Chinese semiconductor industry
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oh, I didn't mean for it to come across that way. Just saying that this is a tough market for fabs.@tphuang, you are too tough on them. They are getting good gross margin of 32% and net profit of 22.3% and operating at >103% of wafer capacity. They have highest utilization in the foundry segment and more profitable than SMIC. Considering the market condition, I think this is good performance.
This is the expansion is for HuaHong Fab7 in Wuxi. This should be for the first fab in Wuxi, not the second fab. Fab7 currently at 65K wpm and merely competing the original plan ramp to 95K wpm.
For more detailed info on Huahong’s 1Q23 result, this is the actual presentation material directly from HuaHong:
Their utilization is definitely quite astonishing at this time.
One question though, I thought they said they were at 65k at end of last year and expected to reach 95k by Q2. Now, it sounds like they are taking all year to do it. Do you know anything about that?
ok. my bad for misunderstanding.
I know, huh! It's a pleasant surprise when everyone is at 70%ish utilization and HH is above 100% UT.
hmmm, interesting, where did you get the info that they will have 95K wpm by 23Q2? In my record, I wasn't expect Fab7 to have 95K capacity until early 2024. I think Fab7 are still taking delivery of equipment. Then it will take awhile longer before they release these equipment and make the additional capacity official.
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Key words: produced in six months.
Semiconductor core consumables and intelligent equipment projects signed Pinghu
According to Pinghu Xindai news, on May 9, the 2023 Pinghu City Industrial Chain High-Quality Development Signing Conference was held. At this conference, 3 industrial projects and 1 venture capital fund project were signed, mainly covering industries such as semiconductors, new materials, and smart equipment. The projects include semiconductor core consumables and smart equipment projects, Haolan Technology Venture Capital Fund, etc. .
Among them, the semiconductor core consumables and intelligent equipment project is invested and constructed by Shenzhen Sister Technology Co., Ltd., with a planned total investment of 100 million yuan, mainly engaged in the research and development, production and sales of semiconductor core consumables and intelligent equipment. After the project is put into operation, it is expected to realize an output value of more than 150 million yuan.
According to the official website, Cister was established in 2015, mainly engaged in dicing machine blades, and can customize the production of wafer dicing knives, wafer cutting knives, scribing knives, silicon wafer cutting, electroplating knives, resin knives, and metal knives.
Haolan Industrial Research Technology Venture Capital Fund was jointly initiated and established by Shanghai Micro Technology Industry Research Institute and the park, with a fund size of 200 million yuan. In the future, it will focus on investment and investment in emerging fields and industries such as integrated circuits, automotive electronics, and smart devices.
Price war?
Probably not. Huahong’s gross margin is still pretty high. You’d expect the margin to be lower if they are in a price war. Their average price per wafer seems to still be trending up.
I did hear awhile time ago that HH has bulk of government’s business on ID chips and also domestic credit card/debit card chip business. my take away is their business from these sources is quite stable and that SMIC is more engaged in consumer market. Perhaps this is why HH is not as impacted by weakness in the consumer sectors. But this is just my speculation.
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I tried checking my speculation and looked up their quarterly presentation, embeddedNVM would be where chip on smart cards would be bucketed. eNVM is a big chunk of HH’s business and there’s a big Q/Q uptick. So maybe the speculation could be not far from the truth ??
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are IGBTs and MCUs both in discrete? I'm under the impression they have a lot of orders from NEVs, charging stations & renewable stuff
That's just what I kept thinking I read in their various earnings calls from last year, that they were at 65k at end of last year and was going to grow to 95% by end of Q2. I always thought that really fast. Which is why I couldn't figure out why it took until 4 months ago before they announced the second Wuxi fab. It makes much more sense now if they are going to take until first half of 2024 to reach 95k.
quite a bit step for them to go to 40nm nodes.
IGBT would be under discrete.
MCU would be under logic. But some MCU do come with embedded memory, which I'd assume this combo would be bucketed under eNVM as well.
Jingce Electronics (300567.SZ): At present, film thickness equipment, OCD equipment, and electron beam equipment have obtained batch orders from many customers
The company stated At present, the company has obtained batch orders for film thickness equipment, OCD equipment, and electron beam equipment from many customers. Semiconductor silicon wafer stress measurement equipment has also obtained customer orders and completed delivery. Bright field optical defect detection equipment has obtained breakthrough orders, and Completed the delivery of the first set; the rest of the reserved products are currently in the process of research and development, certification and expansion.
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