Market Overview of Quartz Glass

As the Sino-U.S. trade war kicked off, a series of high‑profile developments unfolded: ZTE was hit with U.S. sanctions, Huawei announced its withdrawal from the U.S. market, and Qualcomm emerged as the biggest beneficiary of 5G standard‑setting. Even ordinary citizens were abuzz with talk of the “chip shortage and lack of core technologies.”

2022-08-20

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  As the Sino‑U.S. trade war unfolded, a series of dramatic developments ensued: ZTE was hit with U.S. sanctions, Huawei announced its withdrawal from the U.S. market, and Qualcomm emerged as the biggest beneficiary of 5G standard‑setting. Even ordinary citizens have been discussing the issue of “chip shortages and reliance on foreign cores.” Without core chip technologies, China’s manufacturing sector finds itself choked at its very throat, and this poses a major obstacle to the country’s strategy of becoming a global power. Consequently, developing an internationally competitive “national chip” has become an urgent priority.
  To break the U.S.–Japan–South Korea monopoly, it is essential to lay a solid foundation—starting with advanced silicon wafer manufacturing technology. At present, China has 15 wafer fabs under construction, with total investments amounting to RMB 570 billion; an additional eight fabs are planned, with projected investments of RMB 730 billion. According to data released by the Semiconductor Equipment and Materials International (SEMI), by 2020, 62 new wafer fabs will be built worldwide, 26 of which will be located in China, accounting for as much as 42%.
  The robust performance of the semiconductor industry has directly fueled growth in the quartz glass market, which has now surpassed RMB 20 billion in size. Compared with the near‑monopoly held by major players from the U.S., Japan, and South Korea, domestic firms remain somewhat weaker, giving rise to a nascent “two big, three small” structure: two leading A‑share‑listed companies—Shiying Shares and Philhua—and three companies listed on the New Third Board—Yishida, Kaide Quartz, and Xinyideng. Among these, Shiying Shares and Philhua stand out for their strong capabilities and sizable production scales. In 2017, they reported revenues of RMB 563 million and RMB 545 million, respectively, with net profits of RMB 108 million and RMB 122 million. Among the three New Third Board‑listed firms, Yishida is the most prominent, while Kaide Quartz and Xinyideng are roughly comparable in strength. Notably, Xinyideng has demonstrated remarkable growth, posting year‑on‑year revenue and net profit increases of 54.41% and 70.56%, respectively, signaling strong potential to catch up and even overtake its peers.


Keywords:

Trade,Huawei,5G

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