We have investigated the industrial chain of wafer foundry, apple industrial chain, passive components, PCB, IC design, etc. From the survey, we can see that the industrial chain has sufficient orders in the third quarter and the production capacity is tight. The apple industrial chain has been operating at full capacity in the third quarter to prepare new machines.We believe that in the third quarter of the peak demand season, China's mobile phone sales are increasing and apple's new products are expected to see a rebound in the sector. We suggest paying attention to the main line of 5G benefits, apple's industrial chain, power semiconductor devices, automobile electronics and PCB concentration.
Qualcomm recently announced the launch of the world's first fully integrated 5G millimeter wave antenna module and the rf module below 6GHz for smart phones and other mobile terminals. The latest components are being sent to customers. It is expected to be built into the first batch of 5G phones in early 2019.We research the Taiwan gaas foundry leader and domestic mobile phone ODM manufacturer, qualcomm, Skyworks international companies such as accelerated significantly in 5 g technology development, domestic handset manufacturers also actively promote 5 g handset research and development, is expected in 2019 will each brand mobile phone, mobile phone antenna and rf front-end system is also the significant changes, and new opportunities.During the evolution of mobile phones from 4G to 5G, the antenna will undergo major changes, and the value volume of single machine is expected to increase significantly. We are optimistic about key beneficiary companies, such as lixun precision and xinwei communication.We know from the industry chain research that there are many orders in the third quarter, the problem of mass production of LCD version is gradually solved, and the problem of touch control fit has been basically solved. We are optimistic about the demand of new products and replacement in the apple industrial chain.
High power semiconductor devices industry boom is expected to continue from the point of demand, intelligent vehicle electrification and a big increase in demand for power semiconductor devices, high-speed rail, subway and IOT devices, cloud computing and other fields and demand, and infineon, stmicroelectronics and various international IDM companies in recent years, there is no expansion plans, 8 inches foundries huahong semiconductor, the world's advanced, TSMC is restricted by equipment expansion rate is limited, we predict the future 1 ~ 2 years industry high sentiment is expected to continue.Mainland power semiconductor device manufacturers welcome the opportunity for development, price increases will directly benefit, not price increases can undertake transfer orders, although domestic development is still relatively weak, but in the context of trade friction between China and the United States and the devaluation of the RMB, domestic replacement demand is urgent.