Chinese semiconductor industry

[tokenanalyst]

Demonstrating Strong Competitiveness Chip Acer's Micro-device Lithography Equipment Has Been Sold to the Japanese Market Recently​

According to news from Weibo, according to the official website of Xinqi Microdevice, the company's MAS6 direct writing lithography equipment has recently been successfully sold to the Japanese market. The MAS6 direct writing lithography machine is suitable for digital imaging systems for mass production of IC packaging substrates. Using DMD technology, it can achieve a height resolution of 6μm.

According to the data released by China Taiwan Circuit Board Association (TPCA), at present, the precision requirements of high-end products such as HDI boards and flexible boards have reached 15-30 μm, and IC substrates have the highest technical requirements, with a minimum line width requirement of 5 μm. Japan occupies the forefront of advanced manufacturing of substrates in the world and guides the development direction of global IC substrates. The successful entry of Microdevice direct-writing lithography equipment into the Japanese market has proved the competitiveness of Microdevice in this field.

According to reports, the MAS6 direct-writing lithography machine equipment of Xinqi Micro Devices is specially developed for the customer needs of mass production of L/S: 10/10μm nodes in the field of IC substrates (FC-BGA substrates, FC-CSP substrates). The equipment adopts DMD direct imaging technology, and cooperates with reasonable optical path design, so that the resolution accuracy can reach 6/6μm; adopts high-precision precision displacement platform system, and cooperates with high-precision environmental temperature control, so that the alignment accuracy can reach 5μm. At the same time, each optical path is equipped with an active focus module, so that the optical path follows the height fluctuation of the substrate during the exposure process, and always works on the best focal plane, ensuring the production yield of precise analysis. The moving towlines inside the equipment are all dust-free towlines to ensure that there is no dust or debris during long-term use, and the yield rate is further guaranteed.

Figure: Microchip MAS6 direct writing lithography machine

According to the data, Xinqi Microdevice specializes in the R&D and production of direct imaging equipment and direct writing lithography equipment with micro-nano direct writing lithography as the core technology, and has sold equipment products to more than 300 customers. Since its establishment in 2015, it has shipped more than 700 units in the field of semiconductor equipment. In terms of products, the technical level of the PCB series LDI equipment of Xinqi micro-package is in the leading position in China, and has reached the technical level of major overseas manufacturers. Among them, compared with the current mainstream traditional exposure equipment, Mas 50T has the advantages of higher precision and higher production capacity. In addition, MAS6/8 can be applied to IC substrates in the pan-semiconductor field, and has global competitiveness.

Microdevice said that the company's equipment has successfully developed the Japanese substrate market, reflecting customers' high recognition of the technology and quality of Microdevice's products, and at the same time providing Microdevice with a broad market expansion space.

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Is incredible to think that HDI board manufacturing is reaching lithography resolutions of mid 70s chips.

 

[FairAndUnbiased]

Demonstrating Strong Competitiveness Chip Acer's Micro-device Lithography Equipment Has Been Sold to the Japanese Market Recently​

According to news from Weibo, according to the official website of Xinqi Microdevice, the company's MAS6 direct writing lithography equipment has recently been successfully sold to the Japanese market. The MAS6 direct writing lithography machine is suitable for digital imaging systems for mass production of IC packaging substrates. Using DMD technology, it can achieve a height resolution of 6μm.

According to the data released by China Taiwan Circuit Board Association (TPCA), at present, the precision requirements of high-end products such as HDI boards and flexible boards have reached 15-30 μm, and IC substrates have the highest technical requirements, with a minimum line width requirement of 5 μm. Japan occupies the forefront of advanced manufacturing of substrates in the world and guides the development direction of global IC substrates. The successful entry of Microdevice direct-writing lithography equipment into the Japanese market has proved the competitiveness of Microdevice in this field.

According to reports, the MAS6 direct-writing lithography machine equipment of Xinqi Micro Devices is specially developed for the customer needs of mass production of L/S: 10/10μm nodes in the field of IC substrates (FC-BGA substrates, FC-CSP substrates). The equipment adopts DMD direct imaging technology, and cooperates with reasonable optical path design, so that the resolution accuracy can reach 6/6μm; adopts high-precision precision displacement platform system, and cooperates with high-precision environmental temperature control, so that the alignment accuracy can reach 5μm. At the same time, each optical path is equipped with an active focus module, so that the optical path follows the height fluctuation of the substrate during the exposure process, and always works on the best focal plane, ensuring the production yield of precise analysis. The moving towlines inside the equipment are all dust-free towlines to ensure that there is no dust or debris during long-term use, and the yield rate is further guaranteed.

Figure: Microchip MAS6 direct writing lithography machine

According to the data, Xinqi Microdevice specializes in the R&D and production of direct imaging equipment and direct writing lithography equipment with micro-nano direct writing lithography as the core technology, and has sold equipment products to more than 300 customers. Since its establishment in 2015, it has shipped more than 700 units in the field of semiconductor equipment. In terms of products, the technical level of the PCB series LDI equipment of Xinqi micro-package is in the leading position in China, and has reached the technical level of major overseas manufacturers. Among them, compared with the current mainstream traditional exposure equipment, Mas 50T has the advantages of higher precision and higher production capacity. In addition, MAS6/8 can be applied to IC substrates in the pan-semiconductor field, and has global competitiveness.

Microdevice said that the company's equipment has successfully developed the Japanese substrate market, reflecting customers' high recognition of the technology and quality of Microdevice's products, and at the same time providing Microdevice with a broad market expansion space.

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Is incredible to think that HDI board manufacturing is reaching lithography resolutions of mid 70s chips.

View attachment 102621

It would completely cabbagize industrial ICs if even 1 um could be achieved on maskless optical lithography, as that is sufficient for 100 MHz 32 bit microcontrollers. You could have tiny runs of <10k chips be economical for stuff like power, RF, mixed signal MCU, etc.

 

[tokenanalyst]

It would completely cabbagize industrial ICs if even 1 um could be achieved on maskless optical lithography, as that is sufficient for 100 MHz 32 bit microcontrollers. You could have tiny runs of <10k chips be economical for stuff like power, RF, mixed signal MCU, etc.

Yes, I am wonder if one day microelectronics like tin film transistors gates could be integrated directly into the board apart from the discrete components for extra functionality.

 

[FairAndUnbiased]

Yes, I am wonder if one day microelectronics like tin film transistors gates could be integrated directly into the board apart from the discrete components for extra functionality.

I don't doubt it, active packaging i.e. silicon interposers is already available.

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[tokenanalyst]

Semiconductor industry: Jita and Huahong lead the bidding volume of corrosion/removal/PVD domestic bidding ratio leading​

In October, a total of 70 tenders were invited, mainly for Jita, Huahong, SMIC and Changxin. The bidding in October 2022 will mainly focus on the production lines of Jita, Huahong, SMIC, and Changxin, with a total of 70 biddings.

In terms of bidding equipment, the overall bidding volume is mostly for probe stations, ion implanters, and testing equipment. Among them, the probe stations and ion implanters are mainly for Jita’s special process production lines, and the testing equipment is mainly Jita and Huahong. . In addition, infrastructure projects are mainly bidding for the SMIC Lingang 12-inch wafer foundry production line and the Changxin memory project production line. From January to October 2022, a total of 874 bids were invited for wafer production lines in the statistical sample. Among them, Jita, Huahong, and Yandong ranked the top three in terms of equipment bids. Overall, the bidding is mainly for measuring equipment, deposition equipment and etching equipment.

From January to October, domestic manufacturers mostly won bids in wet etching, degumming, and PVD equipment. In terms of bid winning, in October 2022, the wafer production line in the statistical sample won the bid for a total of 4 equipment, including testing, PVD, SACVD, and heat treatment equipment. From January to October 2022, the wafer production lines in the statistical sample won a total of 906 equipment, most of which were measurement, deposition, and heat treatment equipment; the overall winning ratio of domestic equipment was about 29%, of which silicon wafer regeneration, gas-liquid system , Wet etching, degumming, and PVD equipment have a relatively high proportion of domestic bids.

From January to October, the domestic equipment of North Huachuang, Zhongwei Company, and Wanye Enterprises performed well in winning bids in their respective process fields. From January to October 2022, domestic semiconductor equipment manufacturers won bids for a total of 208 pieces of equipment. North Huachuang, Zhongwei Company, and Wanye Enterprises ranked the top three, winning bids for 59, 22, and 21 pieces of equipment respectively. Among them, North Huachuang mostly won the bids for etching, oxidation, and PVD equipment; Zhongwei Company won the bid mainly for etching equipment; Wanye Enterprise won the bid mainly for etching, deposition, and heat treatment equipment. From January to October 2022, the proportion of domestic semiconductor equipment manufacturers' total winning bids in the corresponding process links is 26%. Among them, Shengmei Shanghai's silicon wafer recycling equipment, North Huachuang's PVD equipment and oxidation equipment took the lead in the proportion of winning bids in the corresponding process links, accounting for 67%, 55% and 54% respectively.

Investment suggestion: Against the background that the scale of the semiconductor equipment market is stabilizing and the increase in share contributes to the main increase, domestic semiconductor equipment manufacturers rely on the rapid expansion of local wafer production capacity, as well as the company's own product competitiveness, broad share growth space and category expansion It is expected to accelerate the increase in the domestic substitution share of semiconductor equipment, and the growth rate and space are very significant. It is recommended to pay attention to companies with strong positions in the core process of semiconductors and companies that have expanded new categories this year: North Huachuang, Huahai Qingke, Tuojing Technology, Changchuan Technology*, China Micro Corporation*, Shengmei Shanghai*, Xinyuanwei, Wanye Enterprise, Zhichun Technology*, Huafon Measurement and Control* and other targets.​

 

[tokenanalyst]

North Huachuang (002371): Q3 performance continues to grow rapidly and deeply benefits from domestic substitution​

company's performance in the third quarter increased rapidly, and verification, orders, and production expansion were simultaneously promoted. Under the background of accelerating localization, the company continues to improve its product system, which is expected to benefit deeply.

Investment points:

Maintain the "overweight" rating and maintain the target price of 372.74 yuan. The company has a complete product line and is deeply benefiting from domestic substitution. Since the Q3 performance slightly exceeded expectations and there are sufficient orders in hand, the EPS for 2022-2024 is raised to 4.02/5.72/7.61 yuan (the original forecast for 2022-2024 is 2.76/4.13/5.42 yuan) ). Considering the acceleration of downstream equipment verification, and the valuation of the semiconductor equipment industry at 58 times PE, we give 65 times PE in 2023 and maintain the target price to 372.74 yuan.

Plenty of orders has boosted performance and significantly improved profitability. In 3Q22, the company achieved revenue of 4.568 billion yuan, YOY+78.11%, a new high in single-quarter revenue; the net profit attributable to the parent in the first three quarters was 1.69 billion yuan, YOY+156%, and the profitability level increased significantly. The company's contract liabilities and inventories were RMB 6.512 billion and RMB 11.574 billion, up +18% and +52% year-on-year, respectively, indicating sufficient orders in hand.

New product breakthroughs in multiple product lines consolidated the platform's leading position. The company's product system continues to improve. In August 2022, it officially released the CCP dielectric etching machine, which is applied to Logic, BCD, MEMS and other fields to achieve full coverage of the etching field. It has completed verification and mass production in 5 customers. In addition, many new products such as PVD, CVD, ALD, and cleaning machines have entered the mainstream production line, and the scale effect has continued to be realized, and the profitability has steadily increased.

Under the background of accelerated localization, fundraising and investment projects are steadily advancing. The escalation of U.S. sanctions has promoted the localization process, and the company, as a domestic semiconductor equipment manufacturer with the most complete product line, is expected to benefit significantly. The company has steadily promoted fund-raising projects to consolidate its leading position. The construction of the "High-precision Electronic Components Industrialization Base Expansion Project" has been completed and reached the planned production capacity. The third phase of construction has started in full swing.

 

[tokenanalyst]

Zhongwei Company (688012): The new orders signed in the first three quarters increased by 60.24% year-on-year, and the deployment of thin film deposition equipment accelerated​

3Q22 revenue increased by 45.9% year-on-year, and net profit attributable to the parent company increased by 123.9% year-on-year. The company's 1-3Q22 revenue was 3.043 billion yuan (YoY +46.81%), and the net profit attributable to the parent was 793 million yuan (YoY +46.34%). The net profit attributable to the parent company increased by about 479 million yuan year-on-year, and the non-recurring profit and loss decreased by 228 million yuan year-on-year, mainly because the government subsidy decreased by about 216 million yuan, and the income from changes in fair value decreased by 52 million yuan over the same period, mainly because the company held SMIC The decline in international stock prices resulted in 3Q22 revenue of 1.071 billion yuan (YoY +45.9%, QoQ +4.7%), net profit attributable to the parent company of 325 million yuan (YoY +123.9%, QoQ -7.3%), net profit attributable to the parent company after deducting non-existing expenses 203 million yuan (YoY +96.7%, QoQ -20.1%).

　　Newly signed orders in the first three quarters increased by 60.24% year-on-year. The company's 1-3Q22 newly signed orders amounted to 5.64 billion yuan (YoY +60.24%). In the first three quarters, the revenue of etching equipment was 2.001 billion yuan (YoY +48.00%), of which CCP etching equipment revenue was 1.451 billion yuan (YoY +29.27%), and ICP etching equipment revenue was 551 million yuan (YoY +139.33%); MOCVD Equipment revenue was RMB 388 million (YoY +27.70%). In 3Q22, the revenue of etching equipment was 702 million yuan (YoY +41.96%, QoQ +20.0%), and the revenue of MOCVD equipment was 147 million yuan (YoY+73.89%, QoQ -26.1%).

　　In 3Q22, the gross profit margin increased by 2.42pct year-on-year, and the net operating cash flow decreased by 82% year-on-year. 1-3Q22 gross profit margin was 45.51% (YoY +2.83pct), 3Q22 gross profit margin was 45.78% (YoY +2.47%, QoQ +0.51%), the year-on-year increase was mainly due to the increase in gross profit margin of etching equipment and MOCVD equipment, 1- In 3Q22, the gross profit margin of etching equipment was 46.48%, an increase of 2.5pct year-on-year; the gross profit margin of MOCVD was 35.83%, an increase of 3.62pct year-on-year.

　　During the company's 3Q22 period, the sales, management, R&D, and financial expense ratios were 9.3%, 4.6%, 13.9%, and -3.5%, respectively, with year-on-year changes of +0.8, -2.1, +1.5, and +1.6pct. 1-3Q22 Net operating cash flow was 73 million yuan (YoY -82%), mainly because the company prepared raw materials for business growth, and increased shipments to customers, resulting in a substantial increase in inventory, and cash payments for purchasing goods and receiving labor services increased year-on-year.

　　The performance of MOCVD has increased significantly, and the layout of thin film deposition equipment has been accelerated. The company's 3Q22 MOCVD equipment revenue increased by about 73.89% year-on-year. The MOCVD equipment has been verified by domestic and foreign leading manufacturers. The equipment production capacity, deposition thickness uniformity, and temperature control design have all reached the international leading level. The company's new products for Micro LED are expected to It will be launched in 2023; the company's LPCVD equipment has entered the customer process verification stage and is expected to be launched at the end of 2022; at the same time, the Epi epitaxy equipment has been deployed, the prototype design has been completed, and it is entering the debugging stage, which is expected to be launched in 2022-2023.

 

[FairAndUnbiased]

North Huachuang (002371): Q3 performance continues to grow rapidly and deeply benefits from domestic substitution​

company's performance in the third quarter increased rapidly, and verification, orders, and production expansion were simultaneously promoted. Under the background of accelerating localization, the company continues to improve its product system, which is expected to benefit deeply.

Investment points:

Maintain the "overweight" rating and maintain the target price of 372.74 yuan. The company has a complete product line and is deeply benefiting from domestic substitution. Since the Q3 performance slightly exceeded expectations and there are sufficient orders in hand, the EPS for 2022-2024 is raised to 4.02/5.72/7.61 yuan (the original forecast for 2022-2024 is 2.76/4.13/5.42 yuan) ). Considering the acceleration of downstream equipment verification, and the valuation of the semiconductor equipment industry at 58 times PE, we give 65 times PE in 2023 and maintain the target price to 372.74 yuan.

Plenty of orders has boosted performance and significantly improved profitability. In 3Q22, the company achieved revenue of 4.568 billion yuan, YOY+78.11%, a new high in single-quarter revenue; the net profit attributable to the parent in the first three quarters was 1.69 billion yuan, YOY+156%, and the profitability level increased significantly. The company's contract liabilities and inventories were RMB 6.512 billion and RMB 11.574 billion, up +18% and +52% year-on-year, respectively, indicating sufficient orders in hand.

New product breakthroughs in multiple product lines consolidated the platform's leading position. The company's product system continues to improve. In August 2022, it officially released the CCP dielectric etching machine, which is applied to Logic, BCD, MEMS and other fields to achieve full coverage of the etching field. It has completed verification and mass production in 5 customers. In addition, many new products such as PVD, CVD, ALD, and cleaning machines have entered the mainstream production line, and the scale effect has continued to be realized, and the profitability has steadily increased.

Under the background of accelerated localization, fundraising and investment projects are steadily advancing. The escalation of U.S. sanctions has promoted the localization process, and the company, as a domestic semiconductor equipment manufacturer with the most complete product line, is expected to benefit significantly. The company has steadily promoted fund-raising projects to consolidate its leading position. The construction of the "High-precision Electronic Components Industrialization Base Expansion Project" has been completed and reached the planned production capacity. The third phase of construction has started in full swing.

Naura has to increase its production of clean and strip equipment. Can't fully trust ACM Research since its legal HQ is still in some certain country.

 

[tokenanalyst]

Naura has to increase its production of clean and strip equipment. Can't fully trust ACM Research since its legal HQ is still in some certain country.

I think ACM Reseach Shanghai operate on their own. ACM US is mainly their financial HQ and a way for them to serve the global market, I dont think they manufacture or do R&D in the US. Their assets are in China and most of their R&D is done in China and is heavily subsidize by the Chinese goverment. In any case they could be forced to sell their Chinese assets and IP to another Chinese company or to operate independently.

 

[PopularScience]

Hefei Changxin Memory (CXMT) June 2022 production per month. I think will reach 120,000 next month.