Chip Breakthrough: The Power of Rise

Without a lithography machine, there would be no chips. Even with eighteen types of martial arts and supernatural craftsmanship, our axes, hooks, and forks are difficult to manually polish into chips. In the newly listed prospectus of Yandong Micro, there is exciting news that the lithography machines they purchased from Shanghai Microelectronics are currently fulfilling their contracts. Chinese chips have taken a crucial step.
In the prospectus of Yandong Micro, there are suppliers from listed companies such as Northern Huachuang, among which Shanghai Microelectronics is listed as a supplier of lithography machines. As the mother of chips, lithography machines have always been monopolized by ASML company, and ASML is not a completely independent technology company. Their technology can be said to integrate top technologies from more than a dozen countries. It is almost impossible for a country or a company to independently complete the research and development of lithography machines in the chip field. China needs to cross the border.
European and American countries, led by the United States, are increasingly facing obstacles to Chinese chips. From chip breakage to the current talent restrictions, independent chip research and development has become a top priority for China. Especially with the development of modern intelligence in China, led by smart cars, the demand for chips in various industries in China is increasing day by day. If China's industrial chain wants to maintain global competitiveness, intelligence is a key competitive field, and the lithography machine, the mother of chips, has become a challenge to overcome.
As of December 14, 2022, the US chip industry has raised over $32 billion through IPOs, while China has nearly $12 billion. From the perspective of capitalization of chip companies, there is still a certain gap between China and American companies, but it is gratifying that the amount of IPO funds raised in China in 2022 has already tripled compared to 2021. If the enterprises queuing up for IPO in Chinese Mainland are counted, the financing scale of the chip industry is nearly 17 billion dollars.
According to data from Hanguang Suwen Research Institute, the average time from submitting a listing application to successfully listing on the Science and Technology Innovation Board is 186 days, while the average listing time of 26 semiconductor companies that have already successfully IPO is 156 days. The general manager of the Shanghai Stock Exchange even publicly called on investors to allocate limited resources to the areas where national technological innovation is most needed. With the US gradually increasing its restrictions on chip exports to China, domestic chip substitution has become a long-term solution for the Chinese semiconductor industry.
The Chinese capital market has shown great enthusiasm for the semiconductor industry. In 2019, the United States Department of Commerce listed the image processing unit manufacturer HiLight Information on the list of entities. HiLight Information was listed on the Science and Technology Innovation Board in 2022. It was originally planned to raise 9.148 billion yuan. The institutions raised their expectations for HiLight Information, gave 315 times the price earnings ratio, 11 times higher than the industry average, and gave HiLight Information 1.7 billion yuan more. Semiconductor companies with a P/E ratio exceeding 300 times in 2022 also include companies such as Nano Microelectronics and Dongwei Semiconductor.
Yandong Micro, which purchases Shanghai microelectronic lithography machines, raised 3.95 billion yuan to build a 12 inch wafer production line mainly using domestic equipment. The IPO P/E ratio of Yandong Micro is 68.39 times, which is 2.52 times that of the industry. In 2022, investors have invested more patience in chip listed companies, with nearly