Chinese semiconductor industry

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tokenanalyst

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4.0 Multi-dimensional comparison of the technological competitiveness of domestic semiconductor equipment manufacturers​

Over the past 20 years, many excellent domestic semiconductor equipment manufacturers have been accumulated in China. Domestic leading semiconductor equipment manufacturers are the first to enter the market. After more than ten years of accumulation, they currently have abundant orders and have entered the production lines of domestic first-class manufacturers. The customer demand is relatively stable and the short-term development momentum is sufficient. In addition, domestic leading equipment manufacturers insist on high R&D investment, actively introduce and cultivate technical talents, have professional technical teams, have the ability to consolidate long-term competitiveness, and have huge future development potential.

The technical level of semiconductor equipment manufacturers is difficult to measure by a single dimension index. We select the following dimensions to compare the technologies of semiconductor equipment manufacturers:

Dimension 1: Product process coverage compared to equipment manufacturers in mainland China can basically achieve

28nm and beyond downstream applications. Zhongwei's plasma etching equipment has been used in international first-line customers from 65nm to 14nm, 7nm and 5nm and other advanced integrated circuit processing and manufacturing production lines and advanced packaging production lines. The ion implantation platform of Keshitong, a subsidiary of Wanye Enterprise, can cover applications up to 3nm. Beijing Yitang dry degumming equipment below 10nm has entered the production line. Tuojing Technology PECVD can reach the 14nm technology node. According to IC Insights, for <10nm IC production capacity, Taiwan accounts for 63%, South Korea holds the remaining 37%, while mainland China currently concentrates on chip manufacturing above 10nm process, which has the technical conditions to realize the localization of equipment.

Dimension 2: Participation in major national science and technology projects

Major national science and technology projects are major strategic products, key common technologies and major projects completed within a certain time limit through core technological breakthroughs and resource integration in order to achieve national goals. In the field of etching and deposition equipment, NAURA, China Micro and Tuojing Technology have all undertaken the research and development of a number of major national projects, and have accumulated a number of core technologies with independent intellectual property rights. Manufacturers such as Xinyuan Micro, Huahai Qingke, Zhongke Flying Test, Shengmei Shanghai and other manufacturers have respectively undertaken major projects for equipment such as glue coating and development, CMP, testing and copper plating.

Dimension 3: Patent accumulation comparison

Domestic semiconductor equipment manufacturers actively carry out innovation work. After decades of accumulation, they have applied for and obtained a large number of patents. Among them, the number of North Huachuang patents has reached 3,300+. The number of patents also exceeds 1,000. Other domestic leading manufacturers of semiconductor equipment also have accumulated about 200-300 patents.

Dimension 4: Customer Expansion Outside Mainland China

Affected by the Sino-US trade friction, fabs in mainland China actively import domestic equipment to ensure the security of the supply chain, while manufacturers outside the mainland import new suppliers based on commercial factors such as technology and cost, so domestic equipment manufacturers import outside the mainland. The situation of regional customers can be used as an important indicator to measure their technical capabilities. At present, China Micro, Xinyuan Micro, and Tuojing Technology have entered the supply chain system of international leading fabs. Shengmei Shanghai also has the technical ability to supply Hynix and American customers. Beijing Yitang acquired American Semiconductor in 2016. The equipment company Mattson has also entered into the supply chain system of many leading international customers.

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Dimension 5: Comparison of R&D Investment Intensity

Domestic semiconductor equipment manufacturers insist on high R&D investment. From the perspective of the absolute value of R&D investment, NAURA is in an absolute leading position, with an R&D investment of 2.9 billion yuan in 2021, followed by Zhongwei, with a R&D investment of 730 million yuan in 2021. From the perspective of the proportion of R&D investment to revenue, Tuojing Technology has the highest R&D investment, reaching 38% in 2021.

Dimension 6: Core technical team and R&D personnel allocation

Domestic leading manufacturers actively introduce and cultivate high-level talents. Semiconductor equipment is a technology-intensive industry, and high-level technical talents will drive the development of semiconductor equipment manufacturers. As of the end of 2021, NAURA has 2,044 R&D personnel, of which more than 65% have masters and doctorates; 415 R&D personnel in Zhongwei Company have masters and doctorates, and the proportion of masters and doctors is close to 50%; 217 R&D personnel at Xinyuan Microelectronics, and the proportion of masters and doctors is also close to 50%. Each company attaches great importance to the introduction of talents. The core technical team of Zhongwei Company has the experience of working in Applied Materials and Fanlin Semiconductor; The core technicians of the flight test have working experience in Tsinghua University, KLA and the Institute of Microelectronics of the Chinese Academy of Sciences.

Dimension 7: Industry-University-Research Cooperation

Domestic semiconductor equipment companies actively cooperate with well-known universities and research institutes in research and development. NAURA has carried out research and development cooperation with Peking University, Tsinghua University, and the Institute of Microelectronics of the Chinese Academy of Sciences on technologies such as third-generation semiconductors and integrated circuit core equipment control software. Tuojing Technology cooperates with Fudan University on ACHM process development and 3D structure integration. At the same time, it cooperates with upstream suppliers to study the key technology and industrialization of ceramic heating plates for PECVD equipment. Special topic, research related to ALD and PECVD. Huahai Qingke and Zhongke Flying Test cooperated with Tsinghua University and the Institute of Microelectronics of the Chinese Academy of Sciences to carry out related research and development work respectively.

5. Various manufacturers are actively deploying, and the localization of upstream components is expected to accelerate​

Domestic semiconductor equipment manufacturers are actively deploying components to improve the stability of the supply chain. The supply stability of core components may be affected under the current international situation. In recent years, domestic semiconductor manufacturers have been actively implementing supply chain localization strategies and gradually increasing the proportion of local procurement. According to the disclosure, the current micro-etching equipment has been realized. 60% of components are localized, MOCVD achieves 80% localization of components; Huahai Qingke's local raw material procurement ratio reaches about 50%.

Endogenous and epitaxy go hand in hand, and domestic equipment manufacturers accelerate the layout of components. In terms of endogenous products, manufacturers such as Core Source Micro and Huahai Qingke actively carry out upstream component research and development to ensure delivery and supply chain security. In terms of epitaxy, Wanye Enterprise acquired Compart Systems in December 2020 and made it its largest shareholder through indirect shareholding. Compart is a leading supplier of flow control components in the field of gas delivery systems required for equipment; North Huachuang will acquire North China in 2020. GuangTech RF application technology related assets.

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tonyget

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SMIC's software project halted: involving a 12-inch fab, the 100-person team was disbanded because the supplier could not fulfill the demand

Sina Technology exclusively learned that SMIC's new 12-inch wafer fab CIM localization project in Beijing was recently forced to suspend, because the technical contractor of the project was unable to complete SMIC's semiconductor CIM software localization requirements, which eventually led to Project suspended.

At present, the team of hundreds of people responsible for the implementation of the project has all evacuated from the Beijing office of SMIC and returned to the original work place, and many high-level technical personnel responsible for the research and development of the project have begun to look for new job opportunities , this matter has gradually spread in the CIM industrial software circle.

Sina Technology asked a number of industry insiders for confirmation, and many industry insiders confirmed the matter. But as of now, neither SMIC nor Shangyang Software has made public announcements or responses to relevant matters.

The 100-person team has been evacuated, and the project leader of the undertaker will leave

According to Sina Technology, the technical contractor to undertake the localization task of SMIC's Beijing CIM software project is Shangyang Software (Shanghai) Co., Ltd. The company has completed hundreds of millions of C1 and C2 rounds of financing in 2021. Investment institutions include National Integrated Circuit Industry Investment Fund Phase II (National Large Fund), SMIC Juyuan, Pudong Science and Technology Investment, Pudong Science and Technology Innovation, Hubble Capital and Shenzhen Venture Capital, etc.

"Shangyang has invested more than 100 people in SMIC, and set up a research and development center in Beijing for the SMIC project. The person who invested the longest before and after reached one year. But in May and June this year, the economics of China After several rounds of evaluation by the IT department of SMIC, it was finally determined that SMIC’s semiconductor CIM localization needs could not be completed, and the report was sent to SMIC’s senior management.” An insider close to SMIC revealed to Sina Technology.

According to the person, the senior management of SMIC has approved the evaluation report submitted by the IT department, and officially notified the personnel of Yangsoft to withdraw from SMIC and suspend the project in SMIC. "Hundreds of technical implementation personnel of Yangyang Software have left Beijing and returned to their original places of work, and many senior employees have begun to look for new job opportunities outside. Related companies in the industry have received resumes from many Yangyang employees."

A person familiar with the matter revealed exclusively to Sina Technology that among the many people who are about to leave, Xu Mingguang (English name MK), CTO of Yangyang Software, who is in charge of leading the project of Yangyang in SMIC, has submitted a resignation application. And enter the state of vacation, after the end of vacation will leave.

The project started construction in February last year with a total investment of nearly 50 billion

In fact, the cooperation between Shangyang Software and SMIC is not only the case of SMIC Beijing. Previously, Shangyang Software also disclosed the development and construction project of the 8-inch chip production line CIM system in cooperation with SMIC Shaoxing, and claimed to have received a letter of thanks from the customer from the SMIC Shaoxing management team. However, after a successful cooperation case, why was the cooperation of SMIC Beijing unexpectedly suspended?

Sina Technology learned that in the cooperation with SMIC Shaoxing, Yangyang provided an 8-inch chip production line CIM system, and in this cooperation with SMIC Beijing, Yangyang Software needs to provide a 12-inch chip production line CIM. system. From a technical point of view, upgrading from an 8-inch CIM system to a 12-inch system requires a very large technological leap in the middle, and the requirements for stability and reliability are greatly improved. In the manufacturing process of 12-inch wafers, each wafer needs to be transferred between hundreds of equipments. After nearly 1,000 processes, the complexity can be imagined.

In February last year, the construction of the SMIC Beijing 12-inch project started in Beijing, and SMIC and the National Fund jointly invested in the project. The total investment of the project is about 49.7 billion yuan. It will be constructed in two phases. The first phase of the project is scheduled to be completed in 2024, with a construction scale of about 240,000 square meters, including the FAB3P1 production plant and supporting buildings, structures, etc. 100,000 12-inch wafer capacity.

Some people in the semiconductor industry commented that 12-inch is currently the most difficult fab in China to build and realize. Due to the needs of independent control, SMIC may introduce new domestic CIM software suppliers in the future. However, it remains to be seen who will be able to take on this responsibility in the end.

Or the interests of new state-owned fund investors may be damaged

Regarding the construction of SMIC's Beijing 12-inch wafer fab and the suspension of the localization process of CIM software, Sina Technology has called SMIC several times to inquire, but has not received relevant responses as of press time. A person familiar with the matter revealed to Sina Technology that although SMIC has terminated the cooperation with Yangyang Software at present, it has not made any public announcement on the matter, the purpose is to allow time for the rectification of Yangyang Software - "It will give Yangyang a 6-month period. time to complete the next round of financing.”

However, this means that if the rectification of the upside is not thorough, it could cause huge losses for new investors. "New state-owned fund investors will not necessarily do deep due diligence, which means that their interests will be harmed." The source further revealed.

Besides SMIC Beijing, at present, SMIC also has two 12-inch fabs under construction in Shanghai Lingang Trade Zone and Shenzhen. Among them, the 12-inch wafer fab in Shenzhen is expected to be put into use in 2022, with a monthly production capacity of 40,000 wafers.

Regarding the forced suspension of the localization of CIM industrial software in SMIC's Beijing 12-inch wafer fab, some industry insiders sighed, "After all, the development of industrial software is too difficult to do, and the country has just started." However, the person also further pointed out that, "Although there are indeed problems with the solutions of some manufacturers, there are still many excellent domestic industrial software manufacturers in the pan-semiconductor industry, and the market can still have confidence in the domestic CIM solutions."
 

tokenanalyst

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SMIC's software project halted: involving a 12-inch fab, the 100-person team was disbanded because the supplier could not fulfill the demand

Sina Technology exclusively learned that SMIC's new 12-inch wafer fab CIM localization project in Beijing was recently forced to suspend, because the technical contractor of the project was unable to complete SMIC's semiconductor CIM software localization requirements, which eventually led to Project suspended.

At present, the team of hundreds of people responsible for the implementation of the project has all evacuated from the Beijing office of SMIC and returned to the original work place, and many high-level technical personnel responsible for the research and development of the project have begun to look for new job opportunities , this matter has gradually spread in the CIM industrial software circle.

Sina Technology asked a number of industry insiders for confirmation, and many industry insiders confirmed the matter. But as of now, neither SMIC nor Shangyang Software has made public announcements or responses to relevant matters.

The 100-person team has been evacuated, and the project leader of the undertaker will leave

According to Sina Technology, the technical contractor to undertake the localization task of SMIC's Beijing CIM software project is Shangyang Software (Shanghai) Co., Ltd. The company has completed hundreds of millions of C1 and C2 rounds of financing in 2021. Investment institutions include National Integrated Circuit Industry Investment Fund Phase II (National Large Fund), SMIC Juyuan, Pudong Science and Technology Investment, Pudong Science and Technology Innovation, Hubble Capital and Shenzhen Venture Capital, etc.

"Shangyang has invested more than 100 people in SMIC, and set up a research and development center in Beijing for the SMIC project. The person who invested the longest before and after reached one year. But in May and June this year, the economics of China After several rounds of evaluation by the IT department of SMIC, it was finally determined that SMIC’s semiconductor CIM localization needs could not be completed, and the report was sent to SMIC’s senior management.” An insider close to SMIC revealed to Sina Technology.

According to the person, the senior management of SMIC has approved the evaluation report submitted by the IT department, and officially notified the personnel of Yangsoft to withdraw from SMIC and suspend the project in SMIC. "Hundreds of technical implementation personnel of Yangyang Software have left Beijing and returned to their original places of work, and many senior employees have begun to look for new job opportunities outside. Related companies in the industry have received resumes from many Yangyang employees."

A person familiar with the matter revealed exclusively to Sina Technology that among the many people who are about to leave, Xu Mingguang (English name MK), CTO of Yangyang Software, who is in charge of leading the project of Yangyang in SMIC, has submitted a resignation application. And enter the state of vacation, after the end of vacation will leave.

The project started construction in February last year with a total investment of nearly 50 billion

In fact, the cooperation between Shangyang Software and SMIC is not only the case of SMIC Beijing. Previously, Shangyang Software also disclosed the development and construction project of the 8-inch chip production line CIM system in cooperation with SMIC Shaoxing, and claimed to have received a letter of thanks from the customer from the SMIC Shaoxing management team. However, after a successful cooperation case, why was the cooperation of SMIC Beijing unexpectedly suspended?

Sina Technology learned that in the cooperation with SMIC Shaoxing, Yangyang provided an 8-inch chip production line CIM system, and in this cooperation with SMIC Beijing, Yangyang Software needs to provide a 12-inch chip production line CIM. system. From a technical point of view, upgrading from an 8-inch CIM system to a 12-inch system requires a very large technological leap in the middle, and the requirements for stability and reliability are greatly improved. In the manufacturing process of 12-inch wafers, each wafer needs to be transferred between hundreds of equipments. After nearly 1,000 processes, the complexity can be imagined.

In February last year, the construction of the SMIC Beijing 12-inch project started in Beijing, and SMIC and the National Fund jointly invested in the project. The total investment of the project is about 49.7 billion yuan. It will be constructed in two phases. The first phase of the project is scheduled to be completed in 2024, with a construction scale of about 240,000 square meters, including the FAB3P1 production plant and supporting buildings, structures, etc. 100,000 12-inch wafer capacity.

Some people in the semiconductor industry commented that 12-inch is currently the most difficult fab in China to build and realize. Due to the needs of independent control, SMIC may introduce new domestic CIM software suppliers in the future. However, it remains to be seen who will be able to take on this responsibility in the end.

Or the interests of new state-owned fund investors may be damaged

Regarding the construction of SMIC's Beijing 12-inch wafer fab and the suspension of the localization process of CIM software, Sina Technology has called SMIC several times to inquire, but has not received relevant responses as of press time. A person familiar with the matter revealed to Sina Technology that although SMIC has terminated the cooperation with Yangyang Software at present, it has not made any public announcement on the matter, the purpose is to allow time for the rectification of Yangyang Software - "It will give Yangyang a 6-month period. time to complete the next round of financing.”

However, this means that if the rectification of the upside is not thorough, it could cause huge losses for new investors. "New state-owned fund investors will not necessarily do deep due diligence, which means that their interests will be harmed." The source further revealed.

Besides SMIC Beijing, at present, SMIC also has two 12-inch fabs under construction in Shanghai Lingang Trade Zone and Shenzhen. Among them, the 12-inch wafer fab in Shenzhen is expected to be put into use in 2022, with a monthly production capacity of 40,000 wafers.

Regarding the forced suspension of the localization of CIM industrial software in SMIC's Beijing 12-inch wafer fab, some industry insiders sighed, "After all, the development of industrial software is too difficult to do, and the country has just started." However, the person also further pointed out that, "Although there are indeed problems with the solutions of some manufacturers, there are still many excellent domestic industrial software manufacturers in the pan-semiconductor industry, and the market can still have confidence in the domestic CIM solutions."
Looks like "localization" is the new sales mantra in China and I don't blame them with the pressure coming from the US. Also looks like they got the system working with a 8" fab so more job needs to be done to upgrade to 12".
 

PopularScience

Junior Member
Registered Member
You are correct. I think some on this thread has been mis-informed about how bad Japan or US capability is while exaggerating SMIC's capability just a bit.

Using the exact same standard we use to declare SMIC has 7nm capability (technical capability, yield level, and output capacity) then Intel has 7nm capability for a few years already.

And as of this year, Intel has already shipped approximately 90K 7nm wafers. Below is a statement from Intel 2002 Q2 financial result:
"▪ Intel made significant progress during the quarter on the ramp of Intel 7, now shipping in aggregate over 35 million units. The company expects Intel 4 to be ready for volume production in the second half of this year and is at or ahead of schedule for Intel 3, 20A and 18A."

SMIC is in 7nm risk production but with very limited capacity. I'm hoping, in a few weeks, to hear good news from SMIC's Q2 financial result if it had improved to volume production level capability. But SMIC is not ahead of Intel like some on this thread tried to claim.
Zhaoxin, Phytium and Hygon desktop CPU will be manufactured by SMIC N+1. You will hear the news in next few months.
 

PopularScience

Junior Member
Registered Member
Every Chinese semiconductor-related company worth its salt is growing 2x annually.
By 2023/24 most (if not all) of those companies should have sufficient operating income and profit to leverage in order to drastically increase their R&D and growth projects.

So, the best for IC developments have still not arrived. When you see companies with >$1bn annual sales that's when the real fun begins
yes. 1 billion revenue enough to employ 1000 engineers.
 
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