Although the covid-19 pandemic has had a negative impact on the global economy, the increasing penetration of distance education and 5g mobile phones, the strong demand for parts brought by the construction of telecommunication infrastructure, and the emergence of some emerging industries have made the semiconductor market economy perform well. According to the latest research by trendforce, it is estimated that in 2020, the global wafer foundry revenue will grow by 23.8% year on year, the highest in a decade. < / P > < p > in the field of chip manufacturing, the pursuit of performance and power consumption of consumer electronics has attracted much attention to advanced manufacturing processes. At present, the most advanced node 5nm process will start mass production in early 2020, and advanced processes below 10nm have become one of the reasons for the growth of global foundry revenue this year. < / P > < p > according to the research of trendforce, the wafer production capacity of TSMC and Samsung is nearly full on the advanced technology of nodes below 10nm. < / P > < p > the most advanced 5nm process, as TSMC can not continue to supply Hisilicon semiconductor, Apple has become the only customer of TSMC’s 5nm process, which makes TSMC’s 5nm capacity utilization rate in the second quarter of 2020 in the range of 85% – 90%. However, with the advent of 5g, the demand for power management chips (PMIC) in smart phones and base stations has increased exponentially. Meanwhile, UMC and global foundries have gradually withdrawn from the competition of advanced technologies in recent years. TSMC is still actively expanding its 5nm capacity. Trendforce expects TSMC’s 5nm capacity expansion to enable it to capture nearly 60% of the advanced process market by the end of 2021. In addition to Apple’s 5nm + wafer for A15 bionic SOC, TSMC will also pilot produce a small number of amd5nm zen4 CPUs in 2021. From the end of 2021 to 2022, MediaTek, NVIDIA and Qualcomm will all start to produce 5nm or 4nm CPU. Intel’s first batch of outsourcing 5nm CPU is expected to be put into production in 2020. Demand from all aspects is prompting TSMC to expand its 5nm capacity. < / P > < p > at the same time, Samsung plans to expand its 5nm capacity in 2021. In addition to meeting the demand of Qualcomm snapdragon 885 and Samsung’s own exynos flagship SOC, Samsung will continue to support NVIDIA’s geforce GPU. However, Samsung will still be 20% behind TSMC in 5nm capacity. < / P > < p > another reason for the economic growth of wafer foundry is the development of aiot, and the product line of 28nm and above processes is more extensive, including the demand growth of CMOS image sensor, small size panel driver IC, RF components, single chip of TV system, WiFi and Bluetooth chip, and 28nm orders continue to fill. < / P > < p > however, behind the record breaking revenue of global wafer foundry, the production capacity of 8-inch wafer is tight. This situation has been going on from the second quarter of 2019 to now. There is no sign of relief. On the contrary, it is becoming more and more serious, which has become a hidden worry of the semiconductor industry under the growth of revenue. Driven by Moore’s law, the wafer size of a chip has grown from 6 inches (150 mm) to 8 inches (200 mm) and then to 12 inches (300 mm). The larger the wafer size, the more chips can be produced in the same wafer, which can reduce the cost and improve the yield. < / P > < p > from the development of wafer size, we can see that the 8-inch production line is more outdated and backward than 12 inch. With the same yield, a 12 inch wafer can produce about 200 ICs, twice as many as an 8-inch wafer. The former is more cost-effective. < / P > < p > however, 8-inch wafers also have their own advantages. Firstly, they have special wafer technology. Secondly, most of the depreciated fixed assets have lower costs. Most importantly, they are more economical for manufacturers with low production capacity requirements. < / P > < p > if we want to distinguish 8-inch wafer from 12 inch wafer, 8-inch wafer is mainly used for products that need feature technology or differentiation technology, including power chip, image sensor chip, fingerprint identification chip, MCU, wireless communication chip, etc., covering consumer electronics, communication, computing, industry, automobile and other fields. The 12 inch wafer is mainly used to manufacture high-performance chips such as CPU, logic IC and memory. It is widely used in the fields of PC, tablet computer and mobile phone. In recent years, on the one hand, due to the aging of 8-inch wafer plants, the maintenance is difficult and there is no new equipment to supplement, many manufacturers have closed 8-inch wafer plants one after another. According to the semi report, the number of 8-inch wafer production lines in the world reached the maximum of 200 in 2007, and then began to decline, to 188 in 2016. On the other hand, because 5g application drives the explosion of 8-inch demand, for example, a 5g mobile phone has more power chips than a 4G mobile phone. As a result, the current 8-inch wafer market is benefiting from the strong demand for power chips and display driver chips, and the production capacity is in short supply for a long time, and even the price rises. According to trendforce, advanced nodes and 8-inch capacity are key to the competitiveness of the foundry industry. How about the strength of the mainland’s OEM? < / P > < p > in terms of advanced manufacturing process, SMIC international is the leader, providing wafer foundry and technical services for 0.35 μ m to 14nm nodes, including logic circuit, mixed signal / CMOS RF circuit, high voltage circuit, system level chip, flash memory, EEPROM, image sensor, and liquid crystal micro display technology on silicon. Recently, Mr. Meng Xiaoliang has entered the fourth stage of mass production in the industry, and Mr. Liang Xiaoliang has entered the fourth stage of mass production in the industry. < / P > < p > another Fab with the same strength as SMIC is Huahong group, which is divided into Huahong semiconductor and Shanghai Huali. Among them, Huahong Semiconductor provides a variety of customized processes of 1.0 μ m to 65nm technology nodes, which is one of the preferred wafer foundry enterprises for intelligent and microcontroller embedded nonvolatile memories. Shanghai Huali can provide manufacturers with one-stop chip manufacturing technology services for different technology nodes from 65 / 55nm to 28 / 22nm. The chip products include baseband processor, image sensor, small and medium-sized LCD channel chip, touch screen controller, wireless connection, RF, processor free, smart card, set-top box integrated chip, power management chip and field programmable gate array Column, etc. < p > < p > in January this year, Huahong group disclosed the latest progress to the outside world. The 14nm FinFET process runs through the whole line, and the yield of SRAM has reached 25%. < / P > < p > in addition to SMIC international and Huahong group, which are mainly engaged in integrated circuit manufacturing, there are also companies in China, such as Wuhan Xinxin, China Resources Microelectronics, founder microelectronics, Yuexin semiconductor, Xinen semiconductor, etc., which also have wafer foundry business lines. < p > < p > founded in 2006, Wuhan Xinxin is the first manufacturer in China to produce image sensor, memory and AI accelerator chips with 3D integrated technology. It has 55nm low-power logic, 55nm RF and 55nm embedded flash memory technology. < p > < p > the OEM group of China Resources Microelectronics is engaged in open wafer foundry business, providing 1.0 μ m to 0.11 μ m process and characteristic wafer manufacturing technology services, mainly providing analog CMOS, BiCMOS, RF and hybrid CMOS, BCD, power devices and MEMS processes. < p > < p > founded in 2017, Yuexin semiconductor can provide a platform process of 90 μ m to 0.18 μ m, mainly producing analog chips, discrete devices and image sensors. Among them, SMIC and Huahong group have the largest number of production lines. SMIC has 3 8-inch Fabs and 5 12 inch Fabs (including joint venture holding), covering Beijing, Tianjin, Shanghai and Jiangyin. Huahong group has three 8-inch wafer plants and three 12 inch wafer plants. The monthly production capacity of 8-inch wafer plants is about 180000 pieces, and the monthly production capacity of 12 inch wafer plants is about 40000 pieces, all over Shanghai, Zhangjiang and Wuxi. < / P > < p > in addition, companies with 8-inch wafer plants include China Resources Microelectronics, Shanghai advanced (Jita semiconductor), and Swain micro. Companies with 12 inch wafer plants include Wuhan Xinxin semiconductor and Yuexin semiconductor. Companies represented by China Resources Microelectronics and founder microelectronics still have 6-inch production lines. < / P > < p > SMIC’s sales in the third quarter of 2020 were $1082.5 million, an increase of 15.3% compared with $938.5 million in the second quarter of 2020, and a 32.6% increase compared with $816.5 million in the third quarter of 2019. Revenue from power management, RF signal processing, fingerprint identification, and image signal processing increased significantly. < p > < p > Huahong semiconductor’s sales revenue in the first half of 2020 was $482.8 million, a decrease of 5.0% compared with the first half of 2019. The financial report shows that the main reason is the decrease of average sales price and the decline of demand for smart card chip products, which are partly offset by the increase in demand for MCU and power management products. According to the latest financial report of China Resources Microelectronics, its net profit in the first three quarters of 2020 was 758 million yuan, up 113.63% year on year. At present,

has few foundries in mainland China with advanced node technology. Currently, it relies heavily on SMIC. Huahong group is expected to achieve 14nm mass production in the next few years. The number of 8-inch and 12 inch wafer plants is the same. In the case of continuous shortage of 8-inch wafer capacity, Chinese semiconductor companies that are building 8-inch wafer plants will usher in new opportunities in the future. Global Tech

By ibmwl