Market introduction of quartz glass tube
As the prelude to the Sino-US trade war kicked off, ZTE was sanctioned by the U.S., Huawei announced its withdrawal from the U.S. market, and Qualcomm became the biggest beneficiary of the establishment of the 5G industry standard. The "big drama" was at the national government and at a time. The ordinary people all talk about the topic of "lack of core and less soul". The lack of core chip technology is tantamount to holding back the throat of the development of the manufacturing industry, and it is also a stumbling block for China to realize its strategy of becoming a strong country. Therefore, it is imminent to have an international-level "National Chip".
In order to change the monopoly of the United States, Japan and South Korea, the foundation must be firmly laid, that is, to start with the production technology of high-end silicon wafers. Currently, my country is building 15 fabs, with a total investment of 570 billion yuan; plans to build 8 fabs, with an estimated investment of 730 billion yuan. According to data released by the International Semiconductor Equipment and Materials Association (SEMI), by 2020, 62 new fabs will be built globally, of which 26 will be located in China, accounting for 42%.
The prosperity of the chip industry has directly driven the development of the quartz glass market, whose market scale has exceeded 20 billion yuan. Compared with the monopoly of the US, Japan and South Korea’s giants in the quartz glass market, the strength of domestic companies is slightly inferior, and the pattern of "two majors and three small" has initially formed, namely, two leading A-share listed companies (quartz shares and Philippine) and Three NEEQ listed companies (Yi Shida, CapitaLand Quartz and Xin Yi Ding). Among them, Quartz Co., Ltd. and Feilihua are stronger and have a larger production scale. In 2017, the two companies achieved operating income of 563 million yuan and 545 million yuan, respectively, and realized net profits of 108 million yuan and 122 million yuan. Among the three NEEQ listed companies, Yishida has the stronger strength, and CapitaLand Quartz and Xinyiding have similar strengths. It is worth mentioning that Xinyiding has achieved remarkable growth. Its operating income and net profit growth rates reached 54.41% and 70.56% in 2017, respectively, showing a strong momentum of catching up from behind.
