Recently, there have been frequent industry trends: Nanjing Pukou plans to release several measures to promote the high-quality development of the integrated circuit industry; Shanghai Semiconductor Equipment and Materials Phase II Fund completed the first 1.5 billion yuan; The IDM project of Ningbo Zhongxin Semiconductor Optoelectronics and Power Devices and the research and development supporting project of Shanghai Xinsheng Semiconductor Integrated Circuit Silicon Materials have been capped; Wuxi Integrated Circuit Industry Fund officially unveiled; The Hesai Maxwell Intelligent Manufacturing Center project has been basically completed, and Midea plans to raise an additional 300 million yuan

Nanjing Pukou plans to release several measures to promote the high-quality development of the integrated circuit industry

On August 14th, the People's Government of Pukou District, Nanjing City issued a public notice soliciting opinions on the "Several Measures to Promote the High Quality Development of the Integrated Circuit Industry in Pukou District" (hereinafter referred to as the "Several Measures"). The following are the specific contents of the "Several Measures":

Image source: Screenshot of the Announcement of the People's Government of Pukou District, Nanjing City

Encourage enterprises to grow and strengthen, and provide financial rewards to enterprises based on their annual operating income. Among them, integrated circuit manufacturing enterprises with annual operating revenue exceeding 100 million yuan, 500 million yuan, 1 billion yuan, 3 billion yuan, and 5 billion yuan for the first time will be given one-time rewards of up to 500000 yuan, 1 million yuan, 2 million yuan, 4 million yuan, and 6 million yuan after recognition; For integrated circuit design enterprises with annual operating revenue exceeding 50 million yuan, 100 million yuan, 200 million yuan, 500 million yuan, and 1 billion yuan for the first time, a one-time reward of up to 300000 yuan, 500000 yuan, 800000 yuan, 1 million yuan, and 1.5 million yuan will be given after recognition.

Encourage increased investment in core equipment and provide financial subsidies for integrated circuit enterprises to purchase core equipment. If an integrated circuit enterprise purchases core equipment (with a single equipment original value of 200000 yuan or more) for 10 million yuan or more, a 10% subsidy will be given based on the actual annual payment, with a maximum total subsidy of 20 million yuan per enterprise.

Support technological innovation in enterprises, purchase EDA license authorization, upgrades, or tool kits for integrated circuit design, manufacturing, and public service enterprises, conduct research and development and production of high-end chips, advanced or characteristic processes, and provide subsidies based on actual payment fees. Strengthen support for integrated circuit design enterprises in chip production, and provide subsidies to enterprises engaged in multi project wafer (MPW) chip production and the first round of full mask engineering product chip production.

Encourage the industrialization of innovative achievements, encourage integrated circuit enterprises to apply for qualifications for innovative products, specialized and special new products, and the first (set) major equipment, and promote research and development and industrialization. Subsidies will be provided based on the annual sales of products and amounts.

Encourage industrial resource linkage, encourage integrated circuit platform enterprises to provide services such as EDA leasing, IP reuse, simulation accelerators, etc. Encourage industry chain manufacturers and system solution integrators to purchase integrated circuit products, equipment, materials, consumables, etc. Encourage design companies to carry out wafer functionality, reliability, compatibility testing (including in process and in process testing), failure analysis, packaging, and other businesses, and provide financial subsidies according to different types.

Increase the recruitment of major projects and provide varying degrees of subsidies for the R&D and fixed asset investment of newly settled projects in the fields of chip design, wafer manufacturing, packaging testing, and system integration.

Shanghai Semiconductor Equipment and Materials Phase II Fund Completed the First 1.5 Billion Pass

Recently, Shanghai Semiconductor Equipment and Materials Industry Investment Management Co., Ltd. (referred to as "Semiconductor Management Company"), a subsidiary of Puke Investment, officially announced that it has completed the first phase of the new fund, with a scale of 1.5 billion yuan, and has completed the filing with the China Infrastructure Investment Association, initiating the first batch of project investments.

This fund is the Shanghai Semiconductor Equipment and Materials Phase II Private Equity Investment Fund (referred to as the "Phase II Fund"), with a target size of 2 billion yuan. It will continue the successful experience of the Shanghai Semiconductor Equipment and Materials Industry Investment Fund Phase I (referred to as the "Phase I Fund"), continue to deeply explore the semiconductor equipment, materials, and components fields with broad market space and strong domestic substitution demand, while also taking into account semiconductor design, digital economy, artificial intelligence Upstream and downstream related fields in the semiconductor industry chain such as new energy.

The second phase fund management team is one of the earliest professional teams in China to carry out investment in the integrated circuit industry. It has successful and rich experience in investment and mergers and acquisitions in the semiconductor field, and has invested in more than 60 integrated circuit enterprises. The first phase of the fund managed by the team has a scale of 5.05 billion yuan. Over the past four years, it has invested in a total of 35 projects focusing on semiconductor equipment, materials, components, and upstream and downstream. Among them, it has acquired and invested in a number of leading enterprises in the field of overseas equipment and materials segmentation, including Singapore STI, a global leader in packaging and testing equipment (merged with listed company Changchuan Technology), and Swiss SPT, a global leader in semiconductor semiconductor ceramic cutting tools; Investment has supported a group of enterprises in key fields, with core technologies, and undertaking major national projects. As of the end of 2022, as the investment period has just passed, the DPI of the first fund has reached 56%, and the return on investment of the exit part exceeds 600%.

At present, Chinese Mainland has become the world's largest semiconductor equipment market and the second largest semiconductor material market, with broad market space, but this field is also the most serious part of the "choke". Many core raw materials cannot be self-sufficient, and the import of key equipment parts depends on. With strong support from national policies, as domestic substitution accelerates and the demand for emerging industries such as artificial intelligence, new energy vehicles, and the Internet of Things explodes, semiconductor equipment (including components) materials will be a sustainable and prosperous investment direction for a considerable period of time in the future.

The second phase of the fund will further extend the industrial chain upstream based on the deep accumulation of equipment materials and upstream and downstream resources, focusing on core components that replace domestic sources, and increasing investment efforts. Currently, a batch of high-quality projects have been reserved, and investment is accelerating.

Ningbo Zhongxin Semiconductor Optoelectronics and Power Device IDM Project Capped

According to the official WeChat account of Ningbo Zhongxin Semiconductor, the IDM project for optoelectronic and power devices of Ningbo Zhongxin Semiconductor has officially been capped recently.

According to previous news, the project officially started construction on February 8th this year. The total investment of the project is 980 million yuan, adopting the IDM (vertical integration) model that integrates chip design, wafer manufacturing, and packaging testing. The main construction is a 6-inch silicon based wafer production line with 60000 chips per month and a SOT, IPM, PDFN, TO packaging testing production line with 70 million chips per month.

It is understood that Ningbo Zhongxin Semiconductor Co., Ltd. is an IDM chip company that focuses on the vertical integration of semiconductor chip design, research and development, wafer manufacturing, and packaging testing for optoelectronic and characteristic devices. It has a design and development, production, packaging technology, and management team with rich experience in domestic and foreign semiconductor companies.

Shanghai Xinsheng Semiconductor Integrated Circuit Silicon Material Engineering R&D Supporting Project Capped

According to the official WeChat account of Shanghai Lingang Industrial Zone, on August 10th, the capping ceremony for the research and development supporting project of Shanghai Xinsheng Semiconductor Integrated Circuit Silicon Materials Engineering was held in Dongfang Xin Gang, Lingang New Area.

According to previous news, the project was acquired in July 2022 and construction began in November. It is planned to build a silicon material engineering technology research and development experimental base, which will completely change China's shortcomings in silicon material engineering research and application, drive the development of domestic silicon material supporting industries, and also drive continuous innovation in the upstream and downstream industries of related silicon materials.

Shanghai Xinsheng Semiconductor Technology Co., Ltd. is a wholly-owned subsidiary of Shanghai Silicon Industry Group Co., Ltd. It was established in June 2014 and is located in the Lingang New Area. It is a Chinese enterprise that provides commercial semiconductor silicon wafers.

The total scale is 5 billion yuan, and the Wuxi Integrated Circuit Industry Fund has officially been unveiled

According to the official WeChat account of Xichuang Investment, on August 9th, at the opening ceremony of the 2023 Integrated Circuit (Wuxi) Innovation and Development Conference, the Wuxi Integrated Circuit Industry Special Fund with a total scale of 5 billion yuan was officially unveiled.

It is reported that Wuxi Innovation Investment Group Co., Ltd. (hereinafter referred to as "Wuxi Innovation Investment") is leading the establishment of a Wuxi Integrated Circuit Industry Fund with a total scale of 5 billion yuan to further promote the high-quality development of the integrated circuit industry in Wuxi, build a landmark industrial cluster with core competitiveness and international influence, guide the financial empowerment of the industry, and optimize and integrate existing integrated circuit investments. Afterwards, Xichuang Investment will strengthen the existing investment in integrated circuits in Wuxi and increase the scale of the integrated circuit industry in Wuxi as the main principle, managing and operating this special fund.

In addition, it is worth noting that the Wuxi National "Core Fire" Innovation and Entrepreneurship Base Automotive Chip Reliability Testing Platform and the Jiangsu Province (Wuxi) Integrated Circuit Industry Integration Cluster have been unveiled, and more than 30 key industrial projects with a total amount of over 20 billion yuan have been signed, including industrial projects such as Zhuosheng Micro, Yuanshixin, and Baikejing.

The Hesai Maxwell Intelligent Manufacturing Center project has been basically completed

According to the official WeChat account of Jiading, Shanghai, on August 10th, it was reported that the Hesai Maxwell Intelligent Manufacturing Center project located in the Jiading Industrial Zone has been basically completed and aims to be put into use by the end of the year.

It is reported that the Hesai Maxwell Intelligent Manufacturing Center project has an investment of over 1 billion yuan and covers an area of about 40 acres. The design inspiration for its appearance comes from an aircraft carrier, including a research and development and production building, auxiliary buildings, landscaping and outdoor ancillary works, supporting roads, etc. The Hesai Maxwell Intelligent Manufacturing Center will undertake the research and development, production, vehicle gauge testing and other functional modules of LiDAR. It plans to adopt advanced intelligent manufacturing technology in the industry, apply a large number of intelligent industrial robots, and achieve the goal of automation of over 100 production processes, with a 90% automation rate for the entire line.

It is understood that Hesai has been designated for mass production by 11 mainstream automobile manufacturers, and 6 will start mass production and delivery by the end of 2023. In addition, Hesai Technology landed on NASDAQ on February 9th, becoming the "first stock of China's LiDAR".

Adding RF front-end chips, Midea plans to raise an additional 300 million yuan

On August 11th, Medica released a plan to issue A-shares to specific targets through a simplified procedure for the year 2023. The total amount of funds proposed to be raised from the issuance of stocks to specific targets through a simplified procedure does not exceed 300 million yuan, of which 210 million yuan will be used for semiconductor wafer manufacturing and testing projects, and 90 million yuan will be used to supplement working capital.

According to disclosure, the semiconductor wafer manufacturing and testing project plans to utilize some of the company's existing equipment and site, and increase investment of 397.2625 million yuan to build a production line with an annual output of 240000 semiconductor wafers and 2.4 billion semiconductor chip testing. This project mainly produces RF front-end chips and other products, with a wide range of application fields and broad market space. The company has mastered the core technology of RF front-end chip production and has sufficient talent reserves in the optical optoelectronics and semiconductor industries. This project seizes the trend of domestic substitution of RF front-end chips and helps the company further improve its industrial layout.

RF front-end chips belong to a technology intensive manufacturing industry, with high difficulty in design, development, and manufacturing processes. Currently, American and Japanese companies represented by Skyworks, Murata, Qualcomm, Qorvo, and Broadcom have occupied the main market share globally, and have also mastered the core technologies and advanced processes of the industry, resulting in high market concentration.

Medikai stated that this fundraising investment project is in line with the rapid growth trend of China's RF front-end chip demand. By utilizing the company's existing technological advantages and manufacturing experience, it helps the company achieve its layout in the RF front-end chip industry, improve the domestic production capacity and self-sufficiency rate of RF front-end chips and other products, and further promote the development and localization substitution of China's RF front-end chip industry, To lay a favorable foundation for the sustainable development of the company.