Saiwei Electronics: The company is considering continuing to invest in the third-generation semiconductor business

On November 30, an investor asked Saiwei Electronics that the company signed a "Cooperation Framework Agreement" with the Qingdao Development Zone Management Committee last year to build a 6-inch gallium nitride microwave device production line and an 8-inch gallium nitride power device production line in Qingdao. Now more than a year has passed, is the project still in progress? Or has it been cancelled or moved to other cities? Is the company still prepared to continue investing in third-generation semiconductors?

Saiwei Semiconductor said that the company's GaN epitaxial material growth and device design business in Qingdao are operating normally, and the construction of production lines in the local area has not yet started. However, considering the current challenges in stable mass supply, the company is indeed considering continuing to invest in third-generation semiconductor business and forming an IDM development model.

Saiwei Semiconductor pointed out that the gallium nitride business faces many technical challenges. The company planned to layout GaN epitaxial material growth and device design in 2017-2018 (the relevant subsidiary was established in 2018). So far, the research and development and industrialization of GaN materials and devices have progressed faster than originally expected, and a product sequence has been formed. Among them, the device has begun to sign formal batch sales contracts. However, it is an emerging business in the new technology field after all, and the company's shareholding ratio is not high. Objectively speaking, it will take some time for the gallium nitride business to contribute to the scale of the group's performance.

Regarding MEMS foundry, Saiwei Semiconductor stated that the company's MEMS process development and wafer foundry capacity have always been relatively tight, with long order schedules. On the one hand, market demand is strong, and on the other hand, the company has industry-leading technology and processes and can enjoy favorable prices and payment terms. In recent years, the company's average unit price of MEMS wafers and business gross profit margin can also clearly reflect this situation; the company's current MEMS foundry capacity is all 8-inch wafers, which is industry-leading.