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Source: China Securities News

Semiconductor Manufacturing International CorporationShenzhen plans to expand production further!

Recently, Shenzhen Pingshan District Investment Promotion Service announced SMIC Shenzhen 12-inch wafer foundry production line supporting plant project selection. According to the announcement, vigorously developing integrated circuit manufacturing is not only a demand for consolidating and enhancing the competitiveness of Shenzhen's integrated circuit industry, but also an important starting point for building a world-class new generation of information technology industry development highland.

According to public information, Semiconductor Manufacturing International Corporation's recent production expansion projects in Beijing, Shanghai and Shenzhen all belong to the company's 12-inch mature process, with an investment equivalent to more than 120 billion yuan. If the project reaches production as expected, Semiconductor Manufacturing International Corporation is expected to fully benefit from the full outbreak of domestic and global demand for 5G, new energy vehicles and smart Internet of things, laying the foundation for the company's long-term growth.

SMIC Shenzhen production expansion project Luodi Pingshan

On October 21, Shenzhen Pingshan District Investment Promotion Service issued a public notice on the selection scheme of the supporting plant project for the 12-inch wafer foundry production line, which is intended to be used by Semiconductor Manufacturing International Corporation Integrated Circuit Manufacturing (Shenzhen) Co., Ltd.

According to the publicity document, the project products are targeted at 12-inch 28nm and above linewidth display driver chips and power management chips. The project will build new facilities such as gas stations and chemical warehouses, which can provide nitrogen, oxygen and other bulk gases, as well as acids and bases, with a production capacity of 40,000 12-inch wafers per month. The total construction area of the initial construction is about 69410 square meters, which is equivalent to the size of 10 football fields.

According to the project information, the 12-inch wafer foundry production line is mainly planned for mass production of 55nm high voltage large screen driver, 0.15 μ m power driver and 40/28nm high voltage large screen driver chip, with display driver, image sensing and power management products as the entry point, reserving the compatibility of other types of products. The enterprise has product technology and independent intellectual property rights, and the product yield is at the advanced level in the industry.

Semiconductor Manufacturing International Corporation continues to increase mature production capacity

According to the semi-annual report 2021, Semiconductor Manufacturing International Corporation currently has six major subsidiaries, including SMIC Shanghai, SMIC Beijing, SMIC Tianjin, SMIC North, SMIC Shenzhen and SMIC South. Among them, the Shanghai factory, Beijing factory, Tianjin factory, Shenzhen factory and Jiangyin factory are under expansion. According to public information, Semiconductor Manufacturing International Corporation's production expansion projects in Beijing, Shanghai and Shenzhen all belong to the company's 12-inch mature process, with an investment equivalent to more than 120 billion yuan.

At the end of July 2020, Semiconductor Manufacturing International Corporation signed the Cooperation Framework Agreement with the Management Committee of Beijing Economic and technological Development Zone, and the two sides set up a joint venture to develop and operate projects focusing on the production of integrated circuits of 28 nm and above. The first phase of the project plans to invest US $7.6 billion and eventually achieve a 12-inch wafer production capacity of about 100000 pieces per month.

In March 2021, Semiconductor Manufacturing International Corporation signed a cooperation framework agreement with the Shenzhen Municipal Government. The two sides intend to carry out project development and operation through SMIC Shenzhen in the form of proposed funding, focusing on the production of integrated circuits of 28 nm and above and the provision of technical services, which are expected to be put into production in 2022. The new investment in the project is estimated at US $2.35 billion.

In September 2021, Semiconductor Manufacturing International Corporation signed a cooperation framework agreement with the Management Committee of the Lingang New area of the Shanghai Free Trade Zone to set up a joint venture in the Lingang Free Trade Zone. The joint venture company will plan to build a 12-inch wafer foundry production line with a capacity of 100000 wafers per month, focusing on integrated circuit wafer foundry and technical services that provide 28 nm and above technology nodes. The project plans to invest about 8.87 billion US dollars.

Guoxin SecuritiesThe research newspaper believes that Semiconductor Manufacturing International Corporation 12-inch mature process has the domestic top, the world's leading mature process platform R & D and mass production capacity. The three projects in Beijing, Shanghai and Shenzhen will bring Semiconductor Manufacturing International Corporation a total of 240000 pieces / month of 12-inch / month process capacity of 28 nm or more, about twice the 12-inch mature process capacity planned by SMIC's existing plant. The company is expected to surpass United Microelectronics Corp in production capacity within five years.

Shenzhen makes great efforts to develop integrated circuit industry

According to the above-mentioned public document, Semiconductor Manufacturing International Corporation's project will greatly supplement the weak links in Shenzhen's integrated circuit manufacturing industry chain and promote the rapid development of Shenzhen's integrated circuit industry.

The cooperation between Shenzhen and Semiconductor Manufacturing International Corporation is not without warning. Since the beginning of Semiconductor Manufacturing International Corporation's listing in Science and Technology Innovation Board, Shenzhen SASAC Shenzhen Venture Capital has become one of its strategic investors. According to Semiconductor Manufacturing International Corporation's semi-annual report in 2021, Shengchuang is one of Semiconductor Manufacturing International Corporation's top 10 shareholders with limited conditions of sale, holding 18.21 million shares.

The chip is formed by the integrated circuit after a series of operations such as design, manufacture, packaging and so on. Among them, Shenzhen is good at "design".

Since 2013, the sales volume of integrated circuit design in Shenzhen has occupied the first place in the country. Public data show that from 2010 to 2019, its market share rose from 16.7% to 35.62%. Sales of integrated circuit designs increased by 10.9% from 9.2 billion yuan to 109.9 billion yuan, with an average annual compound growth rate of 30.75%. It is much higher than the compound growth rate of 21.11% in the national chip design industry in the same period.

At the same time, Shenzhen has also emerged a number of excellent IC design enterprises. In 2019, Shenzhen has 26 IC design enterprises with sales of over 100 million, accounting for 10.9% of the 238 in China.

With the continuous iteration of technology, the state has also put forward higher requirements for the development of the integrated circuit industry. Shenzhen, as one of the important cities of industrial agglomeration, shoulders an important task.

The previous "Shenzhen Action Plan for further promoting the Development of the IC Industry (2019-2023)" pointed out that Shenzhen will expand the scale of the industry. By 2023, the overall sales revenue of the industry will exceed 200 billion yuan, the sales revenue of the design industry will exceed 160 billion yuan, and the sales income of the manufacturing industry and related links will reach 40 billion yuan. Introduce and cultivate 10 backbone enterprises with sales income of more than 2 billion yuan. The energy level of the integrated circuit industry has been significantly improved, the industrial structure has become more reasonable, and has become a new engine for the development of strategic emerging industries.