Recently, the State Council issued "Several Policies to Promote the High-quality Development of Integrated Circuit Industry and Software Industry in the New Era". According to China Customs statistics, the import value of chips in China in 2019 was US$ 304 billion, far exceeding the second-ranked crude oil import value. Although the total import value of chips is huge, compared with 2018, the import value decreased by 8 billion US dollars, down 2.6% year-on-year.

The insiders believe that the development of domestic chips is accelerating. Under the policy of Vigorously promote, the chip industry has great room for domestic substitution, and the market-oriented development of the whole domestic chip industry also has great room for improvement. Relevant data released by the State Council show that China's chip self-sufficiency rate will reach 70% in 2025, while in 2019, China's chip self-sufficiency rate is only about 30%.

How do related listed companies perform in the capital market? According to the wind chip index, as of the end of July, the chip index has increased by 49.46% this year. In the A-share market, the market value of SMIC listed on the Science and Technology Board in July has exceeded 200 billion yuan, and the market value of enterprises such as Weil and Wentai Technology has exceeded 100 billion yuan. According to industry insiders, the sales revenue of China's integrated circuit industry is 756.22 billion yuan in 2019, and the sales revenue of China's integrated circuit industry is expected to exceed 900 billion yuan in 2020. Benefiting from the improvement of the overall industry prosperity, the chip industry will continue to maintain rapid development, and can focus on relevant leading enterprises.

Source: CCTV Finance