Opinionated - China Chipping Away to Semiconductor Dominance

[艹艹艹]

Spreadtrum entered the Indian market in 2009, relatively early in the timeline in terms of the recent renewed effort between the two countries to actively redevelop trade links, and established an R&D center in Noida. Spreadtrum's business partners cover local mobile network operators and terminal manufacturers. Leading Indian internet access and telecommunications company, Reliance Communications, and many of the local influential mobile phone brands, including Micromax, Intex, Lava, LYF, XOLO and In Focus, broadly adopt Spreadtrum's 3G and 4G platforms. Nearly 50% of smartphones ship to Indian market adopted Spreadtrum platform, which led Spreadtrum to become the No.1 mobile phone chip provider in India.

http://www.spreadtrum.com/en/show_news.html?id=4952e1ff-4ce1-49cf-8f85-822839bfc556

 

[cirr]

Beijing's Tsinghua Unigroup seeks 2018 IPO for chip unit

Unigroup Spreadtrum RDA aims to raise funds amid national semiconductor mania

CHENG TING-FANG, Nikkei staff writer

Spreadtrum Communications headquarters in Shanghai

TAIPEI -- China's state-backed Tsinghua Unigroup is pushing for an initial public offering of its mobile chip unit, Unigroup Spreadtrum RDA, in 2018, sources told Nikkei Asian Review.

Unigroup Spreadtrum RDA, China's top mobile chipmaker which supplies to Samsung Electronics, has been spearheading Beijing's ferocious efforts to cultivate its domestic semiconductor industry to reduce dependence on foreign imports due to economic and security concerns.

"The company is currently talking to accountants and lawyers to prepare for its initial public offering in China though they have not quite decided which stock exchange they want to choose for listing," said a person familiar with the matter. "Tsinghua Unigroup has always wanted to have Unigroup Spreadtrum RDA go public."

The person together with another industry source said the IPO was set to be launched in 2018.

Roger Sheng, a Shanghai-based analyst with research company Gartner, says it is a smart move on Tsinghua Unigroup's part to take Unigroup Spreadtrum RDA public.

"Tsinghua Unigroup would need so much more money to develop next-generation mobile chips and it would be a relief for the company to raise funds from investors rather than paying out from its own pockets," Sheng said.

Sheng says Unigroup Spreadtrum RDA will be able to secure a higher price-to-earnings ratio in China than foreign markets with Beijing treating semiconductor production as a key industry.

He said the chip maker could become very popular with local investors as it is a well-known semiconductor company in China.

A Tsinghua Unigroup spokesperson confirmed to NAR that his group was working to bring Unigroup Spreadtrum RDA public, but declined to provide details on the schedule. Although the deal is still subject to external factors and the company has not decided where to list, there is little doubt that it will be one of the most prominent and closely watched IPOs to hit the market.

Tsinghua Unigroup is a Beijing-backed vehicle that has been pouring funds into various domestic tech programs, including an ongoing investment of more than $54 billion in two memory chip projects in Nanjing and Wuhan, as part of the government's policy directive to boost the domestic sector.

Over the past two years, Tsinghua Unigroup has been on an overseas shopping spree to acquire semiconductor companies, especially those in the U.S. and Taiwan.

Security issues

Yet most of the potential deals, including attempts to acquire U.S. storage solutions provider Western Digital and leading Taiwanese chip assembler Siliconware Precision Industry, fizzled out due to security concerns on the part of Washington and Taipei.

Unigroup Spreadtrum RDA controls Spreadtrum Communications and RDA Microelectronics, two key Chinese mobile chip makers that Tsinghua Unigroup acquired and privatized at the end of 2013 and 2014 in deals valued at $1.78 billion and $907 million respectively.

Both companies were originally listed on NASDAQ. For 2016, Spreadtrum and RDA said they together generated more than 12.5 billion yuan ($1.81 billion) in revenue.

Lenovo Group as its customers in addition to Samsung.

Spreadtrum unveiled its first 4G LTE chip at the beginning of 2016, but struggled to convince potential customers to switch from its bigger rivals, Taiwan's MediaTek and Qualcomm of the U.S.

Further adding to its woes, Spreadtrum has lost some orders for Samsung's mid- to low-end smartphones to MediaTek.

"Spreadtrum could barely make money or might even be losing money in this fierce competition," an executive at a key Spreadtrum supplier told NAR.

"Its 4G LTE product might still need to overcome issues of overheating and software-hardware integration before it can really make progress," the executive said.

Mark Li, an analyst at Bernstein, also said that Spreadtrum had a challenging year in 2016 as it could not get major smartphone makers to adopt its 4G LTE chips.

For all of 2016, Qualcomm and Mediatek respectively controlled 33% and 31% of the global mobile processor market. Spreadtrum, No. 3, controlled some 13%, according to Gartner's Roger Sheng.

Nikkei staff writer Debby Wu in Taipei contributed to this story.

http://asia.nikkei.com/Business/Com...Unigroup-seeks-2018-IPO-for-chip-unit-sources

 

[艹艹艹]

http://www.digitimes.com/news/a20170217PD205.html
China foundries planning FD-SOI process technology
Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Friday 17 February 2017]

China-based IC foundries, such as Shanghai Huali Microelectronics (HLMC), are evaluating plans to offer FD-SOI process technology since they are less competitive in the mainstream FinFET segment led by the world's major pure-play foundries and IDMs including Intel, Samsung and TSMC, according to industry sources.

HLMC has disclosed plans to roll out advanced 28nm and 14nm FinFET processes. The China-based 12-inch foundry is also mulling the launch of FD-SOI process technology to provide a low-cost alternative to FinFET technologies, said the sources.

With a growing number of China-based fabless firms focusing on Internet of Things (IoT) applications, a cheaper FD-SOI process will be more attractive than FinFET-type processes, the sources indicated. Eyeing the huge market potential, HLMC and other China-based foundries are looking to join the FD-SOI race, where Globalfoundries will be their major competitor.

Globalfoundries recently announced plans to build a new 12-inch wafer fab in Chengdu, China, based on a partnership between the company and the Chengdu municipality. The fab will focus on manufacturing Globalfoundries' commercially-available 22FDX process technology, with volume production expected to start in 2019.

Globalfoundries in 2015 rolled out its 22nm FD-SOI process dubbed 22FDX developed specifically for the rapidly-evolving mainstream mobile, IoT, RF connectivity and networking markets. The technology delivers FinFET-like performance and energy-efficiency at a cost comparable to 28nm planar technologies, the foundry claimed.

In September 2016, Globalfoundries unveiled a new 12nm FD-SOI semiconductor technology dubbed 12FDX designed for a broad range of applications from mobile computing and 5G connectivity to artificial intelligence and autonomous vehicles.

In other news, Shanghai Simgui Technology (Simgui), a China-based silicon semiconductor materials company, has recently entered commercial production of 8-inch silicon-on-insulator (SOI) wafers based on Soitec's proprietary Smart Cut technology, according to the sources.

more read：
China foundry ponders FD-SOI
http://www.electronicsweekly.com/news/business/china-foundry-ponders-fd-soi-2017-02/

 

[cirr]

Tsinghua to develop chips with UK company

Updated: 2017-03-10 08:27

A researcher uses a microscope during research work to design and develop a semiconductor product at a Tsinghua Unigroup research center in Beijing. [Photo/Agencies]


Beijing－Tsinghua Unigroup Ltd is teaming up with Britain's Dialog Semiconductor Plc to develop smartphone chips, in a deal that will help the Chinese technology giant expand its growing semiconductor empire.

Unigroup mobile-design subsidiary Spreadtrum RDA and the British supplier of chips to Apple Inc's iPhones and iPads are considering a joint venture in eastern China, in which the pair will jointly design communications components.

Dialog, which gets almost 70 percent of its revenue from Apple according to data compiled by Bloomberg, will help Unigroup with crucial mobile power management technology, in return for bigger access to the Chinese smartphone and Internet of Things market.

The Chinese company is keen on a deeper foray into the Internet of Things, a market that will blossom in coming years as devices in the home increasingly become connected. Unigroup is simultaneously devising an ambitious expansion in memory chips.

It has begun building a $30 billion memory-chip production complex in China that will become the country's largest when completed.

Spreadtrum RDA plans to launch its first chip for fifth-generation wireless networks in 2018.

Spreadtrum RDA Chairman Leo Li said: "We started as a low-end maker, and now after years of R&D investment, we're looking forward to gaining a bigger presence in the high-end sector. That is why we have joined hands with Dialog."

Unigroup bought Spreadtrum Communications and RDA Microelectronics Inc about three years ago and merged them to form a new mobile chip unit, which now competes with MediaTek Inc on the lower end while Qualcomm Inc dominates the higher end.

Spreadtrum RDA's biggest customer today is Samsung Electronics Co, Li said.

Spreadtrum RDA had revenue in 2016 of 12 billion yuan ($1.7 billion), up from 10.9 billion yuan a year earlier, the company said on Thursday. The company is now valued at about $8.5 billion, according to its website.

Asked about reports about a potential IPO down the line, Spreadtrum RDA's Li said the chip designer may need to raise capital in the future to buy companies and patents. He declined to elaborate.

Li said: "It's a Three Kingdoms situation in the global smartphone chip-making industry. Qualcomm, MediaTek and Spreadtrum RDA are the only three major players."

BLOOMBERG

http://www.chinadaily.com.cn/business/tech/2017-03/10/content_28502535.htm

 

[kankan326]

Good to know US' banning some products to China. That means we will soon have the same but made-in-China .

 

[cirr]

TSMC China sees profits decline significantly in 2016, says paper

Steve Shen, DIGITIMES, Taipei [Thursday 9 March 2017]

TSMC China, a TSMC 8-inch subsidiary in Shanghai, yielded net profits of NT$6.094 billion (US$197.52 million) in 2016, a sharp decline of 30.19% from a year earlier, according to a Chinese-language Commercial Times report, citing data from Taiwan-based China Credit Information Service (CCIS).

The decline was the first annual profit contraction since TSMC China became profitable in 2010 after five years of operations. Earnings peaked in 2015, during which profits totaled NT$8.73 billion on revenues of NT$21.867 billion.

Demand for chips made by 13/18-micron processes at TSMC China has been dwindling as the mainstream technology for terminal devices in the China market has been ushered to 16/28nm nodes, said the paper, citing Liu Pei-chen, a researcher at Taiwan Institute of Economic Research (TIER).

Additionally, TSMC China has also seen its orders lose out to China-based rivals including Semiconductor Manufacturing International Corporation (SMIC) and Huahung Grace Semiconductor Manufacturing (GSMC), an achievement of the China government's policy to foster the development of its own semiconductor industry, Liu said.

Meanwhile, TSMC also noted that the decline in earnings at its 8-inch fab in Shanghai was due to a lower utilization rate, as the plant's capacity was expanded in 2016 while demand for chips made by TSMC China was sliding, according to the paper.

TSMC is building a wholly-owned 12-inch fab in Nanjing, which is scheduled to begin production in the second half of 2018, using a more advanced 16nm process.

http://www.digitimes.com/news/a20170309PB200.html

 

[cirr]

China 12-inch fab capacity set to boom

Claire Sung, Taipei; Jessie Shen, DIGITIMES

[Tuesday 14 March 2017]

With major China-based chipmakers set to build new 12-inch fabs, the overall 12-inch fab capacity in China is expected to peak over the next two to three years.

Semiconductor Manufacturing International (SMIC) has disclosed plans to open new 12-inch fabs - one in Shanghai and the other in Shenzhen. The new 12-inch fab in Shanghai is scheduled to go into volume production for 14nm chips in 2018, while the 12-inch line in Shenzhen will be engaged in the manufacture of chips made using mature process technologies with early production expected to begin by the end of 2017. The new facilities will bring in an additional 110,000 12-inch wafers monthly.

Shanghai Huali Microelectronics (HLMC) recently held a groundbreaking ceremony for its second 12-inch fab in Shanghai, with volume production scheduled for the second half of 2018. The new fab will directly enter 28nm production with monthly capacity set at 40,000 units.

Startup Huaian Imaging Device Manufacturer (HIDM) plans to build a 12-inch fab in Huaian, Jiangsu province, with production capacity set at 20,000 wafers monthly. Founded in 2016, HIDM specializes in the design and manufacture of CMOS image sensor devices.

China's state-backed Tsinghua Unigroup is looking to establish a 12-inch fab in Chengdu, Sichuan province, which will be designed for the fabrication of logic chips, but has not disclosed further details about the facility.

In addition, Tsinghua Unigroup recently broke ground for a memory fab in Nanjing (Jiangsu province) designed for monthly capacity of 100,000 units, while its subsidiary Yangtze River Storage Technology is constructing a new memory plant in Wuhan (Hebei province), which will be dedicated to producing 3D NAND flash memory with volume production slated for 2018.

Fujian Jin Hua Integrated Circuit, which will production technologies developed by Taiwan's United Microelectronics (UMC), is constructing a 12-inch wafer fab for the manufacture of DRAM products with a goal of outputting 120,000 wafers monthly. UMC, with funding from Jin Hua, has assigned a group of engineers to develop 25/30nm process technologies that will be used for making chips at Jin Hua's 12-inch fab in Quanzhou, Fujian.

Hefei Chang Xin, a joint venture between GigaDevice Semiconductor and the Hefei city government of China's Anhui province, has plans to establish a 12-inch wafer fab capable of producing 125,000 units monthly. Hefei Chang Xin is expected to emerge and compete with Yangtze River Storage and Jin Hua for the title of China's largest memory chipmaker starting in 2018.

http://www.digitimes.com/news/a20170311PD200.html

@Bussard Ramjet India?

 

[onebyone]

China 12-inch fab capacity set to boom

Claire Sung, Taipei; Jessie Shen, DIGITIMES

[Tuesday 14 March 2017]

With major China-based chipmakers set to build new 12-inch fabs, the overall 12-inch fab capacity in China is expected to peak over the next two to three years.

Semiconductor Manufacturing International (SMIC) has disclosed plans to open new 12-inch fabs - one in Shanghai and the other in Shenzhen. The new 12-inch fab in Shanghai is scheduled to go into volume production for 14nm chips in 2018, while the 12-inch line in Shenzhen will be engaged in the manufacture of chips made using mature process technologies with early production expected to begin by the end of 2017. The new facilities will bring in an additional 110,000 12-inch wafers monthly.

Shanghai Huali Microelectronics (HLMC) recently held a groundbreaking ceremony for its second 12-inch fab in Shanghai, with volume production scheduled for the second half of 2018. The new fab will directly enter 28nm production with monthly capacity set at 40,000 units.

Startup Huaian Imaging Device Manufacturer (HIDM) plans to build a 12-inch fab in Huaian, Jiangsu province, with production capacity set at 20,000 wafers monthly. Founded in 2016, HIDM specializes in the design and manufacture of CMOS image sensor devices.

China's state-backed Tsinghua Unigroup is looking to establish a 12-inch fab in Chengdu, Sichuan province, which will be designed for the fabrication of logic chips, but has not disclosed further details about the facility.

In addition, Tsinghua Unigroup recently broke ground for a memory fab in Nanjing (Jiangsu province) designed for monthly capacity of 100,000 units, while its subsidiary Yangtze River Storage Technology is constructing a new memory plant in Wuhan (Hebei province), which will be dedicated to producing 3D NAND flash memory with volume production slated for 2018.

Fujian Jin Hua Integrated Circuit, which will production technologies developed by Taiwan's United Microelectronics (UMC), is constructing a 12-inch wafer fab for the manufacture of DRAM products with a goal of outputting 120,000 wafers monthly. UMC, with funding from Jin Hua, has assigned a group of engineers to develop 25/30nm process technologies that will be used for making chips at Jin Hua's 12-inch fab in Quanzhou, Fujian.

Hefei Chang Xin, a joint venture between GigaDevice Semiconductor and the Hefei city government of China's Anhui province, has plans to establish a 12-inch wafer fab capable of producing 125,000 units monthly. Hefei Chang Xin is expected to emerge and compete with Yangtze River Storage and Jin Hua for the title of China's largest memory chipmaker starting in 2018.

http://www.digitimes.com/news/a20170311PD200.html

@Bussard Ramjet India?

Good Work

 

[艹艹艹]

http://www.digitimes.com/news/a20170314PD208.html
Yangtze River Storage 3D NAND flash development on track
Claire Sung, Taipei; Jessie Shen, DIGITIMES [Wednesday 15 March 2017]

Yangtze River Storage Technology's (YMTC) development of 3D NAND flash technology is well on track, and equipment for the production of 3D NAND chips will be installed at its fab in the first quarter of 2018, said company CEO Simon Yang.

YMTC is engaged in the development of 32-layer 3D NAND flash chips, which will be in full production in 2019, according to Yang. The company aims to catch up with the world's leading memory vendors, in terms of technology, by 2020, Yang noted.

NAND flash demand is set to grow robustly driven by cloud computing and smart terminals, Yang said. Meanwhile, the China market has huge potential for growth, Yang indicated.

Both the DRAM or NAND flash market sectors are being dominated by a few key players, Yang identified. YMTC is looking to break the market dominance held by these few companies, said Yang, adding that the company's entry is to bring healthy competition within the industry.

China consumes as high as 55% of the total memory capacity. With the strong domestic demand, and financial support from China's central government, YMTC should be able to enhance its competitiveness against the current major memory players, Yang said.

YMTC is committed to developing its own technology which is critical to its long-term success, Yang noted. Making acquisitions or strategic investments is another approach for the company to grow its business, Yang said.

 

[艹艹艹]

http://www.telecomlead.com/telecom-statistics/fab-equipment-spending-2017-revealed-75181

 

[TaiShang]

http://www.telecomlead.com/telecom-statistics/fab-equipment-spending-2017-revealed-75181
View attachment 384189View attachment 384190View attachment 384191

One of the strategic sectors to be encouraged by the state under 13th 5-Year Plan.

Developmental state is the way to go for China. US was protectionist and heavily subsidizing for more than 100 years (1830s to 1940s). China has at least ten decades under a developmental state economy.

 

[cirr]

China IC design industry growing

Claire Sung, Shanghai; Jessie Shen, DIGITIMES

[Thursday 16 March 2017]

The "Made in China 2025" (MIC 2025) plan, published by the China State Council in May of 2015, has demonstrated the country's ambition to enhance its fabless IC design industry in terms of market share and technology capability. Major China-based fabless firms are looking to be capable of developing 10nm and sub-10nm chips in order to expand their global market presence.

China has set a goal for its IC design industry of generating US$60 billion in output value and grabbing a 35% share of the global IC design market.

China-based IC design companies can be divided into two groups, which are being backed financially by their government according to the MIC 2025 plan. A group of them focusing on PCs, servers and mobile devices are being encouraged to enhance their design capability for multi-core CPUs for computing or workstation applications, or multi-core and low-power mobile chips. The other engaged in the design and development of memory chips are being assisted in stepping into the embedded DRAM and 3D NAND flash sectors.

China's government has set up investment funds to foster the development of its local IC design industry, while giving strong support to local fabless firms with tax incentives, and preference in government procurement.

With the government subsidies, the number of China-based IC design houses climbed to 1,362 companies in 2016 from 681 in 2014. Meanwhile, China's top-10 IC design firms' combined revenues accounted for 46.1% of China's overall IC design industry output value in 2016 compared with 38.8% in 2014.

Shenzhen-based HiSilicon Technologies remained the largest China-based IC design company with revenues of CNY26 billion (US$3.76 billon), followed by second-place Unigroup Spreadtrum RDA with revenues of CNY12.5 billion, according to the China Semiconductor Industry Association (CSIA). Unigroup Spreadtrum RDA was formed as a result of Tsinghua Unigroup's takeover of both Spreadtrum Communications and RDA Microelectronics in 2014.

Ingenic Semiconductor, ZTE Microelectronics Technology and Huada Semiconductor rounded out the top-5 China-based IC design houses in 2016, CSIA disclosed.

The production value of China's IC industry increased 20.1% to CNY433.55 billion in 2016, while that of the IC design sector surged 24.1% on year to CNY164.43 billion, according to CSIA.

http://www.digitimes.com/news/a20170315PD210.html

 

[cirr]

It looks though SMIC has adopted the so-called "island hopping" tactic for its manufacturing processes: 28nm > 14nm > 7nm

14nm - 2018
7nm - 2020???

华为/ARM力挺！中芯国际加速自主7nm工艺：要做老大

2017-03-16 10:30:08 作者：万南

提起半导体先进制程，多数人首先想到的是Intel、台积电、三星、GlobalFoundries等，他们已经迈入10nm的节点，继续挑战摩尔定律。

而在内地，中芯国际（SMIC）则是规模最大、技术最先进的集成电路晶圆代工企业，目前已经可以成熟地代工28nm HKMG，量产14nm硅片凸块。

据Digitimes报道，中芯去年的营收同比增幅高达30.3%。

CEO表示，他们不仅将继续扩产12寸晶圆厂（300mm，目前业界最大最先进），还准备在7nm时代走上领导地位。

当然，问题就是，中芯国际的7nm何时能够推出。毕竟目前14nm仍未成熟，看起来他们和GF一样，准备跳过10nm这个过渡性的制程。

在资源储备上，中芯的研发投入占到营收的12%~13%的高度，7nm的合作伙伴已经有华为、欧洲微电子研究中心（IMEC）、中微半导体（AMEC）、ASML（阿斯麦）、Cadence（铿腾）、ARM、新思（Synopsys）、明导（Mentor Graphics）等众多大佬，外部也有国家对半导体的强力支持。

目前，7nm的EUV光刻机被ASML垄断，Intel和三星都用上了最先进的NXE 3350B，其单价高达6亿~15亿之间。



@Bussard Ramjet India?

 

[cirr]

SMIC to enter 7nm R&D, says CEO

Josephine Lien, Shanghai; Jessie Shen, DIGITIMES
[Tuesday 14 March 2017]

China-based pure-play foundry Semiconductor Manufacturing International (SMIC) is looking to start R&D for 7nm process technology later in 2017, according to company CEO and executive director Tzu-Yin Chiu.

SMIC will join the world's major chipmakers including Intel, Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics and Globalfoundries capable of making 7nm chips, said Chiu, adding that the China-based foundry has in recent years put increased focus on advance-node technologies with annual R&D expenses accounting for as high as 12-13% of revenues.

SMIC spent nearly US$2.7 billion in 2016 capex which was relatively high compared to previous years levels, Chiu indicated. During the year, the company had record revenues of US$2.9 billion with 30.3% on-year growth.

SMIC is developing advanced-node technologies with Huawei and nano-electronics research institute Imec, Chiu noted. The foundry is also working with many IC design service providers including Brite Semiconductor, Cadence Design Systems, Synopsys, ARM and Mentor Graphics, and is partnering with equipment and materials suppliers such as Applied Materials, Advanced Micro-Fabrication Equipment (AMEC), ASML, Shin-Etsu Handotai and Sumco.

As for the backend, SMIC is teaming up with Jiangsu Changjiang Electronics Technology (JCET), and the pair has set up a joint venture to provide a more complete supply chain for advanced-node manufacturing, Chiu said. Besides, SMIC is looking to further expand its 12-inch lines, Chiu added.

In addition, Chiu expressed optimism about chip demand for emerging IoT applications in China. SMIC plans to roll out 40ULP process technology later in 2017 for higher-end products to further expand its offerings for the segment, according to Chiu.

http://www.digitimes.com/news/a20170314PD200.html?mod=0

 

[艹艹艹]

The SMIC started R&D 7nm technology this year.