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Processor, major technology upgrade cycle every 8-10 years

• A major upgrade of the processor every 8-10 years brings a new growth cycle. Intel corporation of the United States is a leading enterprise in the design of the current global processor field, and also one of the links with the highest technical barriers in the semiconductor industry.
• We believe that the processor is the core part of the computer and server, representing the computing power of the computer, and the entire cycle of the computer and Internet technology revolution is based on computing, so as to achieve technological leapfrog.
• Intel developed its first commercially available processor back in 1971. Since then, Intel has been playing catch-up with Moore's Law, rolling out a heavyweight upgrade every eight to 10 years. In 1985, Intel introduced its first 32-bit microprocessor 386, which generated $2.9 billion in sales in 1986, and its stock began to soar. By 1993, Intel had released its heavyweight Pentium processor, again generating rapid profit growth and sending its share price soaring. When Intel released its Pentium 4 processor in 2001, it marked a new wave of innovation, but its share price recovered only briefly when the dotcom bubble burst.
• In 2011, Intel released its first six-core processor, Core I7, which greatly improved its performance again and greatly increased Intel's market share. From the perspective of finance, it also presents a certain characteristic of periodic fluctuation. In the future, trade frictions between China and the US will show a trend of repeated back-and-forth for a long time. However, from top to bottom in China, from government departments to enterprises, the direction of developing core technologies has been fully defined, among which semiconductor is the top priority.
Related Information
The global integrated circuit equipment market is highly monopolized
• Characteristics: strong technical barriers brought by short technology renewal cycle, great market barriers brought by high degree of market monopoly, and extremely high recognition barriers brought by competition and cooperation among customers. Therefore, the integrated circuit equipment market is highly monopolized, and the segmentation market is dominant;
• IC industry belongs to the industry with heavy capital expenditure, "big investment, big income, medium investment, no income, small investment, big loss";
• According to the global Wafer Fab Forecast report released by SEMI, 62 new wafer processing lines are expected to be built globally in the four years from 2017 to 2020. Among them, 26 new fabs will be built in mainland China, making it the most active region in the world in terms of new wafer fab construction. The total investment is expected to account for 42% of new wafer fab construction globally, which is the highest in the world.
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