self-sufficient, but also have a margin for external supply.

When facing the dilemma of “lack of cores”, Cui Dongshu, secretary-general of the Passenger Federation, said that chips, as a common accessory for vehicles, will not have much impact on subsequent supply. However, since this year, many car manufacturers have launched new smart car products. Compared with traditional cars, the demand for high-performance chips in smart cars has increased significantly, which will further exacerbate the gap between the supply and demand of chips. Therefore, the attitudes of leading companies such as Weilai Automobile, Xiaopeng Automobile, and Ideal Automobile cannot be ignored.

In this regard, Weilai Automobile said that the company has prepared in advance and has no impact; Xiaopeng also said that it has conducted internal verification and confirmed that it has no impact on the normal production and operation of Xiaopeng Motors; Li Auto also made it clear that production and operation are all normal.

Industry insiders believe that, at present, the monthly delivery base of the new car-making forces is still small, and the resource occupancy of components including chips is correspondingly small, so the degree of impact is small.

Regarding the outbreak of this “chip shortage” crisis, the latest report released by Huaxi Securities believes that the production pressure of OEMs caused by the current lack of chip production capacity is mainly caused by three levels:

First of all, at the beginning of the year, the lack of estimation of the market prosperity for the whole year by car companies was the direct cause of the insufficient upstream chip production capacity. In particular, the shortage of upstream main control chips has led to insufficient supply of ECM controller components.

Secondly, on the supply side, the shortage of 8-inch wafers has led to limited chip production capacity. The development of electrification, intelligence, and networking has led to a rapid increase in the demand for main control chips and power semiconductors for the entire vehicle. With the popularization of 5G applications, there has also been a large demand for related chips, squeezing the production capacity of automotive-grade chips. space.

Finally, the global power semiconductor supply chain is almost entirely in the hands of foreign manufacturers such as Infineon, ON Semiconductor, and ST. Domestic enterprises lack the right to speak in the industrial chain. Therefore, domestic enterprises also need to gradually enter and master the key links of the chip wafer supply chain in order to increase the right to speak in the allocation of global chip production capacity.

[“China Core” accelerates research and development, and concept stocks rise accordingly]

According to public data, the global automotive chip market in 2019 is about 47.5 billion US dollars, but the chip industry of my country’s own brand car companies is less than 15 billion yuan, accounting for about 4.5% of the world’s total. more than 30%. This “lack of core” incident undoubtedly reminded the Chinese people that the quality of the chip after the automobile is intelligent determines the future of the country’s automobile industry chain.

Fortunately, in September this year, the “China Automotive Chip Industry Innovation Strategic Alliance” was established in China. The first batch of more than 120 members included vehicle companies, chip companies, automotive electronics and software suppliers, which marked the unity of China’s independent automotive chip field. The action organization has also given the “Chinese chip” the impetus to further accelerate the research and development. It is the impetus of this “lack of cores” event that makes the chip industry in the capital market have “signs” of the rise, and many individual stocks have started a rising mode one after another.

Among them, the largest market value is Weir shares: in 2019, the company acquired OmniVision and Spicco for 15.2 billion yuan, and entered the CMOS image sensor, ranking second in the world for automotive image sensors. The company also publicly issued convertible bonds in June to raise a total of no more than 3 billion yuan, mainly for the 12-inch wafer testing and repackaging of OmniVision’s main business, high-pixel image Display chips, to enhance its competitiveness in the automotive field. .

NavInfo: Recently, it also signed a strategic cooperation agreement with Founder Motor. The two parties will give full play to their professional advantages in the field of automotive power control and automotive electronic chip research and development, and conduct in-depth cooperation in the field of domestic automotive electronic chips to jointly promote the development of domestic automotive electronic technology. with product application.

Allwinner Technology: Entered the automotive chip market in 2014, launched the car networking central control chip T2, and achieved a high market share in the after-loading machine market; its SoC products that meet the vehicle-level certification have successfully entered the front-loading market. .

Datang Telecom: The battery monitoring chip developed by the company for use in new energy vehicle battery management systems is the industry’s first single-cell monitoring chip for lithium-ion batteries designed with integrated electrochemical impedance spectrum monitoring technology.

Star Semiconductor: As a leading domestic IGBT company, it is expected to fully enjoy the domestic alternative dividend.

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