The semiconductor industry is once again facing unreasonable pressure from the usa, and domestic production is expected to accelerate further.

Today, the A-share advanced packaging and lithography sector is showing strong performance.

As of the time of publication, Qingdao Guolin Technology Group, Wenyi Trinity Technology, Guangdong Guanghua Sci-Tech, Yichang Electronics have hit the limit up, InnoLasers surged over 6%, Shanghai Highly rose by nearly 5%, Unittec Co., Ltd. surged over 4%, Kunshan Kinglai Hygienic Materials surged over 3%, Habo Investment-U surged nearly 5% at one point.

Hong Kong semiconductor concept stocks surged at the beginning of the trading session, currently experiencing a slight decline, Hua Hong Semi surged nearly 3% at one point, Semiconductor Manufacturing International Corporation surged around 1% at one point.

What are the changes in the new measures?

Last night, the USA announced the latest semiconductor export control measures, with the restricted list containing 140 Chinese companies.

The list includes semiconductor equipment manufacturers such as naura technology group, tuorui technology, shengmei shanghai, pnc process systems, semitop, xinkailai, kaishitong, beijing huafeng test & control technology, insigma technology, huahaiqingke, kingsemi co., ltd., beijing yitang, east crystal source, shanghai ruili, and other semiconductor equipment manufacturers and some subsidiaries;

Semiconductor manufacturers such as qingdao xinen, shengweixu, pengxinxu, wuhan xinxin, etc.; EDA manufacturer huada jiutian and its subsidiaries; Semiconductor material manufacturers jiangsu nata opto-electronic material and its subsidiaries, shanghai xinsheng (under national silicon industry group), zhuhai cornerstone, and ultrapure precision gases; semiconductor overseas acquisition-related jianguang assets, zhilu capital, wingtech technology, etc.

Compared to the past, which mainly targeted leading semiconductor design and equipment companies, this list has a greater depth and breadth of coverage on the domestic industry chain, including thin film deposition, ion implantation, photoresist development, CMP, and EDA, with major domestic enterprises included.

In addition to export restrictions on key companies, the new BIS regulations show that the USA will control 24 types of semiconductor manufacturing equipment and three software tools that can be used for chip development or production.

At the same time, there are more restrictions on the storage unit HBM, which is critical for AI chips.

The new regulations show that whether the HBM storage is produced in the United States or elsewhere, as long as the proportion of U.S. technology used in the production process meets the EAR requirements, these products will require authorization from the U.S. government for export.

Various responses

In response, a spokesperson for the Chinese Ministry of Commerce stated that China has noticed that on December 2, the U.S. announced export control measures on semiconductors to China. This measure further tightens export controls on semiconductor manufacturing equipment, storage chips, and other items to China, adding 136 Chinese entities to the export control entity list, and expanding extraterritorial jurisdiction, interfering with China's trade with third countries, which is a typical act of economic coercion and non-market behavior. The U.S. is using double standards, constantly broadening the concept of national security, abusing export control measures, and implementing unilateral bullying practices. China firmly opposes this.

The semiconductor industry is highly globalized, and the USA's abuse of control measures severely obstructs normal economic and trade exchanges between countries, seriously disrupting market rules and the international economic and trade order, and significantly threatening the stability of the global industry chain supply chain. The global semiconductor industry, including American companies, is being severely affected. The Chinese side will take necessary measures to firmly safeguard its legitimate rights and interests.

At the same time, some listed companies on the list have also responded to this.

Naura Technology Group stated that 90% of the company's revenue is in the domestic market, and the overseas market accounts for less than 10%, expecting a relatively small impact from this.

Advanced Micro-fabrication Equipment Inc. China mentioned that the company's key components are already fully self-produced, and the sales region is mainly focused on the domestic market. It is expected that this external control will not have a significant impact on the company.

HuaDaJiuTian announced that the company is actively responding to the risks that may arise from being listed in the "Entity List".

Acceleration of localization in the industrial chain.

In terms of impact, Ping An Securities analysis, this move by the usa will further divide the global semiconductor market and also drive the domestic ICT industry to accelerate its localization process.

In the long run, the demand for localization of core technologies such as semiconductors is highlighted, and domestic industry chain companies have a strong willingness to increase localization rates, providing more opportunities for domestic semiconductor companies. It is recommended to pay attention to the market potential brought by the import of localized equipment and materials.

In the equipment sector, it is recommended to focus on Naura Technology Group, Advanced Micro-Fabrication Equipment Inc. China, Teradyne, Inc., Advanced Semiconductor Manufacturing Corporation, wuhan jingce electronic group, kingsemi co., ltd., shanghai highly, hangzhou changchuan technology, beijing huafeng test & control technology, etc.;
In the components and materials sector, it is recommended to focus on Fuchuang Precision, sichuan injet electric, konfoong materials international, national silicon industry group, anji microelectronics technology, hubei dinglong, etc.;

Citic Securities believes that the content of this sanction does not differ much from the previous media reports. The market has already anticipated it. Due to the preparations made by relevant companies, long-term hoarding and switching away from usa supply chains have already been carried out in advance. The actual short-term impact is limited, does not constitute a significant impact on business continuity, but in the long run, one must abandon illusions, become self-reliant, and is expected to further accelerate the complete industrial chain localization process.

1) Further acceleration of domestic substitution in the semiconductor components industry. As sanctions move upstream, it is recommended to focus on opportunities for domestic substitution of components.
The trend of localization of equipment enterprises is clear, and the companies with advanced processes, platformization, and low domestication rates in specific sectors should be the focus of attention.
Advanced packaging plays an enhanced role in the field of AI chips, with continuous technological iteration space in the 2.5D/3D/HBM related directions. It is recommended to pay attention to domestic manufacturers focusing on advanced packaging.
Wafer fabs, as the core strategic assets of semiconductor advanced domestic substitution, have strengthened their position.