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Muffled and made a fortune! He is the king of the semiconductor industry!

This article is from: China Semiconductor Forum

How much silicon in Silicon Valley? If we are talking about ultra-pure single-crystal silicon, a high-end material that promotes the digital revolution, there is not much in Silicon Valley.

      Let's look at a bullish price increase news first:

      On November 13, Shin-Etsu Chemical Group announced that it will increase the price of all its silicone products globally! ! !

      Price range: Global, all Shin-Etsu silicone products

      Price increase rate: 10% - 20%

      Effective time: January 2018

      Shin-Etsu said that the price increase was mainly due to the increase in the price of silicon, which is the main raw material for silicones. In addition, the energy costs and transportation costs of silicone production are also increasing.

      It is for these reasons that Shin-Etsu decided to increase the price of silicone products!


This price increase has no room for negotiation because Shin-Etsu Chemical is the largest supplier of global silicone products. In fact, the vast majority of semiconductor silicon in the world today actually comes from Shin-Etsu.

      Shin-Etsu Chemical Co., Ltd. of Tokyo is the world's leading supplier of semiconductor silicon, polyvinyl chloride and other raw materials. Another supplier of the same weight class is Mitsubishi Sumitomo Corporation (SUMCO), which is also a Japanese company. These companies produce huge carrot-shaped silver silicon ingots that are cut into silicon wafers by countless small manufacturers worldwide.

      Perhaps you have never heard of the company, but the silicon ingot department is quite remarkable – it is the ultimate survivor in the elimination process that has lasted for two generations and is extremely tortured. This industry was initiated by the United States. At some time, American companies such as Raytheon and Monsanto were among the best in the industry, but they could not keep pace with the development of the situation and eventually withdrew. Munich's WACKER chemical company once dominated and finally withdrew.

In all fairness, if the Japanese really want to attract the attention of the world, they just need to use Shin-Etsu company. This will lead to a shortage of global silicon materials, so that the consequences of the 1973 Arab oil embargo easily as a picnic!

      Regardless of the criteria used, ShineWoshi's monocrystalline silicon production department is a classic example of the Warren Buffett quote. Buffett said that a truly great company must have a lasting "moat" to protect the excellent returns of its invested capital.

       Shin-Etsu's economic basis is Moore's Law - the number of transistors on silicon wafers will double every two years. Every generation of computer chips puts higher demands on the purity of silicon.

       In 2015, the purity of the crystals in Shin-Etsu has reached an incredible 99.999999999%—or no more than one foreign atom per one billion atoms.

In order to ensure a stable supply of high-quality products, Shin-Etsu Group manufactures the main raw material of its main business, namely silicon metal, and establishes a consistent production system starting from raw materials.

      In addition to silicon products, Shin-Etsu's other industry-leading industry is rare earth magnets. Although this term is not common in everyday life, rare earth magnets uniquely combine superior magnetic properties with light weight. This result makes rare earth magnets the most anticipated future industries - from hybrid vehicles to important components of magnetic levitation trains; moreover, Shin Kong's rare earth magnet products are also an important technology in high-performance hard disks. In addition, Shin-Etsu is also occupying the leading position in other important and fast-growing high-tech fields such as photoresists, atomic resonance fluorescent etch, three-layer materials, LED packages, and gallium arsenide semiconductors.

       It is worth mentioning that the number of employees employed by Shin-Etsu is nearly double that of Facebook; it is more than double the number of Linkedin employees. Perhaps even more impressive, the number of employees is nearly five times that of Twitter.

       Established in the mid-1920s, Shin-Etsu, which makes fertilizers for business, is constantly building its own business. It is probably more powerful today than it has ever been in history. Shin-Etsu Chemical's net cash also amounted to 924.9 billion yen, ranking second in the Japanese company.