The main factors of the current domestic cable market instability is excess capacity. According to statistics, as of last year, more than 40% domestic cable industry overcapacity, say serious point is vital. It is well known that an industry capacity utilization rate lower than 80% can be referred to as the excess production capacity. And at present, wire and cable industry capacity utilization rate at about 60%, phenomenon of excess production capacity has been very serious. But even so, the current domestic still has a batch of under construction, proposed projects, cable industry overcapacity will increasingly prominent. And not only so, wire and cable industry optical fiber cable market.

The cause of the cable industry overcapacity

Government support, the independent innovation is not 迚 alternative strategy, China's integrated circuit industry will 迚 into the new stage of development; Short-term is more policy stimulus under the theme of the investment, but long-term is reshaping industry 戓 slightly sexual opportunities.

The point of the investment:

Integrated circuit industry in China's far higher, independent innovation, and it is imperative to import substitution, industry space is huge. At present, the domestic integrated circuit enterprises production materials and equipment (丌 including upstream) in the global 卙 than about 15%; Dependence on 迚 mouth still is bigger, the chip 迚 mouth amount about five or six times that of our native enterprises production. From the Angle of enterprises can be observed that the future growth of the gap and space, the design of the 2012 global ranking the first company (American qualcomm) revenue of $13.2 billion, the crystal form of foundry enterprise (TSMC) revenue of $17.2 billion, are the domestic similar enterprises in our country (haisi and smic) revenue incredible accomplishments die about 10 times.

Policy strongly support, the industry will enter a new stage of development. Our government in encourage the development of IC industry, mainly include: system support industry of the state council issued no. 18 and no. 4, 01, 02, major science and technology and items (i.e., "nuclear kogi" and "integrated circuit" equipment and items), and the government's leading industry fund. December 13 years, the national development and reform commission, ministry of industry and the government in Beijing 兯 was established with "Beijing's integrated circuit industry equity funds", the fund total incredible accomplishments die 30 billion yuan. In the face of the prism door dwyane and national information security, the government continues to line under, we expect the future worth looking forward to more and more support policy.

Domestic IC industry mainly presents the vertical division of labor pattern, relative advantage is mainly in the design and testing. Global semiconductor industry at present there are two main development pattern: the traditional model of integration device manufacturing (IDM) and 20 gai Wan 60 s gradually developed vertical division of labor pattern (Fabless + Foundry + packaging test generation of labor). Domestic IC industry in our country at present the basic follow vertical division of labor pattern, Mian testing link output 卙 is larger. In addition, after the 18th article released in China, have produced a new batch of Fabless company, powerful zone under the level of China's integrated circuit design, design industry output value from 卙 in 2006 than the 18.5% to 29% in 2012, become the fastest growing areas in the three links.

A-share companies have focused on the design and testing links, and some of the materials and equipment companies. The key company: design - tongfang core, Beijing jun is; Closed beta - long telegram, crystal science and technology of science and technology; Material and equipment - seven electrons.

Risk tip: supporting policies low expectations, technology risk, competition risk, wave under the downstream demand, etc.