It is understood that the world's second largest testing factory by Ann (Amkor), has become the latest government across the industry support fund demand, many groups have in the second half of the plan to bid for 2016, including just finished buy star division chippac long telegram group. Mainland testing industry, recently the central government has prepared RMB 10 billion ~ 20 billion lines, encourage enterprises to brave to acquisition by Ann, who is a hero money is bravery, Ann on the next is expected to get a lot of invitation from the mainland. Because among the 12 inch factory investment, based on the Chinese mainland consumer electronics one of the biggest manufacture and application market, China's packaging big opportunities for all ages.
Global testing industry seems to be in 2016 years, became instant, moonlight, Ann on the structure of the three tripartite confrontation with long telegram, etc. Following the long telegram group successful merger and acquisition star division ChipPAC (STATS ChipPAC), moonlight, silicon products also finished allied action, in on both sides of the testing industry chain is constantly SouKuo advantages, geographical and human conditions, by high prices will finally agreed to by and Ann, has become a new topic of global testing industry chain.
Taiwan semiconductor personage points out, because of the global testing industry with low barriers to entry, and more than 70% of the cost from the machine equipment purchase, in mainland China over the next five years, may have more than 10 12 inches fabs will be put into operation. And outside the island, IC design industry is becoming more and more tend to local testing business in mainland China, strive for the mainland government for some preferential policy benefits provided by the local semiconductor industry chain, China central and local government in this moment, if choose to invest wafer manufacturing, there will be cost more than the problem of high risk. But if choose IC design companies to invest, but run into small without a short-acting contradiction.
At this time, select the closed beta industrial investment funds, as long as the machine equipment like moonlight, silicon products, even as customers buy, said there's immediately business, investment amount and moderate, enough to absorb the budget, this is China semiconductor industry manufacture goal, instead, the fastest in the closed beta owners see results of background factors. Sealing test, however, factory need to rely on more near fabs location advantage, both Taiwan and mainland market in the future there are a number of emerging fabs will be produced, the alignment of the moonlight, silicon products, or the rise of long telegram group testing such as mainland factory, are expected to fully enjoy the advantage in a competitive advantage.
Thus, Ann is the world's second largest sealing test factory, but in the face of Japan moonlight, silicon product holding company of the pressure of competition, and under the long telegram testing industry group and other mainland harassment tactics, how broken down, the future is quite intriguing. And the face seal on both sides of the Taiwan power measurement and continuously, also continued investment expansion of advanced technology and advanced packaging production capacity, the future global testing industry chain instead of the factory to work on both sides of the sealing test, it has been difficult to stop. Essence securities TMT research shows that: China's semiconductor testing, technological catch-up, entering the market expansion phase, and clearly put forward m&a is an effective opportunities for expansion.
Global test market growth is expected to maintain the growth rate of 5.2%, domestic testing sales keep 23.8% growth, but the high proportion of foreign factories in mainland China, domestic enterprises accounted for only 8.65% total, domestic enterprises accounted for the future is expected to continue to rise. Global testing earned $2014 in 27.13 billion, compared with $2013 in 25.08 billion, an increase of 8.2%. Domestic testing sales income is 123.85 billion yuan in 2014, up 23.8% from a year earlier, remain above 20% growth for three consecutive years, thus it can be seen that testing the sales revenue of about eighty percent in the domestic. But, according to Gartner, 2014 mainland package vendor's sales revenue of $2.448 billion, accounts for only 8.65% of global income, shows that foreign investment in the mainland factories domestic thickening percentage to sales greatly. Domestic enterprises is on the rise of global revenues accounted, we expect that the future will continue to rise, two years of 10% or more. Can be seen from the long telegram grasping the revenue ratio of moonlight, rising nearly five years, long telegram revenue reached 2014 12.33% of the moon.
We choose long telegram as domestic testing the research object, because the volume is larger, the whole product line.
Semiconductor industry capital investment properties in the field of testing is extremely obvious, through the global testing vendor's capital investment growth as you can see, the long telegram capital investment growth at higher levels, suggests that future growth space is larger. After the J - 2015 Devices, although the number is far less than the moonlight, but after m&a star division chippac, capital investment in Amkor phase
From a technical point of comparison, long telegram to keep technological catch-up in ase, high-end testing behind, market share competition more lies in the grasp of the customer. Materials of various aspects, you can see that compared to the long telegram ase now in 3 d system level assembly field there are still lack, so consumer electronics miniaturization packaging requirements become company pain points. The difference with other testing technology, we can understand for is a strategic choice for the product structure. From the company's gross margin, the situation can be seen, long telegram 2014 gross profit margin is higher than that of ase. Although the net interest rate gap is still obvious, but we think after rising market share in the future, management will be optimized, especially after rising revenue r&d expenses burden will be eased, is conducive to improving the quality of net income.
Under the long telegram to star refers to Ann by secco chippac and sword
Can be seen from the star division chippac long telegram m&a cases, mergers and acquisitions to broaden market and technology has become an important option for the closed beta development, do DaTiLiang important index of the investment, expand the customer base to become sealing test, when the industry concentration degree is higher, the single target return on investment tend to industry as a whole. From star chippac customer base can be found that mergers and acquisitions can make long telegram to qualcomm, broadcom, MTK, Marvell, Intel and other high-end customers, in order to gain a bigger international market share. We think this is the future trend of the development of testing industry, industry by developing into a period of consolidation and oligopoly, especially Japanese manufacturers gradually withdraw from the market competition, the market share of redistribution to become investment hotspot, gradually shift to Chinese manufacturers and capacity, but the logic of explosive limited earnings growth
Important means growing of China's core - the international mergers and acquisitions
International merger and acquisition is a country at present mainly choose the path for the development of integrated circuit, billions of dollars to support, focus on leading enterprises. The Chinese government's plan is $19.5 billion investment in the semiconductor industry, in addition to local governments from China and $97.4 billion of private equity industry. Semiconductor industry into the late mature, industry consolidation, according to Thomson Reuters data, in the past year, the global semiconductor industry, a total of 472 m&a from the previous year increased by 89, involves the amount of $31 billion, a record since 2011. China's capital is one of the backbone, Chinese companies a total of about $5 billion in value in involved in the five big mergers, more than 60 times the sum of the eight years from 2005 to 2012. Long telegram science and technology in 2015 for $780 million (RMB 4.834 billion) to buy the world's fourth largest listed in Singapore enterprise branch chippac stars. Wu Yuefeng capital on March 12th, and reached a deal (ISSI) semiconductors, for about $639.5 million total m&a core into a semiconductor. In addition, the acquisition in Marvell, Dongbu negotiation, we believe that the success probability is higher. With the support of big money, mergers and acquisitions overseas assets of enterprises can achieve rapid development, the design company that does not involve heavy assets, the r&d team can greatly promote domestic chip design ability, so we prefer design company integrate short-term benefits. Packaging enterprises is of great importance in mass production on certain technology platform, m&a is directly cut into the upstream and downstream customers and capacity expansion, production and application of the big market opportunities in China, and medium-term bullish.
From the point of international mergers and acquisitions, chip design companies still spread out, will become the main sub-fields of long-term acquisition of integrated circuits. Since 13 years of acquisition, semiconductor industry mergers and acquisitions to trade more acquisitions to expand market share, more than the acquisition of the upstream and downstream type appears in the field of equipment, such as almost monopoly lithography light manufacturer Cymer ASML m&a market. Look from the body, such as merger and acquisition of NXP Freescale direct selling RF department to balance results, so the design of industry concentration will continue to ascend, in the process of concentration of ascension, enterprise's market value will continue to expand, the merger synergies will also force companies to accelerate development. For China's enterprises, injection is not just a technology, talent, also expand downstream market, number of semiconductor industry mergers and acquisitions will continue to increase in the future. Extend semiconductor industry peers in the field of mergers and acquisitions mergers and acquisitions of logic, we think that Chinese companies exist but not market share is still the most areas of opportunity, such as mobile phone processor, PA, display driver, wireless transmission, camera sensor, etc.
