Chinese semiconductor industry

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tphuang

tphuang

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In4ser said:
China doesn’t need to ban Micron but discourage purchases. As a condition for government support, China can create a list for preferential suppliers and put Micron on the bottom to only buy from if there are no alternatives. Prioritize domestic companies, then Korean and Japanese with American last. China should also make it a point to negotiate harsh cancellation penalties.

That way, China can say it didn’t ban Micron and if Micron isn’t being purchased, it is because it’s an untrustworthy supplier. If the US retaliates by forcing Koreans to stop selling to China, then the US will get blamed and China gets compensated for breach of contract.
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Good portion of micron revenue comes from devices sold in china by foreign companies like apple. So if you find that this pose national security issues, how do you allow further sales?

Your "punishment" wont discourage dealings with micron all that much. China might as well do nothing.

Stop being so afraid. China has been very cautious all along. It would not have gone through with review if it was not ready for the consequences.
 
In4ser

In4ser

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tphuang said:
Good portion of micron revenue comes from devices sold in china by foreign companies like apple. So if you find that this pose national security issues, how do you allow further sales?

Your "punishment" wont discourage dealings with micron all that much. China might as well do nothing.

Stop being so afraid. China has been very cautious all along. It would not have gone through with review if it was not ready for the consequences.
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Is Micron a threat to national security? I don’t think so, its an irrating thorn like India but China can still do business.

China has been successful because it doesn’t pursue big gestures for quick PR wins unlike India.

So why rush? Time is on China’s side. Don’t fall into to the trap of following on the opponents timetable.

Based upon the threats from the US, South Korea has alternatives for China to buy. This preferential list will push China to buy those SK alternatives over Micron and further South Korean and US tensions. I’m sure China can negotiate something with Apple to exclude Micron. If China still buys Micron regardless so be it but it’s only a matter of time before domestic production is ready and then a ban can be placed.
 
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Overbom

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tphuang said:
Stop being so afraid. China has been very cautious all along. It would not have gone through with review if it was not ready for the consequences.
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The bottom line is China immediately or very quickly (under a year), to be able to replace Micron and S.K companies' memory sales.
That's the bottom line. The downstream domestic suppliers must not be harmed.

Mind you, this is only if we talk about China totally banning Micron. I think its more likely the ban/punishment will be more limited and more targeted. Which in that case, China probably doesn't have to worry about complete memory ban (that's the control escalation-ladder thing I talked about before)

S.K gov reaction to the US throwing them to the ditch is almost irrelevant. The US will make them bend the knee and stop S.Korean memory exports if necessary.
 
tphuang

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SMSC_Fab8_elctricalSystemBid.jpg
Several bids for SMSC Fab8 (aka SN2) have concluded. They've picked the suppliers. Again, it will take them a while longer to actually complete the work. So we probably still need a year before tools get moved in. I anticipate by first half of next year, SN1 will be at full capacity
 
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With a total investment of 2.2 billion yuan, the photomask project of Maite Optoelectronics started in Liangjiang New District, Chongqing.​


According to news from Jiwei.com, on April 24, Chongqing Maite Optoelectronics Photomask Project started construction in Liangjiang New District, Chongqing. The total investment of the project is 2.2 billion yuan, and it is expected to start production next year, and it is planned to start mass production in the fourth quarter of 2024.

Photomasks for display panels are one of the core key tools in the production process of display panels. Chongqing Maite Optoelectronics Co., Ltd. is jointly funded and established by HOYA Co., Ltd. and BOE Group. After the project is put into production, it is expected that the annual production capacity will reach about 2,250 photomask products, and the output value will reach 700 million yuan.

Li Jie, member of the Party Working Committee of Liangjiang New Area and deputy director of the Management Committee, said that the Maite Optoelectronics photomask project, which has been jointly developed and sincerely cooperated by the two leading enterprises, will promote the accelerated upgrading and development of the display panel industry in Liangjiang New Area, and will be of great importance to Chongqing. The display panel industry chain of the city and even the whole country plays the role of "complementing the chain".

In 2022, the electronic information industry in Liangjiang New District will complete an output value of 218.4 billion yuan, accounting for about 30% of Chongqing City. In the next step, Liangjiang New Area will accelerate the high-quality development of the electronics industry, focus on the three major directions of new displays, smart terminals, and integrated circuits, and promote Sichuan and Chongqing to jointly build a world-class advanced electronic information industry cluster.

Chongqing Liangjiang New District official website reported in April that TAG Heuer Co., Ltd. and BOE Group jointly established Chongqing Maite Optoelectronics Co., Ltd. The company is jointly held by Beijing BOE Video Technology Co., Ltd., a wholly-owned subsidiary of BOE, and TAG Heuer Co., Ltd. (Proofreading/Han Xiurong)

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FairAndUnbiased

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tokenanalyst said:

With a total investment of 2.2 billion yuan, the photomask project of Maite Optoelectronics started in Liangjiang New District, Chongqing.​


According to news from Jiwei.com, on April 24, Chongqing Maite Optoelectronics Photomask Project started construction in Liangjiang New District, Chongqing. The total investment of the project is 2.2 billion yuan, and it is expected to start production next year, and it is planned to start mass production in the fourth quarter of 2024.

Photomasks for display panels are one of the core key tools in the production process of display panels. Chongqing Maite Optoelectronics Co., Ltd. is jointly funded and established by HOYA Co., Ltd. and BOE Group. After the project is put into production, it is expected that the annual production capacity will reach about 2,250 photomask products, and the output value will reach 700 million yuan.

Li Jie, member of the Party Working Committee of Liangjiang New Area and deputy director of the Management Committee, said that the Maite Optoelectronics photomask project, which has been jointly developed and sincerely cooperated by the two leading enterprises, will promote the accelerated upgrading and development of the display panel industry in Liangjiang New Area, and will be of great importance to Chongqing. The display panel industry chain of the city and even the whole country plays the role of "complementing the chain".

In 2022, the electronic information industry in Liangjiang New District will complete an output value of 218.4 billion yuan, accounting for about 30% of Chongqing City. In the next step, Liangjiang New Area will accelerate the high-quality development of the electronics industry, focus on the three major directions of new displays, smart terminals, and integrated circuits, and promote Sichuan and Chongqing to jointly build a world-class advanced electronic information industry cluster.

Chongqing Liangjiang New District official website reported in April that TAG Heuer Co., Ltd. and BOE Group jointly established Chongqing Maite Optoelectronics Co., Ltd. The company is jointly held by Beijing BOE Video Technology Co., Ltd., a wholly-owned subsidiary of BOE, and TAG Heuer Co., Ltd. (Proofreading/Han Xiurong)

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At this point for displays, I think the domestic supply chain is almost complete:

1. 365 nm large area photolithography - yes
2. 365 nm resist - yes
3. Large photomask - yes
4. PVD for organics - yes
5. PVD for metals - yes
6. Large area substrate - yes

Only part that could be a problem is the actual OLED molecules which may be bought from UDC. But I wouldn't be surprised if domestic variants came out soon.
 
tphuang

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A little bit about Nexchip. So they are just getting to mass production of 55nm process now with 12-inch wafer despite by being the 3rd largest logic fab in China. in 2020, they had 266k wafer production. 2021 had 571k and 2022 had 1.262 million. So actually quite a bit of 12-inch capacity, but mostly fro 150nm to 90nm
晶合集成主要从事12英寸晶圆代工业务，致力于研发并应用行业先进的工艺，为客户提供多种制程节点、不同工艺平台的晶圆代工服务。目前，在晶圆代工制程节点方面，晶合集成已实现150nm至90nm制程节点的12英寸晶圆代工平台的量产，正在进行55nm制程节点的12英寸晶圆代工平台的风险量产。

2020年度，晶合集成12英寸晶圆代工年产能达约26.62万片；2021年度，其12英寸晶圆代工产能为57.09万片；2022年度，其12英寸晶圆代工产能为126.21万片
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They are looking to raise 9.5B RMB for research into:
CMOS chips (99 and 55nm node)
MCUs chips (55 and 40nm)
40nm logic chip
28nm logic chips and OLED chips

goal is 55nm this year, 40nm in 2024 and 28nm in 2025. As you can see, 28nm is not that easy.
 
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Nexchip is a joint venture of Powerchip from Taiwan (PSMC) with an investment fund in Hefei, China.
Powerchip is one of the top 10 silicon foundries in the world. I think they are the third largest in Taiwan after TSMC and UMC.

From what I understand Nexchip mostly make display driver chips for LCD screens and the like.

Their website, which I linked above, claims they hit 100,000 wafers per month production by the end of 2021.
That is pretty significant, especially since those are 300 mm wafers.

The US and Taiwanese governments have clamped down on Powerchip recently. So quite likely there won't be much more if any tech transfers. So Nexchip will have to develop their own processes and do their own R&D inside China.
 
tphuang

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In4ser said:
Is Micron a threat to national security? I don’t think so, its an irrating thorn like India but China can still do business.

China has been successful because it doesn’t pursue big gestures for quick PR wins unlike India.

So why rush? Time is on China’s side. Don’t fall into to the trap of following on the opponents timetable.

Based upon the threats from the US, South Korea has alternatives for China to buy. This preferential list will push China to buy those SK alternatives over Micron and further South Korean and US tensions.
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Micron revenue is down 50% in its recent quarter. It's in trouble. A couple of yrs of China ban would force them to make massive layoffs and really render them useless, which would give plenty of room for YMTC to grow. It would also be a warning shot, a deterrence, for future sanctions. You sanction us, well, we can sanction back too and cause one of your top firms to crater. People understand this is all part of a broader tech war. You do it five years later and people will just think you are doing it maliciously out of the blue.

This is not about quick PR win. It's about doing what you need to protect the interests of your top firms.

If America tells Samsung/SK that they can't increase their market share, then that would be perfect for YMTC. Can you get a better scenario than for YMTC to go from 7% to 15-20% market share in a couple of years? A weakened
I’m sure China can negotiate something with Apple to exclude Micron. If China still buys Micron regardless so be it but it’s only a matter of time before domestic production is ready and then a ban can be placed.
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This same apple that is already facing pressure from the congress to not crater to China? Take a look at Micron's position. Is there a better time to punish Micron than now? What does it say if you hit Micron with a sanction in 3 years when their misdeeds happened now? If you already started an investigation and concluded that no ban is necessary. How would it look if you institute it 3 years later? That would just make you look a lawless nation.

Overbom said:
The bottom line is China immediately or very quickly (under a year), to be able to replace Micron and S.K companies' memory sales.
That's the bottom line. The downstream domestic suppliers must not be harmed.
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It's rather unreasonable to assume SK would kill their top 2 tech firms at America's request. They may agree to pressure them to not expand and fill in Micron's place (which is Biden admin's request). But to tell these 2 firms to leave China and abandon half of their revenues would kill those 2 companies. Even Korea isn't stupid enough to do that.

As I said, plenty of time for domestic phone makers to stock up. If Xiaomi goes bankrupt, then that's the price you have to pay. Stop worrying about these phone companies.
Overbom said:
Mind you, this is only if we talk about China totally banning Micron. I think its more likely the ban/punishment will be more limited and more targeted. Which in that case, China probably doesn't have to worry about complete memory ban (that's the control escalation-ladder thing I talked about before)
S.K gov reaction to the US throwing them to the ditch is almost irrelevant. The US will make them bend the knee and stop S.Korean memory exports if necessary.
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Again, US gov't is not that powerful. And if they are, let Xiaomi die. Being meek only invites more sanctions.

As long as you have the domestic supply chain to make smartphone makers successful, you will have a success smartphone industry. The previous generation of Chinese smartphone makers were built on weak foundation.
 
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tokenanalyst

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The market share continues to increase. Huahai Qingke’s net profit in 2022 will increase by 153% year-on-year, and it is planned to transfer 10 to 4.9 to send 5 yuan​


Huahai Qingke disclosed its annual report on the evening of April 24. In 2022, it will achieve operating income of 1.649 billion yuan, a year-on-year increase of 104.86%; net profit of 502 million yuan, a year-on-year increase of 152.98%; basic earnings per share of 5.25 yuan; A dividend of 5 yuan (including tax) will be distributed for 10 shares; 4.9 shares are planned to be converted into capital reserves for every 10 shares. At the same time, the company disclosed its first quarterly report. In the first quarter, it achieved operating income of 616 million yuan, a year-on-year increase of 76.87%; net profit of 194 million yuan, a year-on-year increase of 112.49%; basic earnings per share of 1.82 yuan.

At the same time, Huahai Zero2IPO disclosed its financial report for the first quarter of 2023, in which the revenue was 616 million yuan, a year-on-year increase of 76.87%; the net profit attributable to the parent company was 194 million yuan, a year-on-year increase of 112.49%.

Huahai Qingke said that the growth in Q1 performance was mainly due to the fact that the company's CMP (chemical mechanical polishing) product, as one of the key process equipment for the front-end manufacturing of integrated circuits, has achieved multiple batch sales and its market share has continued to increase; at the same time, with the company's CMP The market share of products continues to expand, and the business scale of wafer regeneration, key consumables and maintenance services is gradually increasing.

The company's operating income in 2022 will increase by 104.86% year-on-year to reach 1.649 billion yuan. The company has received more bulk orders from customers, and its market share has continued to increase; at the same time, as the company's CMP product market inventory continues to expand, the business scale of key consumables and maintenance services has gradually increased. During the reporting period, the company's CMP equipment and other integrated circuit equipment products realized operating income of 1.431 billion yuan, accounting for about 87% of the total operating income, and key consumables and maintenance services, wafer regeneration and other businesses realized operating income of 218 million yuan, accounting for about 87% of the total operating income. 13% of total operating income

It is reported that the company's CMP equipment has achieved good results in the fields of logic chips, memory chips, advanced packaging, large silicon wafers, MEMS, MicroLED, SiC and other third-generation semiconductors with advanced product performance, excellent product quality and excellent after-sales service. market reputation.


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