China chip 10 will become the global chip war star

In September，Huawei launched Mate 30 series phones in Munich, Germany, with the industry's first flagship 5G SoC chip -- kirin 990 5G. Lead qualcomm related fields nearly half a year.

Huawei executives told the globe and mail earlier: the outside world is most concerned about chips. I don't care about chips because our own chips are actually more advanced than America's. "We have no problem," he added, referring to the core of cutting-edge chips. "we can supply ourselves completely and maintain the high-end products."

As an important instrument of China, China's strong rise in chips is really exciting. After the global reshuffle, "China core" has become one of the industry's leading technology.

One, global chip reshuffle, "China core" won!

Back in the 2G and 3G era, there were more than a dozen suppliers of baseband chips for mobile phones in the chip field, but with each generation of technology upgrading, baseband chipmakers faced huge challenges in technology upgrading. Not every company is willing to spend more than 100 billion yuan on scientific research every year like huawei.

It's worth mentioning that a few hours after the qeelin 990 series was launched, qualcomm also announced the launch of the 5G capabilities of the snapdragon 7 series 5G mobile platform. In just three days, 5G integrated baseband chips from samsung, huawei and qualcomm came out one by one. Competition is still fierce.

On the whole, this cruel big shuffle, for the time being with the "Chinese core" victory draw a full stop.

Why, one might ask, is a chip worth grabbing at all costs?

According to the calculation of IMF, every dollar of semiconductor output can drive the output value of relevant electronic information industry to $10 and bring about a GDP of $100.

At a ratio of 1:100, this amplification effect even affects a country's national operation.

From 2013 to 2018, China's semiconductor integrated circuit market alone expanded from $82 billion to $155 billion, with a compound annual growth rate of about 13.58%.

The importance of chip to China is self-evident, as an economic engine, "China core" cannot be absent.

Because life is the fate of the country, the next few years we want to do more China, must pay attention to the "China core" listed companies. Just as the real estate era contributed to vanke's 1,000 times increase in market value, the technology era will also have the next "vanke".

Therefore, every generation of communication network technology upgrade has been accompanied by the chip industry shuffle, 5G is no exception.

With Intel's exit, there are only five companies left in the world that have developed 5G chips: qualcomm, huawei, samsung, mediatek and unigroup. China has 3 seats!

Second, the industry bonus + billion replacement, they will be a big winner!

"A lot of people tell you that the domestic chip industry has all sorts of problems, but I will tell you that domestic chips are undervalued." That's from a chip expert at smic.

Flush data shows that A shares in the first half of 2019 A total of 22 chip leading net profit growth more than 100%, directly doubled! In addition, 81 chip companies turned red.

When we track the performance of Chinese chip listed companies, we find that, like huawei, China core has developed much better than expected.

Compared with the artificial intelligence, unmanned driving and other industries are still at the edge of profit and loss, "China core" has started to profit quickly. And 2019 is another crucial year.

In March 2018, integrated circuits entered the first place in physical development. According to the national development plan for the integrated circuit industry, the self-sufficiency rate of domestic chips should reach 40% by 2020, and the space for domestic alternatives should be over 400 billion.

We believe that with the efforts of huawei, purple light, zte and other communication giants, the domestic chip leader will get a lot of orders, be "forced" to make money, become a big winner of the curve overtaking in China.

At present, the chip self-sufficiency rate in the domestic smartphone sector has reached 23.6%, while the whole domestic chip industry's self-sufficiency rate is around 18% in 2018. Compared to the original plan, there is twice the space to replace!

Recent moves by foreign investors are a case in point.

Since the beginning of this year, a large number of foreign investors have started to buy "China core" crazily, such as huiding technology. Since August, foreign investors have increased their holdings by nearly 3 million shares, nearly double the increase of one month ago. The stock price rose 185.1%!

The foreign capital that gives priority to with value investment all along, incredibly multiply and multiply ground to add "China core", is it not the biggest apportion to domestic chip?

Historical inflection point of the industry + domestic replacement, and superposition foreign crazy buying, "China core" leading companies are expected to break out the next round of market.

In the long run, domestic chips have become China's "core asset".

Finally, we sorted out the "China core" industrial chain and dug 10 chip leaders, most of whom were the leading leaders in the domestic chip industry. Benefiting from the domestic substitution dividend, our annual performance is expected to be red.

Among them, 2 companies are huawei suppliers. They have received a large number of orders this year and their performance is expected to explode. Optional observations are strongly recommended.