Company Trend(Mar. 30)

Japanese semiconductor material manufacturer to expand production capacity of AI chip materials by investing RMB716mn!

According to the reports,  to meet the strong demand for AI chips, Resonac (formerly known as Showa Denko), a Japanese semiconductor material manufacturer, will expand its production capacity of high-performance semiconductor materials used for AI chips to 3.5~5 times of the current level.

Recently, Resonac announced that it plans to increase its capacity to produce materials for high-performance semiconductor chips such as AI chips, to 3.5~5 times of the current level. Specifically, it will mainly increase production of non-conductive film (NCF) and thermal Interface Material (TIM), both of which have already been adopted by Resonac’s customers for use in high-performance semiconductor chips. According to Resonac, NCF is used for HBM installed into high-performance semiconductor chips, and TIM is used for the thermal dissipation of high-performance semiconductor.

Resonac pointed out that the investment of the above-mentioned production capacity expansion plan is about 15bn yen (about RMB716mn), and the increased capacity is scheduled to be put into use after 2024. The scale of the market for AI chips in 2027 is expected to expand to 2.7 times of that in 2022, and Resonac will increase its capacities to produce the above-mentioned two materials in a timely manner, thereby strengthening its predominance in the market.

Comments:

From the perspective of the market prospect, the plan of expanding production capacity of high-performance materials for AI chips, announced by Resonac, a Japanese semiconductor material manufacturer, is undoubtedly a positive signal, indicating the sustainable development of the IC industry, especially the field of AI chips. At present, there is a strong demand for AI chips in the fields of cloud computing, edge computing and Internet of Things. Resonac’s capacity expansion plan is based on its keen insight into market demand and it intends to consolidate and expand its market share by meeting this demand.

In addition, Resonac’s decision to increase production of NCF and TIM, two key materials was also based on a deep understanding of the market trend. The application of NCF in high-performance semiconductors such as HBM  can improve the performance and stability of memories, while TIM plays a critical role in solving the heat dissipation of high-performance semiconductors, which helps to improve the working efficiency and reliability of semiconductors. The production expansion of the two materials will directly support the performance improvement and reduce cost of AI chips, thus promoting the further development of the AI chip market.

Industry Policy(Apr. 1)

US considers CHIPS Act 2.0; Commerce Secretary Raimondo predicts the necessity for ongoing investments

With its huge up-front investment, the semiconductor industry has become one of the fields for which a company should make most prudent decisions and more preparations. Currently, all countries are building their localized industrial chain, which has become the most important task of all national governments. As a “pioneer” of the chip subsidy war, the US government is considering launching new chip subsidy policies after CHIPS ACT, so as to continuously build its semiconductor manufacturing capacity, which is also eagerly awaited by a large number of US chip companies. Intel is looking forward to the follow-up policies after being granted nearly US$ 20bn from the federal government. Intel CEO pointed out that he didnt think CHIPS Act 1.0 was the whole story of rebuilding the semiconductor industry in the USA. This has also been widely recognized by business elites, people inside the White House and think tanks, and has triggered more discussions about the CHIPS Act 2.0.

Senators of the Democratic Party who participated in the formulation of the CHIPS Act pointed out that, US still needs to take some measures to further strengthen its chip supply chain, and the government will evaluate the construction process of the chain and find out where it needs to be supplemented. The US Commerce Secretary also said that there will be a second similar plan to continuously support investment in the chip industry. However, any subsequent act is unlikely to be put on the agenda this year, and it is unlikely that US will directly subsidize chip manufacturers as before.

Comments:

One and a half years ago, the signing of CHIPS Act of the USA marked a new development stage for the global semiconductor industry. However, it was not until this year that the official distribution of subsidies really kicked off. The total amount of CHIPS Act is about US$ 50bn, of which US$ 39bn is specially used for subsidizing manufacturers and another US$ 11bn will be invested in the R&D process. This allocation of funds obviously intends to promote the localization of semiconductor manufacturing and strengthen the R&D capabilities in cutting-edge science and technology fields. At the same time, the US government also provides corresponding tax credits, which will save a lot of taxes and fees for semiconductor manufacturers and further stimulate the development of the industry.

Despite such a large-scale capital investment, these subsidies are still not enough in the highly competitive chip industry. Apart from several companies obtaining large grants such as Intel, BAE System, Microchip Technology Incorporated, and  GlobalFoundries, many giants such as TSMC and Micron are also eager for new chip subsidies.

In fact, it is not impossible for the US to launch new chip subsidies. With the continuous expansion of the global semiconductor market and the continuous progress of technology, the US, as a science and technology power, naturally hopes to establish a local strong semiconductor industry chain. To achieve this goal, in addition to policy support, the US government also needs to invest a lot of money to cope with the competition and challenges in the global market.

Market Trend(Mar. 30)

US tightens chip exports to China again!

Recently, the Biden administration revised the rules of chip export to China. The 166-page new rules clarified that the restrictions on chip exports to China will also apply to notebooks containing AI chips, which means that the restrictions will be extended to a wider range of consumer electronics.

The new rules are scheduled to take effect on April 4. In October last year, the US issued a restriction order on Chip exports against China, prohibiting chip manufacturers such as Nvidia from selling the most advanced AI chips to China. This revision is based on the ban released last October. According to the BIS of the US Department of Commerce responsible for export restrictions, it plans to continue to update the restrictions on technology export to China and strengthen and adjust these measures.

Comments:

The release of new US chip restrictions against China has undoubtedly aggravated the complexity and uncertainty of the global IC industry. The new export rules not only expanded the scope of restrictions on the export of chips to China, but also explicitly included AI chips, showing the strict control attitude of the US in the field of IC, especially AI technology.

From the perspective of market prospect, the impact of the new export restrictions will cause obvious impact on the IC industry of China. As the largest consumer market of semiconductor in the world, China has a strong demand for AI chips and other high-performance chips. However, the implementation of the new restrictions will make Chinese enterprises face greater challenges in obtaining key chips. This will undoubtedly slow down the rapid development of the IC industry of China and bring new uncertainties to the global IC market.

Market Trend(Apr. 2)

An economic booster! The global trade "Canary” South Korea’s export stabled in March, with a new high in exports of Chips in nearly two years

With the continuous growth of global demand for semiconductors and technical equipment, South Koreas export data reached a new high in March, showing a strong economic growth momentum. According to the data released by the Ministry of Trade of South Korea on Monday, South Koreas average daily exports in March increased by 9.9% YoY, its overall exports increased by 3.1% YoY, and its imports decreased by 12.3% YoY, achieving a favorable balance of US$ 4.3bn.

Driven by the continuous recovery of the global semiconductor market, South Korea’s chip exports have become an important force leading its trade growth. In March, South Koreas chip exports totaled US$ 11.7bn, up 35.7% YoY, a monthly record since March 2022. This result not only highlights South Koreas important position in the global semiconductor industry chain but also shows the strong driving role of technology demand on economic growth.

Comments:

As South Korea is an important part of the global semiconductor industry chain, its export data directly reflects the strong demand for semiconductor products around the world. Especially, South Korea’s soaring export of chips not only reflects its advantages in the field of semiconductor manufacturing, but also indicates that the global semiconductor market is experiencing a recovery. South Koreas remarkable export growth in the field of memory chips has been driven by the rapid development of technologies such as cloud computing, big data and AI, while its export growth of logic chips reflects the rising global demand for high-performance computing. The growth trends of these two fields have undoubtedly brought huge market opportunities for the IC industry.

In addition, South Korea has also made an important breakthrough in substituting imported semiconductor equipment and materials with localized products. This not only enhances South Korea’s competitiveness in the global semiconductor industry chain but also provides an important guarantee for the supply chain security of the global semiconductor market. With the continuous advancement of technology and the continuous expansion of the market, South Korea is expected to play a more important role in the global semiconductor market.

Domestic Trend

Congratulations! Top mask aligner entered China!(Mar. 30)

On March 30th, GTA Semiconductor held a groundbreaking ceremony to welcome ASML’s mask aligners to its 300mm automobile-grade semiconductor IC manufacturing base at Lingang, Shanghai. The mask aligners moved to the 12-inch automobile-grade semiconductor production base of GTA Semiconductor, may be I-line and ArF series of dry-type DUV lithography systems. TWINSCAN XT: 400L is the latest generation i-line system of ASML, with a resolution down to 220nm, suitable for the production of 200mm and 300mm wafers. TWINSCAN NXT: 1470 dual-stage ArF system, it can print patterns with a resolution down to 220nm and has been adopted by most logic and memory customers. It has been installed into the mass manufacturing process for the production of 200mm and 300mm wafers, achieving a productivity of 330 wafers per hour. It is reported thatGTA Semiconductor now has two facilities in Shanghai, one in Lingang New Area and one in Xuhui District, with total production capacity (built & under construction）of 300,000 units/month (calculated by converting into 8 inches), of which the production capacity of 6-inch wafers is 70,000 units /month, that of 8-inch wafers is 110,000 units/month,  that of 12-inch wafers is 120,000 units/month, and that of SiC wafers is 30,000 units/month, which will be used for power devices.

Royole refuted rumor of bankruptcy, saying that it is still in operation(Apr. 1)

Recently, reports say that Shenzhen Royole Technologies Co., Ltd. and its subsidiaries Shenzhen Royole Electronic Technologies Co., Ltd. And Shenzhen Royole Display Technologies Co., Ltd. each have been involved in a new bankruptcy review case. On April 1, Royole officially stated that "it has not applied for bankruptcy voluntarily, nor has entered bankruptcy proceedings, and it is still in operation.” Royole also mentioned in its statement that the recent rumor originated from an employee who left the company and filed for bankruptcy review in the name of option settlement dispute. The company said that it has always attached great importance to safeguarding the legitimate rights and interests of employees. And it will, based on objective facts, actively and steadily handle related matters according to laws and regulations.

HT-Tech to continuously expand production(Apr. 2)

HT-Tech, a leading IC packaging and testing enterprise in China, with its industrial scale ranking among the top ten in the global IC packaging and testing industry, released its annual report on April 2. The company said that the falling price of product packaging resulted in a year-on-year decline in its operating performance due to the intensified competition of the industry in 2023. In 2023, the company packaged 46.929bn IC devices, up 11.95% YoY. In 2023, the company advanced the development of FOPLP packaging process and the verification of 2.5D process. With the verification of automotive AECQ100 Grade0 packaging process, the company obtained 42 authorized patents, including 15 invention patents. The company said that it would continue to carry out R&D and mass production of advanced packaging technologies and products and accelerate its production capacity of automotive electronic products. At the same time, it completed the construction of the projects (including four projects, such as the IC multi-chip packaging expansion project and the high-density system-level IC packaging and testing expansion project) with funds raised through private placement in 2021, built Jiangsu Pangu FOPLP production line, and advanced the investment projects with raised funds. In addition, the production capacities of HT-Tech Jiangsu and HT-Tech Shanghai are increasing steadily, which promoted the continuous expansion of the companys packaging scale.