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2019

01/14

China has strong demand for silicon wafers, but local suppliers have not yet weathered

SEMI International Semiconductor Industry Association said that China's semiconductor industry development will drive strong demand for materials such as semiconductor silicon wafers. It is estimated that the compound annual growth rate will reach 12% from 2015 to 2020, but local supplier technology is not yet mature. In particular, the large-size part is still the main supplier of Taiwan's Global Wafer, Hejing and Japan's Sumco.

SEMI announced "2018 China Semiconductor Silicon Wafer Outlook" report that China is planning to build a new wafer from 2017 to 2020, driven by its determination to build a strong and self-sufficient semiconductor supply chain. The number of plants in the world is the highest, and no matter whether Chinese or foreign companies have plans to build new foundry or memory factories in China, the overall fab capacity is accelerating.

SEMI expects that by 2020, the installed capacity of fabs in China will reach 4 million pieces per month, 8 billion wafers, and the compound annual growth rate is 12% compared with 2.3 million in 2015. The growth rate is much higher. All other areas.

Mainland China has always been focused on enriching semiconductor packaging. In recent years, it has shifted its development focus to the predecessor process and some key materials markets. The surge in fab investment in 2018 has enabled mainland China to surpass Taiwan and become the world's second largest capital equipment market. Currently only second to South Korea.

 However, the growth of China's semiconductor manufacturing industry is about to face a strong headwind, the biggest challenge of which is the tight supply of silicon wafers in the past two years. Because silicon wafers are oligopolistic, the top five silicon wafer manufacturers have a total revenue of more than 90%, and these manufacturers are in short supply due to strict control of global production. In response to this phenomenon, the central and local governments in mainland China have made the development of the domestic silicon wafer supply chain a top priority, and the gold aids a number of silicon wafer construction plans. 

According to the "2018 China Semiconductor Silicon Wafer Outlook" report, many semiconductor suppliers in mainland China have the ability to provide wafer products below 6 inches, and strong domestic demand and state subsidy policies have driven 8 and 12 semiconductor manufacturing industries. Progress, some Chinese mainland suppliers have even reached key milestones in large-scale manufacturing.

However, these new suppliers will take several years to reach the capacity and yield levels required by the large silicon wafer market. According to the plan announced by the industry, the total production capacity of 8 吋 wafers in mainland China will reach 1.3 million pieces per month before the end of 2020, which may cause a slight oversupply in the market. The other 12 吋 wafer production is estimated to be 750,000 per month. sheet.

 Chinese equipment suppliers, especially furnace equipment suppliers, continue to invest in the development of 12-inch wafer fabrication equipment; Chinese equipment suppliers have also developed most of the tools needed for wafer fabrication, in addition to inspection equipment. 

Although China's silicon wafer suppliers are still lagging behind their international peers in manufacturing capacity, China's semiconductor manufacturing ecosystem is maturing and its integration will gradually increase. The overall industry's sustainable development trend will remain unchanged. 

However, the International Semiconductor Industry Association (SEMI) estimates that China's overall 8-inch silicon wafer supply capacity will reach 1.3 million pieces per month by the end of 2020, which may cause oversupply in the market.