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Yesterday, Saiwei Semiconductor, a world-leading MEMS foundry, issued an announcement stating that the company signed a "Cooperation Agreement" with the People's Government of Qingzhou City on April 1, 2021, and plans to initiate an investment of 1 billion yuan in the Qingzhou Economic Development Zone to build the Juneng International 6-8 inch silicon-based gallium nitride power device semiconductor manufacturing project in phases.
The announcement further pointed out that the project covers a total area of 30 acres. After the completion and production of the first phase, it will have a production capacity of 5,000 6-8 inch GaN chip wafers per month. After the completion and production of the second phase, it will have a production capacity of 12,000 6-8 inch GaN chip wafers per month, which will provide mature technical support and production capacity guarantee for the strong demand of global GaN product customers.
According to the announcement, the planned construction period for the first phase of the project is 9 months. Preparations for production will be completed before the end of 2021, and production will be put into operation in the first half of 2022. After the first phase of production capacity is put into operation and becomes effective, it is expected to generate an additional annual sales revenue of 500 million yuan and profits and taxes of 80 million yuan.
Saiwei stated in the announcement that the company's GaN (gallium nitride) business has strong market demand and its independently developed products have excellent performance, but it is severely constrained by external uncontrollable production capacity. Therefore, the further development of the company's GaN business urgently needs the guarantee of independent and controllable production capacity. This time, the company signed a "Cooperation Agreement" with the Qingzhou Municipal People's Government to jointly promote the construction of 6-8 inch GaN chip wafer manufacturing projects. It will carry out adaptive supplementary construction on the basis of leasing existing land and factory buildings, and has locked in a complete set of hotline equipment. The goal is to be completed and ready for production within 2021. It is conducive to the company's further improvement of the full industry chain IDM (vertically integrated manufacturing) layout of the GaN business, and further strengthen production capacity guarantees on the basis of existing industry chain cooperation. Grasp the key opportunity window for the development of the GaN business, and gradually form independent, controllable, fully localized, and sustainably expandable GaN materials, design, and manufacturing capabilities, and promote the long-term development of the company's third-generation semiconductor business.
As of now, Saiwei has invested in the establishment of "Qingdao Juneng Chuangxin Microelectronics Co., Ltd." in Laoshan District, Qingdao City in July 2018, which is mainly engaged in the design and development of power and microwave devices, especially gallium nitride (GaN) power and microwave devices; in June 2018, it has invested in the establishment of "Jueneng Jingyuan (Qingdao) Semiconductor Materials Co., Ltd." in Jimo District, Qingdao City, which is mainly engaged in the design, development and production of semiconductor materials, especially gallium nitride (GaN) epitaxial materials. The third-generation semiconductor material manufacturing project (Phase I) invested and constructed by the company has reached the production conditions in September 2019 and officially started production. As the company's first-level platform company for GaN business, Juneng Chuangxin has brought together the industry's leading team, and has the technical capabilities and reserves of the entire industry chain such as third-generation semiconductor material growth, process manufacturing, and device design. So far, it has formed a series of products in 6-8 inch silicon-based GaN epitaxial wafers, GaN power devices and applications and achieved mass sales.
The company signed a "Cooperation Agreement" with the People's Government of Qingzhou City, and plans to build a 6-8 inch silicon-based gallium nitride power device semiconductor manufacturing project in Qingzhou City. If the project is successfully completed, it will help the company to further improve the full industrial chain layout of the GaN business, seize the key opportunity window for the development of the GaN business, and gradually form independent and controllable production and manufacturing capabilities, promote the long-term development of the company's related businesses, and help improve the company's overall competitiveness. It will have a positive impact on the company's long-term development.
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