With the development of modern manufacturing industries such as pan-semiconductor, optical fiber, biomedicine and video beverage, the industry of high-purity process system emerges at the historic moment. The investment of high-purity process system accounts for about 5-8% of the investment of semiconductor industry. Under the support and guidance of China, the expansion and planning of semiconductor wafer plant have entered a stage of rapid development. According to the development of semiconductor industry, the market space of Chinese high purity process system is expected to reach 11 billion in the next three years.

Major sectors of the global semiconductor industry have accelerated their shift to China

According to Gartner, global semiconductor sales revenue reached $420.4 billion in 2017, up 21.5 percent year on year and the first double-digit growth since hovering at $340 billion from 2014 to 2016. IC insights predicts that the semiconductor industry will grow another 14% to $509.1 billion in 2018 (data shows semiconductor industry growth of nearly 20% from January to May 2018). It is expected to maintain stable growth in the next three years, with a CAGR of 5%.

According to data released by IDC, it is expected that in 2025, the total amount of data in the world will exceed 163 ZBS, more than 10 times of the current. In order to collect, store and process these data, the demand for analog chips, memory chips and logic chips will also see rapid development. With the rapid development of emerging technologies such as AI, IOT, cloud computing and functional driving, the global demand for semiconductors is expected to exceed one trillion pieces in 2018.

According to SEMI estimates, 62 semiconductor fabs are expected to start production globally between 2017 and 2020, of which 26 will be located in the Chinese mainland, accounting for 42% of the global total. According to the current planning and process, it is expected that in 2018, mainland China is expected to build 13 plants, accounting for more than 50%.

According to the statistics of SEMI and China Information Industry Chamber of Commerce CESA, the target development of domestic semiconductor industry from 2014 to 2017 was 1.5 billion US dollars, 2.2 billion US dollars, 3.9 billion US dollars and 7.9 billion US dollars respectively. In 2018, the capital expenditure of the semiconductor industry is expected to reach $11 billion, which is expected to remain at a high level in the next three years. Orient Securities believes that local suppliers in the semiconductor industry are enjoying a golden period of rapid development.

Most of the shunts of semiconductor production and manufacturing need to be completed under the protection of clean room or high purity process. High purity process system is a necessary link in the construction of semiconductor plant. Generally speaking, the investment of high purity process system accounts for about 5-8% of the investment of semiconductor industry. Judging from the future development of semiconductor industry, the market space of high purity process system is expected to reach 11 billion in the next three years.