Chinese semiconductor industry

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tphuang

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In January, the bidding rate of domestic semiconductor equipment reached 74.92%

In recent years, with the vigorous development of the global semiconductor industry, the semiconductor equipment market has grown for three consecutive years. However, as the semiconductor industry enters a down cycle and under the influence of the U.S. export ban on China, the shrinking demand in the semiconductor equipment market in 2023 seems to be a foregone conclusion.

It can be seen from the above that the down cycle of the semiconductor market has gradually spread to the upstream equipment sector. However, unlike the global market, domestic fabs such as SMIC, SMIC, Jinghe Integrated, Hua Hong Semiconductor, Yandong Micro, Shanghai Jita, and Yuexin Semiconductor are still in the expansion cycle and have opened a new A round of large-scale procurement of equipment.

Jiwei.com sorted out the data of the bidding platform and found that the current semiconductor equipment market has picked up. In January 2023, NAURA, China Micro, Shengmei Shanghai, Huahai Qingke, Applied Materials, KLA and other companies won a total of 331 equipment bids, which is close to the total number of bids won in the fourth quarter of 2022 (357 units).

Secondly, since domestic semiconductor equipment is still heavily dependent on imports, the trend of localization of equipment will continue. Based on factors such as supply chain security, equipment cost savings, customization requirements, and localized high-quality after-sales service, domestic semiconductor equipment has become an important choice for domestic fabs. Among the above-mentioned 331 pieces of equipment won by semiconductor equipment manufacturers in January 2023, domestic equipment manufacturers won a total of 248 pieces of equipment, accounting for as high as 74.92%.

Self-developed core components

On the other hand, domestic semiconductor equipment manufacturers also use their own technology to overcome or acquire upstream manufacturers to lay out key component businesses.

In fact, key components have a great impact on the stability, production capacity, and accuracy of semiconductor equipment. Therefore, major international semiconductor equipment manufacturers including ASML, Applied Materials, Advantest, and Teradyne are actively developing their own components, or It is the merger and acquisition of upstream component manufacturers, such as ASML's acquisition of Cymer, Teradyne's acquisition of MiR, AutoGuide, etc.

Domestically, according to incomplete statistics from Jiwei.com, semiconductor equipment manufacturers including Heyan Technology, Jingsheng Electromechanical, Zhichun Technology, and Guangli Technology have all deployed parts and components business.

Heyan Technology said that benefiting from the opportunity of localization of parts and components, the company is committed to diversified development and provides customers with more choices. Already have semiconductor post-processing equipment, dicing equipment, supporting equipment and independent research and development, design, and production capabilities for some parts. Last year, the Suzhou company (Suzhou Heyan Precision Technology Co., Ltd.) was successfully put into production. The parts KIT produced by its factory Fixtures have been introduced into the market in batches, which also marks the company's determination to localize parts and components.

Zhichun Technology also stated on the interactive platform on February 22 that the company has deployed some parts manufacturing business in individual process segments.

Jingsheng Electromechanical pointed out that the company has continuously increased the research and development of new products, successfully developed new business areas such as quartz crucibles, diamond wires, semiconductor precision parts and other core auxiliary materials and consumables, and gradually improved the supporting system of industrial chain products.

Guangli Technology has greatly improved the company's R&D and production capabilities for core components such as air spindles through the construction of precision high-rigidity air spindle research and development and industrialized convertible bond projects.

In addition, mergers and acquisitions of upstream component manufacturers have gradually become a trend in the domestic semiconductor equipment industry. As early as 2020, Wanye Enterprise acquired Compart Systems, a world-leading supplier of components and flow control solutions in the field of gas delivery systems, to deploy its semiconductor parts business.

On February 6, 2023, in order to enhance cost control capabilities and guarantee the supply of core components, Shengmei Shanghai also announced the acquisition of a 20% stake in the largest external supplier NIEBELL.
This is great, although I did not notice the numbers were this high based on those weekly reports. Must be something missing here.

Components manufacturing for Ion implantation, deposition and etching semiconductor manufacturing equipment.

Jilin Huiheng Electronic Technology Co., Ltd. is a source manufacturer specializing in the localization of imported process equipment components in the semiconductor, LED , and optical coating industries. Our company has dozens of imported and domestic precision machine tools, and is equipped with various welding equipment and high-precision testing fixtures. There are top engineers in the industry to further develop and optimize the design of key components, making it easier to disassemble, longer life, lower maintenance costs, and shorter downtime. Our company currently has more than 5,000 types of finalized products, covering wearing parts and consumable.

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The greater the need to disassemble a piece of equipment for maintenance, the more you will learn from it to the point that at some point you will be able to know the inner workings of that tool as well as the designer himself.

The US banning servicing is a nightmare for fabs but could be a blessing for Chinese part manufacturers and repair companies.
This reminds me of the story of China disassembling S-70 Blackhawks in order to be able to service it post-TAM. Got to the point they were able to replace the smallest nuts and bolts.

so I think we can feel at ease that SMSC fabs can keep functioning for the foreseeable future.
 

tphuang

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SSMB isn’t the same technology as LPP. Very different approaches.
I'm just asking about EUVs in general. I know SMEE is not working on it, but maybe he has some insider knowledge of the program progress.
 

tacoburger

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I have my doubts about SSMB EUV. It's already hard enough to work with ASML EUV, it's the size of a truck, needs a team of PHD to operate and service it and needs a cargo plane to transport. Now imagine your EUV is dependent on a particle accelerator with a circumference of more than a hundred meters. Just a single section of that thing fails and your entire fab stops, maintenance work has to be immense.

It's going to be impossible to transport or export. You're going to have to assemble the particle accelerator on site and then build the fab on top of it. You can't assemble the entire thing in one centralized factory and ship it out. It's still going to need most the insanely difficult EUV competents an ultra-high vacuum, nanometre precise mirrors and focusing systems, ultra high precision laser interferometer etc etc. But add an particle accelerator on top of that. The money, maintenance and manpower is going to be immense.

Is the higher power EUV beam and lack of tin droplets going to be worth it?
 

ansy1968

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I have my doubts about SSMB EUV. It's already hard enough to work with ASML EUV, it's the size of a truck, needs a team of PHD to operate and service it and needs a cargo plane to transport. Now imagine your EUV is dependent on a particle accelerator with a circumference of more than a hundred meters. Just a single section of that thing fails and your entire fab stops, maintenance work has to be immense.

It's going to be impossible to transport or export. You're going to have to assemble the particle accelerator on site and then build the fab on top of it. You can't assemble the entire thing in one centralized factory and ship it out. It's still going to need most the insanely difficult EUV competents an ultra-high vacuum, nanometre precise mirrors and focusing systems, ultra high precision laser interferometer etc etc. But add an particle accelerator on top of that. The money, maintenance and manpower is going to be immense.

Is the higher power EUV beam and lack of tin droplets going to be worth it?
BRO Its not meant for export and they have the experience using The Shanghai Synchrotron Radiation Facility (SSRF) so they had a precedent and came out a perfect solution to their needs. I may say the Chinese will covered all bases not only in SSMB but also LPP and DPP as well.
 

latenlazy

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I have my doubts about SSMB EUV. It's already hard enough to work with ASML EUV, it's the size of a truck, needs a team of PHD to operate and service it and needs a cargo plane to transport. Now imagine your EUV is dependent on a particle accelerator with a circumference of more than a hundred meters. Just a single section of that thing fails and your entire fab stops, maintenance work has to be immense.

It's going to be impossible to transport or export. You're going to have to assemble the particle accelerator on site and then build the fab on top of it. You can't assemble the entire thing in one centralized factory and ship it out. It's still going to need most the insanely difficult EUV competents an ultra-high vacuum, nanometre precise mirrors and focusing systems, ultra high precision laser interferometer etc etc. But add an particle accelerator on top of that. The money, maintenance and manpower is going to be immense.

Is the higher power EUV beam and lack of tin droplets going to be worth it?
Lol Synchrotrons are mechanically much simpler than plasma produced light sources. Just because it’s bigger doesn’t mean it’s harder. Also why would China want to export this instrument? The point is to have something for domestic production.

Dealing with things like liquid tin debris and excitation optimization of droplets and maintaining a high vacuum environment and material corrosion of reflective surfaces inside the light accumulator chamber are all much more difficult problems than accelerating electrons in a tube faster and faster with a magnet. The only reason SSMB isn’t already a leading candidate is because it’s a very new method that needs to be validated and it requires infrastructure which might change how fab processes get organized. It’s obviously not a great solution if you want to build a private export business with a product that needs to be compatible with pre-existing facilities in fabs, but if you’re pursuing a public/private model for domestic use those kinds of limitations imposed by business concerns don’t exist anyways.
 
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