Chinese semiconductor industry

tphuang said:

Looks like SMIC earnings call is going on right now. Some summary of things I've seen

this is already done. Capex is relatively flat from 2022 to 2023

NEV related revenue is increasing with respect to power management, vehicle entertainment system and car control (ECUs?)

In past 22 years, SMIC has produced 60 million 8-inch equivalent wafers with over 100 billion chips.

mobile phone inventory is very high, consumer products have half year of stock? industrial sector has no stock. In auto industry, NEVs have not enough supply. In phone/consumer sector, display drivers have the highest stock, enough for 3 quarters. MCUs have some stock.

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From various laoyaoba articles on SMIC today.
- revenue in smartphone accounted for 27% in 2022, which is a rebound, so smartphone is likely to fully recover sooner. SMIC SMIC should have more diverse product structure with more flash memory chips and MPUs.
- SMIC will not engage in price war with its added capacity. It will forcus on improving products and technologies and more customer cooperation.
- We are seeing not only lower utilization also lower prices compared to 2021/2022. Certain products like dedicated memory chips and automotive CTs have seen price fall by 1/3 vs a year ago.
- US revenues gained because American customers are less volatile, so the decline in this part of revenue is smaller. Chinese customers are more volatile.
- gross margins dropping to 20% in 2023 due to both lower revenues and higher depreciation.
- Total number of employees exceeding 20k, including 10k engineers and 2k full time R&D. Low level of turnover in recent years. Have good success in attracting talent.
- monthly production reached 714k 8-inch equivalent wafer by end of 2022, annual utilization 92%. Capex ended up being $6.35B, less than the projected $6.6Bd
- Capex will stay same in 2023 despite no new factory, because funds will be invested in new structure. Sounds like more money to spend on construction this year than last year and also a lot of mature capacity expansion.
- SMIC Shenzhen has entered production stage.
- SMIC JingCheng was delayed by 1 to 2 quarters due to delay in delivery of bottleneck equipment, but has entered trial production.
- SMIC Lingang’s main structure has been capped
- SMIC Xiqing(Tianjin) start construction
- Growth slowed for SMIC

Edited: including SMIC capacity from past few quarters

This is an article which havok clicked the "like" button. The author appear to be working at SMIC BeiJing Fab

He said that if the US-China conflict on semiconductor can not be solved，domestic equipment manufactures will continue to have good time

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今天和我DJEI出差回来的姐姐一起聊了一下，刚刚从上海那边回来，从设备厂商的角度来看一下整个行业，的确还是不太一样，因为芯片法案的原因，国家和资本对于国产设备产商的青睐一直有增无减，对于国产化现在的确下了很多力气，现在很多FAB还在设备的交货期，她们今年还是过得可以的，但是FAB厂后续有没有需要新机器扩充产线，现在还是一个未知数，但是整个中美冲突不能解决的话，还是有着不错的盼头的。设备厂商实际上分两种，一种是机器只在PPT上，一种是踏踏实实真正在做的，我作为FAB的PIE对于这个的确还是挺新奇的，还是有不少和下周回国PPT造车的贾老板一样的，FAB的机器动辄千万的，的确太诱人，但是对于我们这些小白没有太大的意义，也就听一乐。综合来讲，还是有不少做实事的公司的，但是这个行业的周期的确相当的长，还是需要不短的时间来进行验证。作为从业者，肯定是衷心的希望国内的产业更加的完善，供应链更加的稳定，对于我们来说也有更多的机会。

Today, I chatted with my sister who came back from a business trip to DJEI. I just came back from Shanghai. Looking at the entire industry from the perspective of equipment manufacturers, it is indeed not the same. The favor of manufacturers has been increasing, and a lot of effort has been put into localization. Now many FABs are still on the delivery date of equipment, and they can still live this year, but does the FAB factory need new machines to expand the production line in the future? , is still an unknown, but if the entire Sino-US conflict cannot be resolved, there is still good hope. There are actually two types of equipment manufacturers, one is that the machine is only on the PPT, and the other is that it is actually doing it in a down-to-earth manner. As a PIE of FAB, I am still quite new to this, and there are still many PPTs that I will return to China next week. Just like Boss Jia, who builds cars, FAB's machines cost tens of millions, which is indeed too tempting, but it doesn't make much sense to us noobs, so just listen to it. Generally speaking, there are still many companies that do practical things, but the cycle of this industry is indeed quite long, and it still takes a long time to verify. As a practitioner, I must sincerely hope that the domestic industry will be more perfect, the supply chain will be more stable, and there will be more opportunities for us.

Speaking of supply chain and being resilient, Loongson was boasting about in its own investor Q&A.
Currently all their income comes from within China. The full year report will be out on April 26th

Currently, the control chips it has developed are used for wipers, door & window control. Will expand to electric control chips in the future that require higher safety & reliability.

Loongson-3 chips are currently being used in CNC machines.

Loongson is very proud of developing/controlling its own ISA and core IP. Loongson can achieve improved performance from improving core design and ISA. Does not need to use more advanced process to improve performance (unlikely its competitors).

It is also working on its own GPGPU for rendering and computing acceleration to be unveiled in 2023. This is different from China's other GPU designers who still rely on other IPs. Loongson is into developing everything by itself.

Leadmicro Nano: In 2023, the demand for "localization" of semiconductors will become more urgent.​

Weidao Nano, stock code: 688147) held the first extraordinary general meeting of shareholders in 2023. etc., the proposal to revise the <Articles of Association (Draft)> and handle industrial and commercial change registration, the proposal on daily connected transactions expected in 2023, and many other proposals were deliberated and voted on. Aijiwei participated in the meeting as its institutional shareholder and communicated with Long Wen, Secretary of the Board of Microconductor Nano.

During the period, in response to the development trend of the semiconductor industry in 2023, Microconductor Nano responded: "It is expected that the demand for 'localization' will become more urgent."

In December 2015, Microguide Nano was established. With atomic layer deposition (ALD) technology as the core, it is mainly engaged in the R&D, production and sales of advanced micron-scale and nano-scale thin film deposition equipment. Its business covers integrated circuits, photovoltaics, LEDs, MEMS and other semiconductor-related fields, as well as new energy and flexible In the field of electronics, the main products are semiconductor and pan-semiconductor ALD equipment and technologies for logic chips, memory chips, silicon-based micro-displays and 3D packaging, as well as thin-film equipment and mass production solutions for flexible electronics and new-generation high-efficiency solar cells .

On November 15, 2022, the China Securities Regulatory Commission approved the application for IPO registration on the Sci-Tech Innovation Board of Micro-Guide Nano; on December 23 of the same year, Micro-Guide Nano was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, with an issue price of 24.21 yuan per share and a price-earnings ratio of 412.24 times.

Design technology of microconductor and nanometer in atomic layer deposition reactor, high-capacity vacuum coating technology, process reaction gas control technology of vacuum coating equipment, nano-lamination thin film deposition technology, high-quality thin film manufacturing technology, process equipment energy control technology, based on atomic layer deposition Advanced high-efficiency battery technology and other cutting-edge technology fields continue to build and strengthen technical barriers.

In the field of semiconductors, Microconductor Nano is the first domestic equipment company in China to successfully apply mass-production High-k atomic layer deposition equipment to the front-end production line of 28nm node integrated circuit manufacturing. In addition, it has been applied in other subdivisions of semiconductors and flexible electronics.

As of the end of September 2022, the total number of orders in hand for microconductor and nanometer is 1.975 billion yuan, of which 1.856 billion yuan is in hand for special equipment (ALD equipment accounts for 85.66%), and 115 million yuan is in hand for equipment transformation business.

• YMTC has slashed up to 70 per cent of its orders from Naura Technology, a Chinese maker of production tools for wafer fabs, according to a source
• The cancelled orders come amid tighter US export restrictions on China’s chip industry, as well as a slowdown in the global memory market

Stierlitz said:

• YMTC has slashed up to 70 per cent of its orders from Naura Technology, a Chinese maker of production tools for wafer fabs, according to a source
• The cancelled orders come amid tighter US export restrictions on China’s chip industry, as well as a slowdown in the global memory market

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according to a source familiar with the matter, who declined to be named as he was not authorised to speak with media.
The orders were cancelled over the past four months, which aligns with the October 7 decision by the Biden administration to dramatically tighten export controls on advanced chip making equipment to China.

Stierlitz said:

• YMTC has slashed up to 70 per cent of its orders from Naura Technology, a Chinese maker of production tools for wafer fabs, according to a source
• The cancelled orders come amid tighter US export restrictions on China’s chip industry, as well as a slowdown in the global memory market

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If something is from SCMP or Bloomberg and seem ridiculous, you should probably ignore it and not post on this thread.

Chinese chip startup Saiyang Electronics starts its automotive-grade IC packaging and testing project in Zhejiang Province

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Chinese display driver IC supplier Aplus Semiconductor invests RMB10.05 billion in Sichuan Province

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Who could have guessed? Tel is looking to sell more in china? If i had to guess, tel is a big reason why nothing has been agreed to or announced yet.

tphuang said:

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Who could have guessed? Tel is looking to sell more in china? If i had to guess, tel is a big reason why nothing has been agreed to or announced yet.

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Sir not only with them BUT with ASML as well, @european_guy bro from YT video below with the economic downturn that saw the sales of advance EUVL to Samsung, Intel and TSMC declining will it affect it's bottom line? while that of DUVL is surging! I may say that ASML might stop developing future improvement of HIGH NA EUVL iteration and focus more on advance DUVL like NXT 2150i exclusively for the Chinese market, both of them are here to stay and the restriction cap is a ruse to use as a leverage against the Chinese.

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