Packaging / Advertising & Office

Nikkei News, the Japanese government plans to set up a 100 billion yen fund in 2022 for semiconductors, batteries and artificial intelligence and other technologies related to economic security. The fund will be used to fund research and development projects led by companies and universities. The important position of semiconductors, batteries and artificial intelligence in future industry competition can be seen from this.

In recent years, competition around semiconductor chips and new battery technology has been unfolding among major technological countries such as China, the United States, Europe, Japan, and South Korea. Today, we will take stock of three packaging and printing companies that master the core technology of chip and battery manufacturing.

Toppan Printing: The world's largest mask manufacturer, Q2 net profit increased by 14 times

Toppan, the sponsor of the Olympic Games, announced on the 6th that the consolidated net profit for the April-June period of 2021 was 9.1 billion yen, 14 times that of the same period last year. Due to the increased demand for artificial intelligence (AI) and 5G, the semiconductor market is booming, and sales of semiconductor-related components are strong.

In addition to printing, Toppan Printing is also engaged in precision industries such as LCD color filters and semiconductor photomask manufacturing. Data shows that Toppan Printing is the world's largest mask manufacturer with a market share of more than 30%.

In 2021, Toppan Printing has begun mass production for the semiconductor direction, 5nm (the most cutting-edge etching line width, 1nm is one billionth of a meter) photomask (Photo Mask), to cope with the new generation of mobile The demand for high-performance semiconductors in the direction of communication specifications (5G) and unmanned driving. In addition, Toppan Printing is also striving for mass production of 3nm photomasks in 2023.

Dainippon Printing: Demand for the semiconductor market broke out, and profit in the second quarter doubled year-on-year

Da Nippon Printing Co., Ltd. (DNP) announced the April-June 2021 consolidated financial report on the 5th, showing that sales for the quarter increased by 3% to 331.9 billion yen, operating profit increased by 71% to 16.5 billion yen, and net profit was 148. Billion yen, double the amount in the same period last year.

The orders for OLED metal masks used in the manufacture of smartphones are also large. As the demand for the semiconductor market broke out in an all-round way, products related to electronic components performed strongly. In 2020, the company has developed a new mask mass production process that can support 5nm semiconductor production. In addition, it has also cooperated with the Belgian research and development organization IMEC and other companies to start research and development for 3nm products. In addition, Dainippon Printing is also a world-class high-tech mask manufacturing company.

According to Nikkei, Da Nippon Printing has increased its production of battery pouches, which are exterior materials used for lithium-ion batteries in electric vehicles, in the current season. Affected by the expansion of the epidemic, the business has recovered from a 20-year trough.

Enjie shares: the net profit of Enjie shares increased 3 times year-on-year

According to the announcement, in the first half of this year, the non-net profit of Enjie's parent deduction was RMB 950 million to RMB 1.05 billion, an increase of 255.16% to 292.54% over the same period of the previous year. Enjie's predecessor was Yunnan Chuangxin New Materials Group, which was established in July 2001. Chuangxin shares are mainly engaged in comprehensive packaging and printing business including special paper and cigarette labels. In May 2017, Chuangxin shares announced the acquisition of 100% equity in Shanghai Enjie at a price of 5.55 billion yuan, officially entering the field of lithium battery diaphragms.

Compared with other lithium battery materials, wet-process separators are one of the best choices for market concentration and pattern at present, and a tripartite pattern of Enjie, Sinoma Technology, and Xingyuan Materials has been formed in China. The Changjiang Securities Research Report pointed out that after mergers and acquisitions, Enjie's domestic market share is expected to exceed 50%, and the market share of Sinoma Technology and Xingyuan Material is expected to be about 10%-20%.

On August 3, Enjie issued two announcements in succession, announcing the establishment of a joint venture company with Yiwei Lithium Energy (300014.SZ) in Jingmen to build a wet-process lithium-ion battery isolation film and coating with an annual production capacity of 1.6 billion square meters. The cloth membrane project, the planned total investment is 5.2 billion yuan; and the establishment of a joint venture company with Shengli Precision (002426.SZ) to acquire Suzhou Fortune Technology Co., Ltd. and JOT Automation Ltd (hereinafter collectively referred to as the "target company").

The Chinese-style industry has moved from the zero point of being poor and white to the world market, and mastering the core technology is the key factor. Today the global industry is undergoing rapid development and tremendous changes. Whoever masters the core technology has the highest right to speak.

Hope that more Enjie shares will emerge in China.