Chinese semiconductor thread II

tokenanalyst

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Huahai Qingke's net profit in the third quarter was 288 million yuan, up 51.7% year-on-year​


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Huahai Qingke, a domestic CMP (chemical mechanical polishing) semiconductor equipment supplier, announced its third quarter report for 2024. The financial report shows that Huahai Qingke achieved operating income of 2.452 billion yuan in the first three quarters, a year-on-year increase of 33.2%; net profit attributable to the parent company was 721 million yuan, a year-on-year increase of 27.8%; net profit attributable to the parent company after deducting non-recurring items was 615 million yuan, a year-on-year increase of 33.8%; net operating cash flow was 876 million yuan, a year-on-year increase of 136.1%.

In the third quarter of this year, Huahai Qingke achieved revenue of 955 million yuan, a year-on-year increase of 57.6%; net profit attributable to the parent company was 288 million yuan, a year-on-year increase of 51.7%; net profit attributable to the parent company after deducting non-recurring items was 246 million yuan, a year-on-year increase of 62.4%. As of the end of the third quarter, the company's total assets were 10.938 billion yuan, an increase of 20.0% from the end of the previous year; net assets attributable to the parent company were 6.165 billion yuan, an increase of 11.7% from the end of the previous year.

Huahai Qingke said that the revenue growth was mainly due to the company's active grasp of the market opportunities brought about by the demand of the integrated circuit industry, and continued to increase R&D investment and production capacity construction, which enhanced the company's core competitiveness. The company's CMP products, as one of the key process equipment for front-end manufacturing of integrated circuits, have gained more customers and increased market share. As the market share of the company's CMP products continues to expand, the scale of key consumables and maintenance services has gradually increased, and the revenue from wafer regeneration and wet equipment has gradually increased, the company's operating income has increased compared with the same period.

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latenlazy

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from earlier this year


Krf was being sold, but Arf was still in validation

this seems like a problem. Not sure if when this will change. They are certainly not the only supplier of photoresists, but China needs as many Arf photoresist suppliers are possible.
“Validation” doesn’t mean not in use for production. It just means that you can’t make broad marketing claims that customers can take your word for. The point of validation (different from verification) is collecting data in the hands of some customers as proof of performance to future buyers. You are “validating” that your product works.
 

gelgoog

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Isn't Loongson also on the US entity list and restricted from accessing the most advanced nodes at TSMC?
The same thing applies to them as to Intel using TSMC. If Loongson fab at SMIC HiSilicon will already have debugged the process with their smartphone SoCs.

182 semiconductor unicorns are receiving up to 2 million in funding in Suzhou.
Massive. I assume this is fabless chip design firms with that amount of money.
A zillion mushroom designs to fill the newly built Chinese fab capacity once it comes online.

GWM Successfully Lights Up Automotive-Grade MCU Chip
  • Zijing M100 (body application): air conditioning control module, headlight control module, air compressor controller, wireless charging module, and head-up display
  • Zijing M200 (power, chassis application): electronic stability program and electric power steering
  • Zijing M300 (power, chassis and domain control application): electronic stability program, electric power steering, integrated brake control, and body control module
  • Zijing S300: Central gateway
According to the news they booted the Zijing M100 chip. But it still needs to be certified. No news about the other chips. But a massive step forward to be sure. Especially because it uses RISC-V CPU architecture and does not need to pay royalties to ARM. Hopefully other Chinese car makers will follow suit.

from earlier this year
Krf was being sold, but Arf was still in validation

this seems like a problem. Not sure if when this will change. They are certainly not the only supplier of photoresists, but China needs as many Arf photoresist suppliers are possible.
Photoresist is one of those chemicals that fabs are VERY careful about because keeping that Critical Dimension and edge roughness in check is absolutely necessary for good yields. But there also the issue that Chinese companies may be sleeping in their laurels and not feeling a sense of urgency because most of China PR supply is coming from Japan who isn't YET imposing too much restriction on the chemical. My guess is that with the exception of SMIC they probably are not doing enough effort to collaborate with Chinese PR companies to accelerate the domestic substitution of this chemical maybe thinking that Japan will not impose too much export controls.
The problem is not just the number of suppliers, but more that their capacity to manufacture said photoresist is infinitesimal. And if they think that Japan won't stop the supply of photoresist, they have another thing coming. Remember what Japan did to South Korea some years ago when they cut supply of rare gases to their electronic industry.
 

tphuang

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“Validation” doesn’t mean not in use for production. It just means that you can’t make broad marketing claims that customers can take your word for. The point of validation (different from verification) is collecting data in the hands of some customers as proof of performance to future buyers. You are “validating” that your product works.
Well I think in this case even if it’s used in production, it’s probably not a meaningful capacity. Investor question is basically trying to see if this produces meaningful revenue and I don’t get the sense that it is.
 

tokenanalyst

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Innoda joins hands with Tsinghua University to promote the development of domestic EDA​

According to the official microblog of Innova, Innova and Tsinghua University have recently joined hands to jointly promote the deep integration of industry, academia and research. Regarding the topic of low-power design of integrated circuits, the Innova team conducted special lectures and in-depth exchanges with teachers and students in the classroom of the School of Integrated Circuits of Tsinghua University.
As a newcomer in the domestic EDA field, Innoda continues to invest a lot of energy in research and development, successfully launched a number of self-developed EDA tools, and worked with users to polish a number of mature tools, forming a systematic and comprehensive methodology. At the same time, Innoda attaches great importance to talent training and actively cultivates local EDA talents. This school-enterprise cooperation aims to allow students to have a deep understanding of the latest integrated circuit design technology and industry development trends, and to provide more fresh blood for the local EDA industry.
In this joint course, the Innoda team gave an in-depth and easy-to-understand explanation of low-power design technology. The course starts with the theoretical basis of digital circuit power consumption and gradually goes into the methodology and practical operation of low-power design.
The teaching and research staff of the School of Integrated Circuits of Tsinghua University expressed satisfaction and recognition for the application of Innoda's related low-power products in integrated circuit design. Professor Zhang Chun of the Institute of Integrated Circuit Design said: "Innoda's technical strength in the field of EDA is impressive. This lecture provides a rare learning opportunity for teachers and students of our school. The course content is rich and practical, with both theoretical depth and practical guidance. We look forward to more cooperation with Innoda in the future to jointly promote the development of domestic EDA."

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tokenanalyst

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Cambrian achieved revenue of 121 million yuan in Q3, a year-on-year increase of 284.59%​


Cambrian disclosed its third-quarter report for 2024. The company's operating income in the first three quarters was 185 million yuan, a year-on-year increase of 27.09%; its net profit loss was 724 million yuan; its operating income in the third quarter was 121 million yuan, a year-on-year increase of 284.59%; and its net profit loss was 194 million yuan.

Regarding the reasons for the growth in operating income, Cambrian stated that it was mainly due to the company's continued market expansion, which led to an increase in operating income during the reporting period.

In the first three quarters, Cambrian invested 659 million yuan in R&D, a year-on-year decrease of 8.13%. The proportion of R&D investment to operating income was 355.65%, a decrease of 136.36 percentage points from the same period last year.
Cambrian stated that the change in the proportion of R&D was due to the increase in operating income in this period compared with the same period last year on the one hand; on the other hand, due to the company's adjustment of its strategy and the gradual suspension of some R&D projects with lower expected gross profit margins, as of the end of the reporting period, R&D expenses decreased compared with the same period last year.

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latenlazy

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Well I think in this case even if it’s used in production, it’s probably not a meaningful capacity. Investor question is basically trying to see if this produces meaningful revenue and I don’t get the sense that it is.
Yes I know. Just clarifying what the term means.
 

GulfLander

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Via google translate: "A former Samsung employee was arrested by Chinese police on suspicion of leaking Changxin Storage-related information to South Korea!"
"According to Chosun Ilbo, KCNA and other media reports, the South Korean Embassy in China said on October 28 that a 50-year-old South Korean man named A was detained by Chinese police in December last year on suspicion of "leaking Chinese semiconductor information to South Korea" on the charge of "espionage." This is the first case of a South Korean being arrested under the revised Anti-Espionage Law since it came into effect in July last year."
"

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According to Chosun Ilbo, KCNA and other media reports, the South Korean Embassy in China said on October 28 that a 50-year-old South Korean man named A was detained by Chinese police in December last year on suspicion of "leaking Chinese semiconductor information to South Korea" on the charge of "espionage." This is the first case of a South Korean being arrested under the revised Anti-Espionage Law since it came into effect in July last year.
According to the report, A currently lives in Hefei, Anhui Province, works at a local semiconductor company, and lives with his wife and two daughters. He worked as an ion implantation technician at Samsung Electronics' semiconductor department for more than 20 years. He moved to China in 2016 and joined China's largest memory chip manufacturer Changxin Memory Technologies (CXMT), when Changxin Memory Technologies first recruited 10 Korean semiconductor professionals. After leaving Changxin Memory Technologies, he worked at two other Chinese semiconductor companies."
"On December 18, 2023, investigators from the Hefei Municipal State Security Bureau arrested Mr. A on charges of “ espionage ” and interrogated him in isolation at a local hotel for more than five months before being transferred to detention by the procuratorate in May 2024. He has been held in a detention center in Hefei since May 26 and is expected to stand trial in November 2024."
"The Hefei Municipal National Security Bureau suspected that A leaked information related to Changxin Storage's semiconductors to South Korea while working at Changxin Storage. A insisted that he had not been exposed to any core semiconductor technology in China.
According to the information, China's newly revised "Counter-Espionage Law" came into effect in July 2023. The revised "Counter-Espionage Law" expanded the scope of espionage activities from "stealing state secrets and information" to include provisions for the transfer of any documents, data, materials and items related to "national security and interests", even if they are not state secrets."
"If A is sentenced to prison in a subsequent trial, he would become the first South Korean to be punished under China's Counterespionage Law. No South Korean has been convicted under the law since it was first enacted in 2014. However, trials for espionage crimes in China usually take several years, and it is not uncommon for specific sentences to be 3-10 years or more."
"An official from the South Korean Embassy in China said, "We have been providing consular assistance to Mr. A and his family since we learned of his detention in January this year."
Chinese Foreign Ministry spokesman Lin Jian responded at a regular press conference on October 29 that a South Korean citizen was arrested by relevant Chinese agencies on suspicion of "espionage". The relevant content has been reported to the South Korean Embassy in China through consular notification, and necessary work assistance has been provided to embassy staff."
"Lin Jian stressed that as a country ruled by law, China investigates and punishes illegal and criminal activities in accordance with the law, while also safeguarding the legal rights of the parties involved.
It is worth noting that according to a report by South Korean media in December 2023, the South Korean Prosecutor's Office arrested two former Samsung Electronics employees who returned to South Korea from China on suspicion of violating South Korea's "Prevention and Protection of Industrial Technology Leakage Act", accusing them of leaking Samsung's 16nm DRAM technology secrets to Chinese manufacturers. In another case, Cui, a former executive of Samsung and SK Hynix, was arrested on suspicion of trying to use stolen Samsung DRAM technology to build a factory in China."
"Lee Jae-min, a trade expert at Seoul National University, said: "Competition between China and South Korea in the chip sector is intensifying. Although South Korean companies such as Samsung and SK Hynix still maintain a technological advantage over China in advanced memory chips, the gap is narrowing. We may see more such industrial espionage cases involving the two countries, especially in the high-tech field, as they both regard semiconductors as a key industry for national security.""

is this news real???

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huemens

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GF aims to revitalize foundry business in China with team expansion planned for 2025​

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GlobalFoundries (GF) is looking to revitalize its operations in China. K.C. Ang, who became GF's president for Asia and chairman for China earlier this year, recently said at an annual technology summit in Shanghai that the company has boosted its Chinese team size by 50% and plans to expand it
 
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