Supply chain trends in large Semiconductor industry
Company Trend（December 3）
Denso and Fuji Electric to jointly invest RMB10bn in expanding SiC semiconductor capacity.
Denso and Fuji Electric announced that they would collaborate in the SiC power semiconductor field.
According to the announcement, the two companies have obtained the approval of Semiconductor Supply Guarantee Plan by the Ministry of Economy of Japan, which will grant subsidies for the SiC semiconductor project invested by the two sides. The total investment of the project is up to 211.6bn yen (about RMB10.2bn), and the Japanese government will provide subsidies of 70.5bn yen (about RMB3.4bn) for it.
During this collaboration, Fuji Electric will invest in the production of SiC epitaxial wafers and power semiconductors at its plant in Matsumoto City, Nagano-ken; Denso will invest in SiC wafer manufacturing at its plant in Daian in Mie-ken and also invest in improving SiC epitaxial wafer capacity at its Koda plant in Aichi-ken. The both sides will make use of their product development and production strength to collaborate to expand the efficient, stable SiC power semiconductor supply ability of Japan. According to Japanese media, this investment plan will ensure a capacity of extra 310,000 wafers per year and relevant goods supply will be started in May 2027.
The collaboration between Denso and Fuji Electric indicates that Japan invests a lot in the field of SiC semiconductor field, which is an important trend for the global SiC market. SiC, a type of wide bandgap semiconductor material, has advantages in the high-temperature, high voltage and high frequency applications and is gradually becoming a key material used for such fields as new energy vehicles, 5G communication, and industrial control.
The collaboration will not only enhance Japan’s position in the global SiC supply chain but also affect the landscape of the global SiC market. By expanding the SiC capacity, Denso and Fuji Electric are expected to meet the increasing SiC demands, especially the new energy vehicle field, which is of great significance to push forward the progress of global industrialization of electric vehicles.
In addition, the high subsidies granted by the Japanese government shows its strong support to domestic semiconductor industry, which may encourage more domestic investment and speed up the R&D and industrialization of SiC technology. Due to the impact of the tight global supply chain and geopolitics, the domestic SiC capacity expansion will also improve the resilience and security of the supply chain.
Company Trend（December 5）
HBM4 customized by SK hynix to be upgraded from 5nm to 3nm
Recently, SK hynix, a memory chip giant in South Korea, announced an important technology upgrade plan. According to the media of South Korea, SK hynix will adopt TSMC’s 3nm process node to customize its HBM4 chip, which was originally planned to adopt 5nm process node. This transfer is to meet the needs of American tech giants like Nvidia, and it is expected that it will start shipping goods to Nvidia in H2 2025.
The decision of SK hynix indicates that, compared with its previous 5nm process node, the performance of the new type HBM4 based on 3nm process node will improve 20%-30%. In addition, SK hynix’s standard HBM4 will continue to adopt N12FFC+basic bare chip while the process node of the customized chip will be upgraded from 5nm to 3nm. The upgrade not only improves the performance but also shows the leading position of SK hynix in terms of HBM technology, which further enlarges the gap with its rival Samsung, which plans to apply its 4nm process node in its six generation of HBM (i.e. HBM4).
As the next generation of high bandwidth memory, HBM4 plays a pivotal role in AI and high performance computing. With increasing scale and complexities of AI models, chips need to process more and more massive data sets, resulting in the bottleneck of memory system. With the progress of 3D stacked memory technology, HBM helps narrow the memory performance gap and improve the overall performance of the system.
SK hynix’s technical upgrade is a wise response to meet market demands and competition pressure. With the rapid development of AI and in-depth learning, there are more and more demands for high-performance computing. The development and application of HBM4 will be a key factor to drive the progress of these technologies. SK hynix’s more advanced 3nm process node not only provides higher performance and lower power consumption but also meet the customized solution demands of customers, which will further consolidate its leading position in the global HBM market. The measure of SK hynix will cause a chain-like reaction for the whole industry and push other competitors to speed up their technical upgrade. At the same time, this will also impact the global semiconductor supply chain. Especially in the context of the current global chip shortage, technical upgrade and capacity expansion will become an industrial focus.
Company Trend（December 5）
The wafer plant jointly ventured by VIS and NXP Singapore starts construction, estimated to mass produce in 2027
NXP, a Dutch semiconductor giant, and Vanguard International Semiconductor Corporation (VIS) in Taiwan announced to set up a new 12-inch wafer plant in Singapore, indicating an important collaboration between the two sides in the semiconductor industry. This collaboration is not only to further expand the landscape of the semiconductor industry in Singapore but also means that NXP is looking for a new supply chain solution to meet the needs of the Chinese market.
The joint venture “VisionPower Semiconductor Manufacturing Company” will focus on efficient 12-inch wafer production to meet the needs of from multiple high-tech fields including electric vehicles and telecommunication. VSMC plans to invest about US$7.8bn in the joint venture, which is expected to strengthen the production capacity of NXP in Asia and its global competitiveness.
The 12-inch wafer plant is expected to start mass production in 2027, and its capacity in 2029 will reach 55,000 units of 12-inch wafers per month, which will create about 1,500 jobs. After the first wafer plant starts mass production successfully, VIS and NXP will consider their future business development and evaluate the construction of the 2nd wafer plant.
The construction of the joint venture invested in by VIS and NXP means not only the deepening of the strategic cooperation between them but also an important symbol of the diversification of the global semiconductor supply chain. This measure helps alleviate the global shortage of chips, especially in the context of increasing demand of high performance chips from the fields of automobile and telecommunication.
From the perspective of geopolitics and supply chain, the implementation of the joint venture also reflects the flexibility and resilience of the global semiconductor industry in coping with supply chain risks in a single region. Through building the wafer plant, NXP and VIS can better serve Asian market, especially the Chinese market, and reduce dependence on a single region.
In addition, the project is estimated to provide positive influence for the local economy of Singapore, including creating jobs and promoting the development of high-tech industries. At the same time, this also means that Singapore holds a strategic role in the global semiconductor chain, which will further consolidate its leading position in Asian economy and scientific innovation.
Company Trend（December 4）
InnoScience obtained oversea listing registration approval
The International Cooperation Department of China Securities Regulatory Commission (CSRC) issued an overseas listing registration notice of InnoScience (Suzhou) Technology Holding Co., Ltd. According to the notice, InnoScience plans to issue no more than 106,539,400 overseas listed ordinary shares and will go public on The Stock Exchange of Hong Kong Limited. In addition, 51 shareholders of the company intend to convert 444,228,787 outstanding shares they held into overseas listed shares, which will be circulated on The Stock Exchange of Hong Kong. This move indicates that InnoScience started an important step to seek listing in overseas capital market.
InnoScience, as the world’s first enterprise mass producing 8-inch silicon based GaN wafers, successfully broke the market monopoly by foreign companies in the field of designing and producing GaN power chips. In terms of revenue, InnoScience ranked first among all GaN power semiconductor companies across the world in 2023. The company's products have been widely used in such fields as fast charge of consumer electronics, new energy vehicles, industry engineering, etc. and have won the favor of Xiaomi, OPPO, BYD and other key accounts.
InnoScience’s overseas listing registration will help the company further expand its influence in the global market, especially in the field of GaN power semiconductor field. Through listing, InnoScience can raise more capital used for expanding capacity, product R&D, and expansion of its global distribution network, thus accelerating technical innovation and market expansion. The listing of InnoScience is also part of the internationalization strategy of Chinese semiconductor enterprises. In the context of restructuring of the global semiconductor supply chain, Chinese enterprises can increase exposure through overseas listing to attract more international investors and increase international competitiveness. It is worth noting that although InnoScience is growing rapidly, it faces the challenges such as intense industrial competition and rapid iteration of technology. The company needs to continue to invest in research and development to maintain its technological leadership to cope with the rapid changes of customer needs and new industrial standards.
Domestic News（December 3）
US issues latest restrictions on semiconductor exports to China, and multiple Chinese enterprises gave a response
The Biden administration of the US has issued new restrictions on semiconductor exports to China. The new export controls place 136 Chinese entities on a restricted trade list, including semiconductor production equipment manufacturers, wafer plants and investment organizations in China. The list includes a series of well-known listed companies such as Naura, Piotech, Inc., and Wingtech Technology Co., Ltd. The list has a separate paragraph focusing on Huawei’s important partners including ZETOP Technologies Co., Ltd. , Shenzhen Pensun Technology Co., Ltd., SiCarrier, SwaySure, and SiEn (Qing Dao) Integrated Circuits Co., Ltd.
In addition, the file also added 24 restrictions on semiconductor manufacturing equipment, covering etching, deposition, lithography, ion implanting, annealing, measurement, inspection and cleaning tools. At the same time, it has added restrictions on ECAD, TCAD and other technologies. Moreover, it also enacted new rules on exporting advanced HBM to China, covering American companies and foreign manufacturers affected by the “Long-arm jurisdiction”.
In this regard, Naura responded this morning that the company mainly focused on controllable supply chain and development layout in recent years. At present, the company's 90% revenue comes from the domestic market, with less than 10% of its revenue from overseas market, and the new restrictions are expected to cause slight impact on the company. Empyrean Technology Co., Ltd. said that it is actively taking measures to cope with the risks arising from being included in the “Entity List”. The impact on the company is generally controllable. At present, Empyrean’s operation and financial status are normal and its business are progressing steadily. It will take the development opportunity to accelerate the localization of the EDA tools of the whole process. Skyverse Technology Co., Ltd. said that it had made layout to cope with external situations four or five years ago, mainly covering part manufacturing and sales. At present, the company has achieved independent production of its key parts and its sales mainly faces domestic market. It is estimated that the latest export control will not cause significant impact on the company.
Domestic News（December 3）
CCMC makes technical breakthrough in 12-inch BCD silicon wafer
According to the news of ITS official WeChat account, Hangzhou Semiconductor Wafer Co., Ltd. (CCMC) has made a great technical breakthrough in 12-inch lightly doped BCD silicon wafer, and the yield has reached the leading level in the industry. The product has been verified by customers at home and abroad and has been mass produced.
It is learned that BCD is the key technology of power IC. Combining the technology advantages of analog, digital and power, it has stable performance and excellent electrical parameters, which improves the reliability of chips, reduces electromagnetic interference, and has a smaller chip area. It is widely used in power management, analog data acquisition and power devices. With advanced COP Free and BMD controlled crystal growth technology, and high flatness and cleanliness product processing platform, CCMC's 12-inch lightly doped BCD silicon wafers have excellent performance.
It is learned that BCD(Bipolar-CMOS-DMOS) technology is an advanced monolithic integrated process technology, which combines BJT (bipolar transistor), CMOS (complementary metal oxide semiconductor) and DMOS (double diffused metal oxide semiconductor) transistor technology on a single chip. It was first developed by STMicroelectronics in 1985, which is still the leading BCD process manufacturer in the world.
Domestic News（December 5）
Tianyu Semiconductor makes breakthrough in manufacturing 8-inch SiC wafer and epitaxial applications
Dongguan Tianyu Semiconductor Technology Co., Ltd. has made breakthrough in terms of 8-inch SiC wafer manufacturing technology. The research team successfully prepared 8-inch conductive 4H-SiC substrate wafer by diameter expanding growth method. The average basal plane dislocation (BPD) density is lowered to 251 cm², and the average screw dislocation (TSD) is less than 1 cm²， realizing the preparation of 8-inch conductive 4H-SiC substrate wafer with near “zero TSD” and low BPD density. In terms of epitaxial capacity layout, Tianyu Semiconductor is overcoming key technology and is estimated to put its first 8-in epitaxial production line into operation in 2025, indicating that domestic SiC epitaxial manufacturers are gradually increasing their competitiveness in the global market.
Tianyu Semiconductor has achieved rapid epitaxial growth at a rate of 68.66 μm/h on an 8-inch wafer by using domestic 8-inch epitaxial equipment and development process package. The thickness inhomogeneity of the obtained epitaxial layer is 0.89% and the doping inhomogeneity is 2.05%, which have reached the level of excellent 6-inch epitaxial film and can fully meet the production needs. Compared with the published overseas 8-inch epitaxial results, the thickness and doping inhomogeneity of Tianyu Semiconductor are better than foreign data, while the defect density is only 1/4 of that of foreign data, which shows the superiority of Tianyu Semiconductor in terms of epitaxial quality.
编辑 | 泓明数字营销部
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