The semiconductor industry is a fundamental supporting industry of the national economy. From both a technological and economic perspective, the importance of semiconductors is enormous and irreplaceable, and the government's support for the industry is also very firm. In 2019, the sales revenue of China's integrated circuit industry was 756.23 billion yuan, a year-on-year increase of 15.8%; In the first half of 2020, China's integrated circuit industry maintained rapid growth, with a sales scale of 353.9 billion yuan, a year-on-year increase of 16.1%. The prosperity of China's semiconductor industry continues to rise, ushering in a new round of development opportunities.

2. The semiconductor industry has strong demand. With the transformation of China's economic development mode, the accelerated adjustment of industrial structure, the deep integration of industrialization and informatization, and the strong promotion of local information consumption by the government, it is estimated that by 2025, the market demand for Chinese semiconductors will continue to grow at a compound annual growth rate of 6% for the next seven years. The market share of Chinese semiconductors (RMB 167 trillion or USD 238 billion) in the world will increase from 50% in 2018 to 56% in 2025.

3. There are numerous segmented semiconductor industries with strong market segmentation and large investment opportunities. The semiconductor industry has a long chain and broad application areas, with strong market segmentation. The scope involved from upstream semiconductor materials to midstream equipment and downstream application areas is very broad, making it difficult to form a dominant monopoly pattern. Therefore, it is beneficial for enterprises to utilize their own characteristics, form their own technological system and competitive advantages.

According to data from the Semiconductor Industry Association (SIA), driven by strong demand, global semiconductor product sales reached $43.6 billion in May this year. The sales in May reached 43.6 billion US dollars, which means there has been a significant year-on-year and month on month growth. Last May, the global sales of semiconductor products were 34.6 billion US dollars, an increase of 9 billion US dollars from 43.6 billion US dollars in May this year, a year-on-year increase of 26.2%; On a month on month basis, data from the Semiconductor Industry Association showed a growth of 4.1%. According to foreign media reports, driven by strong demand for semiconductor components in automobiles and consumer electronics, the sales of semiconductor products have continued to be strong.