Chinese semiconductor industry

tokenanalyst · Jul 23, 2022

The issuer will give Tsinghua University a certain percentage of the annual operating income of related products including but not limited to nano-precision motion and measurement and control systems, precision motion system products and vibration isolation products as a commission fee. The base and proportion of sales royalties shall be determined by both parties through negotiation.

2. The issuer collects and pays the central financial funds of Tsinghua University 02 special project and the national key research and development plan

The issuer is a project of the 02 special project of " product development and capacity building of immersion lithography machine double workpiece stage " , " development of immersion double workpiece stage plane grating position measurement system " , and national key research and development plan " long - stroke precision motion platform " The responsible unit, collects and pays the central financial funds of Tsinghua University, the research unit. 02 The project task statement of the special and national key research and development plans clarifies the budget amount and allocation progress of the central financial funds.

3. Patent technology implementation license, patent technology transfer

The issuer and Tsinghua University shall refer to the terms of the technology transfer contract signed in the past on the licensing and implementation of the patented technology produced by the cooperative research and development in the 02 special project, and the transfer of the patented technology produced by the independent research and development of the company during the part-time participation of Tsinghua University teachers. Patent technology license fee, patent technology transfer fee.

The licensing and implementation of the above-mentioned patented technology and the transfer of the patented technology have been approved by the Department of Mechanical Engineering of Tsinghua University and reviewed and approved by the Leading Group of Intellectual Property Management of Tsinghua University, which conform to relevant procedures and the price is fair.

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

As of December 31 , 2021 , the company's 02 special R&D project has formed a total of 20 R &D prototypes,
85 test units. Accountants and sponsors will count all R&D prototypes and test units one by one. at the same time,

According to the release details of the 02 special R&D project provided by the issuer, a specific selection is made for the specific material receiving conditions for forming the R&D prototype and test unit . True and accurate; the specific draws are as follows:

"some of whom i guess, no I HOPE AND PRAY where sent to SMEE and others to use in the development of the overall scanner"

THE RESEARCH AND DEVELOPMENT OF THE IMMERSION WAFER STAGE IS OVER, THE BALL IS IN U-PRECISION NOW, WHEN THEY ARE GOING TO DELIVER THE FULL WORKING STAGE IS ANOTHER ISSUE. I read but i can't find the document because i didn't save it at the time that was going to be this year.

coolieno99 · Jul 23, 2022

deletion

by78 · Jul 23, 2022

hvpc said:
I took a quick crack at translating the video almost verbatim. I did rearrange the order of the info and highlighted key message in bold font. Buy it's basically a transcript of the video, not mine opinion.

I did not have the luxury of Google translator and solely relied on my rudimentary Chinese listening skill. If I made mistake translating, hope others would help point them out and make corrections.

The creator/author presented the video in 5 sections

=====================
1.

UPrecision delivered 5 sets DWS dual stages to SMEE from April ’20 to Dec ’21.

Note: DWS is dual stage for dry litho tool & DWSi is for immersion tool.

The host of video therefore assumed 3-5 assembled prototype (not production) litho systems at SMEE.

News of: 1. UPrecision & SMEE collaboration on proto I, II, & III systems along & 2. Delivery of 5 DWS to SMEE provide evidence to support assumption of at least 3 systems undergoing verification.

UPrecision revealed SMEE’s plan to ship litho system with DWS stages around end of 2022. Customers include Yangdong, YMTC, and CXMT. Uncertainties and risks with the plan remain a possibility.

2.

UPrecision has 327M RMB back order of DWS stages.

SMEE must have confidence in DWS stage otherwise would not issue such big order

Each DWS is ~20M RMB (but this couldn’t be verified).

So, SMEE may be planning 15-20 dry Lito tools in the near future

3. What can dry systems do?

UPrecision indicate DWS can support needs of 65nm litho systems.

Creator of video believes it may be possible to improve beyond 65nm capability, but these are not the rumored 28nm node litho system

4. Why isn't it for immersion?

Answer: Very simple, it (DWSi?) has not been (finished) developed yet.

The 02 project target is an immersion litho tool, not dry tool.

So, in another word, UPrecision has not realized its 02 project commitment yet.

5 What is the status of immersion development?

Two Immersion hood has already been developed by Cheer and delivered to SMEE.

But the immersion dual stage that goes hand-in-hand with the immersion hood is still in development.

Status of immersion dual stage development:

UPrecision had built 20 development prototype systems & 85 test units as of December 2021.

It is unclear if the 20 development prototype system refers to actual dual stages or modules. Combining with news of only 2 immersion hood, creator of video hypothesize it’s 20 module. Because having 20 immersion stage to go with 2 immersionhood just isn’t logical.

UPrecision development cost is high in 2019 & 2020 then drastically reduced in 2021. Author thinks this is sign that major milestone had been over taken so the development cost decreased drastically.

Filing for 02 project subsidy is based on projected expenses and raw material cost. Same trend of reduced subsidy filing observed in 2021. This is another clue suggesting development of immersion dual stages has entered mid-testing(?) phase.

6.Any concerns?

Yes. The dual stages interferometer supply source is Zygo, an American company. There is risk of supply being cut off. As there's no alternate domestic option, this is currently the biggest risk.

So, the good news: The (litho system) has finally reached volume production. The bad news: it's not THE (28nm) tool that everyone was hoping for. But, the first step has been taken so the next step will not be far away.

--- end of "transcript" ---

Thank you very much!

vincent · Jul 23, 2022

hvpc said:
Yes. The dual stages interferometer supply source is Zygo, an American company. There is risk of supply being cut off. As there's no alternate domestic option, this is currently the biggest risk.

u-precision can stockpile the component while invest in a domestic company to develop an alternative or develop it itself.

hvpc · Jul 23, 2022

THE RESEARCH AND DEVELOPMENT OF THE IMMERSION WAFER STAGE IS OVER,

this is good news.

THE BALL IS IN U-PRECISION NOW, WHEN THEY ARE GOING TO DELIVER THE FULL WORKING STAGE IS ANOTHER ISSUE.
I read but i can't find the document because i didn't save it at the time that was going to be this year.

@tokenanalyst, I found the file you are looking for:

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No translation this time, the file is too big. Sorry everyone. But I think I found sections that @tokenanalyst referenced so you can read directly (or with help of Google translator like me).

The issuer will give Tsinghua University a certain percentage of the annual operating income of related products including but not limited to nano-precision motion and measurement and control systems, precision motion system products and vibration isolation products as a commission fee. The base and proportion of sales royalties shall be determined by both parties through negotiation.

2. The issuer collects and pays the central financial funds of Tsinghua University 02 special project and the national key research and development plan

The issuer is a project of the 02 special project of " product development and capacity building of immersion lithography machine double workpiece stage " , " development of immersion double workpiece stage plane grating position measurement system " , and national key research and development plan " long - stroke precision motion platform " The responsible unit, collects and pays the central financial funds of Tsinghua University, the research unit. 02 The project task statement of the special and national key research and development plans clarifies the budget amount and allocation progress of the central financial funds.

3. Patent technology implementation license, patent technology transfer

The issuer and Tsinghua University shall refer to the terms of the technology transfer contract signed in the past on the licensing and implementation of the patented technology produced by the cooperative research and development in the 02 special project, and the transfer of the patented technology produced by the independent research and development of the company during the part-time participation of Tsinghua University teachers. Patent technology license fee, patent technology transfer fee.
The licensing and implementation of the above-mentioned patented technology and the transfer of the patented technology have been approved by the Department of Mechanical Engineering of Tsinghua University and reviewed and approved by the Leading Group of Intellectual Property Management of Tsinghua University, which conform to relevant procedures and the price is fair.
(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

page 8-2-1-76.

As of December 31 , 2021 , the company's 02 special R&D project has formed a total of 20 R &D prototypes,
85 test units. Accountants and sponsors will count all R&D prototypes and test units one by one. at the same time,

According to the release details of the 02 special R&D project provided by the issuer, a specific selection is made for the specific material receiving conditions for forming the R&D prototype and test unit . True and accurate; the specific draws are as follows:

page 8-2-1-169， bottom of page.

FriedButter · Jul 24, 2022

tokenanalyst said:
The issuer will give Tsinghua University a certain percentage of the annual operating income of related products including but not limited to nano-precision motion and measurement and control systems, precision motion system products and vibration isolation products as a commission fee. The base and proportion of sales royalties shall be determined by both parties through negotiation.

2. The issuer collects and pays the central financial funds of Tsinghua University 02 special project and the national key research and development plan

The issuer is a project of the 02 special project of " product development and capacity building of immersion lithography machine double workpiece stage " , " development of immersion double workpiece stage plane grating position measurement system " , and national key research and development plan " long - stroke precision motion platform " The responsible unit, collects and pays the central financial funds of Tsinghua University, the research unit. 02 The project task statement of the special and national key research and development plans clarifies the budget amount and allocation progress of the central financial funds.

3. Patent technology implementation license, patent technology transfer

The issuer and Tsinghua University shall refer to the terms of the technology transfer contract signed in the past on the licensing and implementation of the patented technology produced by the cooperative research and development in the 02 special project, and the transfer of the patented technology produced by the independent research and development of the company during the part-time participation of Tsinghua University teachers. Patent technology license fee, patent technology transfer fee.
The licensing and implementation of the above-mentioned patented technology and the transfer of the patented technology have been approved by the Department of Mechanical Engineering of Tsinghua University and reviewed and approved by the Leading Group of Intellectual Property Management of Tsinghua University, which conform to relevant procedures and the price is fair.
(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

As of December 31 , 2021 , the company's 02 special R&D project has formed a total of 20 R &D prototypes,
85 test units. Accountants and sponsors will count all R&D prototypes and test units one by one. at the same time,

According to the release details of the 02 special R&D project provided by the issuer, a specific selection is made for the specific material receiving conditions for forming the R&D prototype and test unit . True and accurate; the specific draws are as follows:

View attachment 93933
THE RESEARCH AND DEVELOPMENT OF THE IMMERSION WAFER STAGE IS OVER, THE BALL IS IN U-PRECISION NOW, WHEN THEY ARE GOING TO DELIVER THE FULL WORKING STAGE IS ANOTHER ISSUE. I read but i can't find the document because i didn't save it at the time that was going to be this year.

The rumored return of Huawei in 2023 may start heading up over the months. Original rumor came out in like mid-late 2021 along with some speculative GT comments in 2022. 2023 will could be a huge year for the domestic semi industry, Huawei, and the absolute meltdown of cotton boy.

Rettam Stacf · Jul 24, 2022

olalavn said:
hahaha, they only move some low end orders to other countries... but most of those companies are from China to 70%...
1/ Raw materials China holds most.
2/ Techniques for making rare earths
3/ Semiconductor production raw materials China also holds 60-70%
4/ Special gas for chip production...

But what is the advantage of having all those if China is, at least perception wise, not going to leverage them to "return the favor" or those things don't really matter to the US ?

Someone argued earlier that it is a "nuclear option" that can only be used once. But that is not true. China an salami slice too by embargo just one item at a time and for a particular country or region etc. The fact that the US keeps heaping on sanctions after sanction of semiconductor manufacturing equipment means that they do not have any concern that embargoing such items by China has any effect on them.

END of ranting.

tokenanalyst · Jul 24, 2022

The focus on U-Precision is unwarranted when there are other unknown variables, like whatever RSlaser ArFi lasers archived 60w 6Khz and high stability for immersion, there is not damn IPO for that, the only way to know is getting your hand dirty reading research papers and patents applications.

IPO after IPO trying to decipher the same crap.

tokenanalyst · Jul 24, 2022

Rettam Stacf said:
China an salami slice too by embargo just one item at a time and for a particular country or region etc. The fact that the US keeps heaping on sanctions after sanction of semiconductor manufacturing equipment means that they do not have any concern that embargoing such items by China has any effect on them.

Of yes they have some concerns. more concerns than you think. Is just the national security zealots are too blind and stupid to foresee unintended consequences, like they always do. Their unintended goal is to the US become China's supermarket and nothing more.
If they justify their actions because "don't want the PLA to able to make their own chips" then they should read this entire thread and ask themselves if the PLA in the last few years has access to better chip manufacturing tools and software than in the entire history of modern China before Trump.
The Chinese on the contrary think in long term, they know rare earth are nuke that they will only used one, so they will continue to sell rare earths so cheap that the American rare earth industry will never develop.

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FairAndUnbiased · Jul 24, 2022

tokenanalyst said:
Of yes they have some concerns. more concerns than you think. Is just the national security zealots are too blind and stupid to foresee unintended consequences, like they always do. Their unintended goal is to the US become China's supermarket and nothing more.
If they justify their actions because "don't want the PLA to able to make their own chips" then they should read this entire thread and ask themselves if the PLA in the last few years has access to better chip manufacturing tools and software than in the entire history of modern China before Trump.
The Chinese on the contrary think in long term, they know rare earth are nuke that they will only used one, so they will continue to sell rare earths so cheap that the American rare earth industry will never develop.

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in fact, even if US mines the rare earths, the refining capability is in China, and the refining is the value added step, but the greatest cost is in the ore mining. so by trying to bypass China, they've actually made it even more profitable for China to refine the rare earths while they take on the burden of mining it. And recycling is actually even more valuable than original mining, since just like steel, it is much easier to melt down and purify already refined rare earths than to refine it from rock at the ppm level.

Chinese semiconductor industry

tokenanalyst

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(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

Attachments

coolieno99

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by78

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vincent

Grumpy Old Man

hvpc

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(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

FriedButter

Major

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

Rettam Stacf

Junior Member

tokenanalyst

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tokenanalyst

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FairAndUnbiased

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Chinese semiconductor industry

Brigadier

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.​

Attachments

Junior Member

General

Grumpy Old Man

Junior Member

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.​

Major

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.​

Junior Member

Brigadier

Brigadier

Brigadier

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.

(3) Whether the specific team of Tsinghua University is responsible for each project, whether it is led by the actual controller of the company Zhu Yu’s team or a member of the team, and if so, please disclose it with reference to related party transactions.