CHINA IC will booming
AKEN Cheung
Director . PCB substrate manufacturer. Advantages: Cost reduction with high reliability. |FCBGA| FCCSP|Coreless|CSP| SiP|Module|FBGA memory| DDR3|DDR4|DDR5|mmWave|Embedded|PCB substrate|uHDI PCB|Optical etc. mSAP
In 2012, China's IC wafer production capacity ranked fifth in seven regions around the world, and it was ranked third before soaring to the United States and Japan in 2018 and 2019. Integrated circuits account for the largest share of wafer production capacity (excluding discrete devices, optoelectronic devices, MEMS and sensors).
World fabs predict that IC wafer production capacity in mainland China will increase by 14% year-on-year in 2019, 21% in 202, and at least 17% this year. Among all regions, the growth rate of Taiwan in the same period was 3% to 4%, and the growth rate ranked second.
From 2019 to the end of 2021, China's memory wafer capacity will increase by 95%, foundry will increase by 47%, and analog will increase by 29%. Foundry will be the largest part of it, reaching 2 million pieces per month (folded into 8-inch wafers). Memory will reach the scale of 1.5 million pieces per month, while the simulation will exceed 120,000 pieces per month.
In addition to local Chinese companies, many international companies have contributed to the increase in wafer production capacity in mainland China.
Since 2012, the share of production capacity contributed by Chinese companies and international companies has hardly changed, although the share of Chinese companies has slightly decreased from 60% to 57%. From 2019 to 2021, Chinese wholly-owned companies will increase wafer production capacity by nearly 60%, which is the most in all fields. Companies such as SMIC, Huahong Semiconductor, Hefei Jinghe, Wuhan Xinxin, and Huali Microelectronics are driving this growth.
During the same period, Chinese companies will increase memory production capacity from 0 to 300,000 pieces per month. Companies such as Yangtze River Storage and Changxin Storage are actively promoting rapid growth by increasing the production capacity of 3DNAND and DRAM. In the early stage, HOREXS combined with market needs and deployed storage substrate technology R&D and production early, which will also promote the rapid growth of storage products such as DRAM and MCP. TSMC and UMC are the biggest drivers of foundry's capacity growth, while Samsung, Hynix, and Intel are the biggest drivers of memory capacity expansion.
(AKEN Cheung)