Semiconductor industry is in the up-cycle , the driving force shift from PC Mobile Internet: growth of the global semiconductor industry associated with high GDP, the gradual recovery of the global economy , driven by the steady growth of the semiconductor industry . From the downstream , is expected next year will become a driving force intelligent terminal largest semiconductor growth applications .Continuous decline in capital equipment spending , further to the supply and demand situation is good: 2012, 2013 global semiconductor equipment capital spending declined for two consecutive years , while the production capacity put in capital expenditures over the one-year lag , so we expect that by 2015 the industry will be able to rapidly re-emergence expansion of the case . 2014 will be the demand continues to improve, while a further slowdown in the expansion of production capacity a year , the industry boom will be better than this year .Import substitution huge space policy support as an investment catalyst : on the one hand , the supply and demand of domestic chip market there is a huge gap, on the other hand China the world's semiconductor production value proportion is rising , import substitution is occurring. Its long-term driving force mainly from 1) the rise of local brands 2) IC design rise of the whole industry chain drive 3 ) the domestic semiconductor industry technological progress. Meanwhile , the state of the semiconductor industry increasingly seriously, the policy is expected to put more efforts conducive to industry consolidation , concentration of resources , enhance the competitiveness of the leading manufacturers , is the industry's investment catalyst. Investment Strategy: 2014 global semiconductor industry supply and demand situation is further to the good investment policy to support the industry catalyst , we continue to maintain the semiconductor industry "recommended " rating , the key recommendation Huatian Technology , Tongfang Guoxin , Beijing Jun . The semiconductor investment clock , we believe in the benefit of this round , IC design first, manufacturing, packaging and testing synchronization , device lag. IC design, we recommend the same side Guoxin ( financial IC card localization beneficiaries ) , Beijing Jun ( China wearable device chip leader ) , Silan ( only IDM plant, R & D platform edge ) . At the same time a strong focus Spreadtrum and RDA return. Manufacturing, packaging and testing areas , we recommend Huatian Technology (TSV technology leader ) , Changjiang Electronics Technology (MIS packaging technology and bumping + FCBGA layout ) , Nantong Fujitsu Microelectronics (WLP technology into the high-end market ) , an active interest in SMIC ( H shares , 45nm volume production ) . Equipment sectors , we recommend concerned Seven Star Electronics , Han's Laser .