CSI Interpretation: Aoyang Shunchang plans to invest 1.5 billion yuan to build integrated circuit chip production line

Aoyang Shunchang (002245) issued an announcement on the evening of January 3, 2015. On December 31, 2015, the company signed the "Australian Shunchang IC chip project investment letter of intent" with the Huai'an Municipal People's Government of Jiangsu Province. The company plans to invest in an 8-inch integrated circuit chip production line in Qinghe New District of Huai'an City, with an estimated total investment of approximately RMB 1.5 billion.

The production line mainly develops and manufactures IGBTs and Superjuctions based on silicon-based materials, and develops wide-bandgap semiconductor devices with mass-produced silicon carbide materials, which will be gradually completed in the next 1-2 years. After the completion of the project, it is estimated that the annual sales will exceed 2 billion yuan.

According to the announcement, the Aoyang Shunchang Investment Project is a strategic emerging industry that the country is actively encouraging and vigorously developing. The Huai'an Municipal Government has agreed to provide special support funds for the “8-inch integrated circuit chip production line” project according to the actual situation. Project construction, and help and support Aoyang Shunchang to apply for various support funds and support policies to the state, provinces and cities.

Aoyang Shunchang said that if the project can be implemented smoothly and quickly form production capacity, it will fill the gaps in some areas of the country's industry, and at the same time, it will gain the first-mover advantage of industrial development, and take the lead in forming production in the country and building an industrial chain. The starting area and core sector of the industry. The company signed an investment letter of intent to invest in the construction of an 8-inch integrated circuit chip production line, which is in line with the established development strategy, which is conducive to grasping the opportunities of industry development, forming a new development focus, and greatly enhancing the company's industry status and competitiveness.

In recent years, China has become the largest consumer of IGBTs, Superjuctions and wide-bandgap semiconductor chips, and is growing at a rate of more than 30% per year. At present, domestic power semiconductor companies mainly produce low-end power devices or engage in foundry business. Foreign domestic companies that produce silicon-based materials such as IGBT and Superjuction and wide-bandgap semiconductor chips are almost blank. For example, the IGBT market is mainly monopolized by European, American, and Japanese companies. The widely used high-power IGBT devices are basically dependent on imports, and are completely subject to foreign companies in terms of delivery cycle and purchase price. Aoyang Shunchang's investment in the construction of a new production line is conducive to filling the domestic gap and forming a new profit growth point.