2020 Semiconductor Project Contract Signing Report Card: Total Investment Exceeds 590.3 Billion Yuan

2020 is destined to be an extraordinary year. In addition to the nationwide fight against the epidemic, in the semiconductor field, facing the severe international situation, domestic semiconductor manufacturers are also fighting for domestic substitution.

According to incomplete statistics from Jiwei.com, in 2020, more than 478 semiconductor projects were implemented in more than 23 provinces and cities. Only the projects with disclosed investment amounts were counted, and the total investment in projects implemented throughout the year exceeded 590.3 billion yuan.

(Note: Only projects with disclosed investment amounts are counted)

From the perspective of the total investment in projects implemented throughout the year, in the first half of 2020, although affected by the epidemic, the momentum of signing contracts remained unabated. Among them, the total contract amount in February exceeded 73.83 billion yuan, mainly concentrated signing contracts, and May won the annual championship with a total investment of 75.625 billion yuan. After experiencing the investment boom in the first half of the year, the total amount of signed projects disclosed in July dropped sharply, but began to rise after August, reaching the peak in the second half of 2020 in September, with a total investment of more than 73.49 billion yuan.

It is worth mentioning that in September, the 10 billion yuan Luxiao Technology Third Generation Semiconductor (Silicon Carbide) Industrial Park project was signed at the 2020 China Semiconductor Materials Innovation and Development Conference. In August, Luxiao Technology issued an announcement on signing a strategic cooperation framework agreement with Changfeng County, Hefei City to build a third-generation power semiconductor (silicon carbide) industrial park. Therefore, the total amount of contracts signed in September did not include the investment amount of Luxiao Technology's third-generation semiconductor (silicon carbide) industrial park project.

(Note: Only projects with disclosed investment amounts are counted)

Judging from the distribution of implemented projects, the total investment in the Yangtze River Delta region ranks at the top. In 2020, Jiangsu Province took the lead in implemented projects, with more than 112 projects implemented and a total investment of more than 123.9 billion yuan.

Jiangsu

In 2020, more than 112 projects were implemented in Jiangsu, accounting for 23.4% of the total number of projects implemented throughout the year, with a total investment of more than 123.9 billion yuan, accounting for 21% of the total investment throughout the year. More than three billion-yuan projects were implemented in Jiangsu, including the 15 billion-yuan Wuxi Pioneer Integrated Circuit Equipment and Materials Industrial Park, the 10 billion-yuan semiconductor evaporation equipment and silicon wafer production project, and the 3 billion-dollar Wusheng Semiconductor IDM project.

According to incomplete statistics from Jiwei.com, the projects implemented in Jiangsu cover the upstream, midstream and downstream of the chip design, manufacturing, packaging and testing industries, involving multiple fields such as lithography machines, third-generation semiconductors, 5G, sensors, touch screens, power semiconductors, FPGAs, and integrated circuit materials.

Jiangsu has always been the largest province in my country in terms of the scale of the integrated circuit industry, and the construction of integrated circuit industry belts in Nanjing, Suzhou, Wuxi and other places is accelerating. According to a report by China Jiangsu Network in October, Wang Qin, secretary of the Party Committee and director of the Jiangsu Provincial Department of Science and Technology, said that Jiangsu's integrated circuits account for 28% of the country's total.

It is understood that in the first half of 2020, the sales revenue of Jiangsu's integrated circuit industry was 87.129 billion yuan, a year-on-year increase of 35%.

On December 23, the Ninth Plenary Session of the 13th Jiangsu Provincial Committee of the Communist Party of China passed the "Proposal of the Jiangsu Provincial Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development of Jiangsu Province and the Long-Term Goals for 2035". Jiangsu will be guided by major needs and major tasks to deploy a number of major scientific and technological research projects in key areas and key links such as high-end equipment manufacturing, integrated circuits, biomedicine, artificial intelligence, mobile communications, quantum technology, aviation, software, and new materials, so as to break through key core technologies as soon as possible and accelerate the domestic substitution of key components.

Jiangxi

In 2020, more than 17 projects were implemented in Jiangxi, accounting for 4% of the total number of projects implemented throughout the year, with a total investment of more than 90.9 billion yuan, accounting for 15.4% of the total investment throughout the year.

It is worth noting that in 2020, two billion-yuan industrial parks were established in Jiangxi, including the 26 billion-yuan CRRC Industrial Park project and the 30 billion-yuan Konka Semiconductor Industrial Park and third-generation compound semiconductor project. The total investment in the two industrial parks reached 56 billion yuan, accounting for 61.6% of Jiangxi's total investment for the whole year.

According to incomplete statistics from Jiwei.com, the projects implemented in Jiangxi cover chip research and development, electronic components production, packaging, etc., involving touch screen, second-generation semiconductors, 5G, third-generation semiconductors and other fields.

Zhejiang

In 2020, Zhejiang has implemented more than 38 projects, accounting for 8% of the total number of projects implemented throughout the year, with a total investment of more than 79.2 billion yuan, accounting for 13.4% of the total investment throughout the year. More than 5 billion-yuan projects have been implemented, including the 12.7 billion yuan second phase 500-acre project of Ningbo Yongsi Electronics (Ningbo) Co., Ltd., the 10.6 billion yuan Jiaxing Industrial City Semiconductor Industrial Park project, the 10 billion yuan Chuangwang Optoelectronics uNEED Headquarters Base project, the 12 billion yuan Xitai Technology annual production of 250,000 silicon-based OLED micro-display production line project, and the 10.8 billion yuan integrated circuit advanced packaging and testing project.

Among them, the total investment amount of the second phase 500-acre project of Ningbo Yongsi Electronics (Ningbo) Co., Ltd. was shown to be 10 billion yuan when the contract was signed, but according to the latest news, the total investment amount of the project has now reached 12.7 billion yuan.

According to incomplete statistics from Jiwei.com, projects implemented in Zhejiang cover chip design, equipment research and development, chip production, advanced packaging and testing, IDM, etc., involving electronic materials, touch, AI, 5G, radio frequency, communications, sensors, lasers, power semiconductors, compound semiconductors and other fields.

The development of the integrated circuit industry in Zhejiang Province started early. It has a number of key enterprises with strong comprehensive strength in chip design, silicon material production, special process chip manufacturing, industry applications and other fields, and has initially formed a relatively complete industrial ecosystem.

In August 2020, Zhejiang Province issued the "Zhejiang Province's Action Plan for Rebuilding the Manufacturing Industry Base and Improving the Industrial Chain (2020-2025)". In terms of the integrated circuit industry chain, Zhejiang has made breakthroughs in third-generation semiconductor chips, dedicated design software (electronic design automation tools, etc.), dedicated equipment and materials, and has proactively laid out millimeter-wave chips, terahertz chips, and cloud-integrated chips to create an important domestic integrated circuit industry base. By 2025, the annual output value of Zhejiang's integrated circuit industry chain will exceed 250 billion yuan.

On November 19, the Eighth Plenary Session of the 14th Committee of the Communist Party of China Zhejiang Province passed the "Proposal of the Zhejiang Provincial Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development of Zhejiang Province and the Long-Term Goals for 2035". Zhejiang will proactively develop future industries such as artificial intelligence, bioengineering, third-generation semiconductors, brain-like chips, flexible electronics, cutting-edge new materials, quantum information, and accelerate the construction of future industry pilot zones.

Anhui

In 2020, Anhui has implemented more than 30 projects, accounting for 6.3% of the total number of projects implemented in the whole year, with a total investment of more than 68.2 billion yuan, accounting for 11.6% of the total investment in the whole year. More than 3 billion-yuan projects have been implemented in Anhui, including the 10 billion-yuan TowerJazz 12-inch analog integrated circuit project, the 10 billion-yuan Luxshare Technology Third Generation Power Semiconductor (Silicon Carbide) Industrial Park, and the 18 billion-yuan Hefei Jinghe Integrated Circuit Co., Ltd. Phase II project.

Among them, regarding the TowerJazz 12-inch analog integrated circuit project settled in Hefei, Anhui, Jiwei.com asked a person inside Towerjazz about this matter. When answering Jiwei.com's question about why it did not see the announcement as a listed company, the person responded: "As a listed company, we release substantive information and have legal responsibilities. Any transaction becomes substantive only when there are legal constraints between each other. At this stage, the company has not released any information publicly."