New trends of national large funds?

At the end of last year, the semiconductor industry experienced the dilemma of insufficient production capacity, and many chip manufacturers began to take countermeasures. On June 8, China Resources micro released the joint venture project of large fund phase II and Chongqing Xiyong to build a 12 inch power semiconductor wafer production line.

China Resources Microelectronics (Chongqing) Co., Ltd., a wholly-owned subsidiary of China Resources Microelectronics, China Resources Microelectronics holdings, together with national integrated circuit industry investment fund phase II Co., Ltd. and Chongqing Xiyong Microelectronics Industrial Park Development Co., Ltd., signed the investment agreement of Runxi Microelectronics (Chongqing) Co., Ltd. and began to establish Runxi Microelectronics (Chongqing) Co., Ltd. (tentative name). The registered capital is planned to be 5 billion yuan.

Runxi Microelectronics will invest in the construction of 12 inch power semiconductor wafer production line, with a planned investment of 7.55 billion yuan. Among them, Huawei holdings invested 950 million yuan with its own funds, accounting for 19% of the registered capital of the project company after the completion of the investment. After the completion of the project, it is expected to produce 30000 12 inch medium and high-end power semiconductor chips per month, and build 12 inch epitaxial and wafer technology capacity.

The business scope of the new company includes licensed items: import and export of goods, import and export of technology, import and export agency. General projects: development, manufacturing and sales of integrated circuit products, and provision of after-sales service and technical service of relevant products.

China Resources micro said that by optimizing the industrial layout, appropriately expanding the scale of power semiconductor production capacity, improving the company's market competitive advantage, further improving the company's product core competitiveness, improving the company's sustainable development ability, and further establishing the company's leading position in the domestic power semiconductor field.

It is worth noting that in March this year, China Resources micro acquired 47.31% of the shares of China Resources Microelectronics (Chongqing) Co., Ltd. held by Chongqing Xiyong Micro Electronics Industrial Park Development Co., Ltd. for 1.443 billion yuan.

Based on the layout of the whole industry chain, as early as the upsurge of Wafer Factory Construction in 2018, China Resources micro invested nearly 10 billion yuan to build the first 12 inch wafer production line in Chongqing Xiyong micro power park, mainly producing power semiconductor products such as MOSFET, IGBT and power management chip.

China Resources micro released its 2020 annual report. During the reporting period, the company realized an operating revenue of 6.977 billion yuan, an increase of 21.50% over the same period of last year, and a mother's net profit of 964 million yuan, an increase of 140.46% over the same period of last year. Meanwhile, according to the first quarter report, the company's operating revenue in the first quarter of 2021 was 2.045 billion yuan, an increase of 47.92% over the previous year, and its net profit was 400 million yuan, an increase of 251.85% over the previous year. China Resources micro said that this was mainly due to the prosperity of the industry, the high utilization rate of the company's overall production capacity, the rise of gross profit margin, and the product profitability was better than that in the same period last year.