“Science and Technology Innovation Board Daily”, December 2 (Reporter Guo Hui) At the third quarter results briefing held by Youyan Silicon today, about the latest price trends in the semiconductor silicon wafer industry, Fang Yongyi, chairman of the company said in response to a question from the “Science and Technology Innovation Board Daily” reporter that due to the influence of the overall semiconductor industry, price competition in the international and domestic markets was fierce, and silicon wafer prices were relatively stable in the third and fourth quarters of 2024.

“The price of silicon wafers mainly depends on market demand and inventory removal. The strategy adopted by the company is to optimize the product structure, reduce costs and increase efficiency to give back to customers. As for the price aspect, it mainly maintains stability, and continues to expand its market share.” Fang Yongyi said so.

Youyan Silicon recently stated in a specific target survey that the company's 8-inch silicon wafer production and sales in the first three quarters reached a record high, and sales of high-quality ultra-low resistance products reached a record high. By optimizing the product structure and improving quality and efficiency, it guaranteed a high production, sales rate and operating rate of silicon wafer products.

Can the hot market continue next year, and can on-hand orders further support next year's growth? There was no positive response from the silicon research side to this issue. Fang Yongyi said that the company had a full operating rate of 8-inch silicon wafers in the first three quarters, and the production and sales rate was high. According to market demand, it will use its advantages to quickly develop new products and continuously reduce costs through technological progress.

According to information, customers of silicon materials used in research silicon etching equipment are mainly distributed in countries such as the United States, Japan, and South Korea. Currently, the company is actively sending samples to domestic customers to further expand the domestic market.

At the same time, Youyan Silicon is currently accelerating resource integration and deepening its influence in the industry through mergers and acquisitions in overseas markets.

On November 1 of this year, Uken Silicon announced that it plans to acquire 70% of the shares of DG Technologies Co., Ltd. (“DGT”) located in Japan by means of a cash payment.

DGT's main business is R&D, production and sales of parts for etching equipment (including silicon parts and quartz parts), and has mature silicon precision processing technology and surface treatment technology. The controlling shareholders of DGT and Uken Silicon are RS Technologies Co., Ltd. Silicon materials for etching equipment produced by Yushan Silicon Research are the main raw materials for DGT to produce etching equipment components. The two sides are upstream and downstream of the industrial chain.

Regarding the latest developments in the acquisition plan, Youken Silicon said at the performance meeting that it has signed an “Stock Acquisition Intent Agreement” with RS Technologies Co., Ltd., and is currently actively carrying out audit, evaluation and due diligence work, and the specific transaction plan is still being verified.

“DGT has a wide range of customer channels in Japan. It is a supplier to Tokyo Electronics, TSMC, Micron, etc. Mergers and acquisitions can effectively reduce the cost and risk of end customer certification and speed up the certification process.” Zhang Guohu, general manager of Youyan Silicon, said that through the merger and acquisition of DG Technologies Co., Ltd., it will help the company accelerate the upgrading and iteration of silicon material manufacturing technology for etching equipment, combine silicon material technology for etching equipment with DG silicon precision processing technology, integrate and upgrade the industry chain from silicon materials to silicon components, raise technical barriers in the industry, and help the company accelerate overseas market expansion. This merger and acquisition is in line with the company's development strategy.

Furthermore, in the domestic market, the semiconductor silicon wafer industry may soon welcome a new heavyweight listed company. On November 29 this year, Xi'an Easway Material Technology Co., Ltd. (hereinafter referred to as “Xi'an Yicai”) was accepted for the Science and Technology Innovation Board IPO. This is the first unprofitable enterprise accepted by the Shanghai Stock Exchange after the “Eight Rules of Science and Technology”.

Regarding whether Xi'an Yicai's future financing and expansion of production will stir up the competitive landscape of the semiconductor silicon wafer industry, Fang Yongyi, chairman of Youyan Silicon, said in response to the “Science and Technology Innovation Board Daily” reporter's question that the main products of Yiswei (Xi'an Yicai) are 12-inch silicon wafers, and the main products of Youyan Silicon are 6- and 8-inch silicon wafers and silicon materials for integrated circuit etching equipment. First, there are differences in business.

Second, “the semiconductor silicon wafer industry will still compete in cost and technology in the future, but there will be no one-size-fits-all situation. Different companies will have competitive advantages in their fields of expertise and jointly promote industry progress under competitive circumstances.” That's what Fang Yongyi said.