Hot spotlight: localization of integrated circuit mobile terminal or continuous breakthrough

According to statistics from the China Semiconductor Industry Association, China's integrated circuit industry sales in the first half of 2014 were 133.86 billion yuan, up 15.8% year-on-year. Among them, the design industry continued to maintain rapid growth, with sales of 42.82 billion yuan, a year-on-year increase of 29.1%; manufacturing sales of 32.62 billion yuan, a year-on-year increase of 6.8%; packaging and testing industry sales of 58.42 billion yuan, a year-on-year increase of 12.6%. While the industry is growing rapidly, dependence on imports has begun to decline for the first time. According to customs statistics, in the first half of 2014, 130.29 billion integrated circuits were imported, an increase of 1.6% year-on-year; the import value was US$98.81 billion, a decrease of 17.1% year-on-year.

With the strong support of policies, the outbreak of mobile demand has become the biggest driving force for the rapid rise of China's local integrated circuit industry. A group of domestic integrated electronics companies, including Spreadtrum, Huawei HiSilicon, Retec, and Geke Microelectronics, have achieved group breakthroughs in the fields of baseband communication chips, image sensors, CPUs, etc. around the trend of mobile terminal explosions. Apple iPhone 6 is expected to be launched in September. The industry generally expects that the “fingerprint recognition + NFC” mobile payment standard will become a new round of transformation in the mobile market led by iPhone 6, and will also bring a wave of hardware updates. The entire industry chain, including fingerprint identification chips, packaging, and modules, is expected to usher in a new round of investment opportunities. Related companies include Datang Telecom 600198 and Hengbao 002104.