Zhonghuan Semiconductor: 12-inch wafer breakthrough in key technology/product performance and quality

On April 1, Zhonghuan Semiconductor responded on the investor interaction platform that the company continues to conduct technical research and development and iterative updates on mature mass-produced and under-development products, and continues to promote product coverage of various integrated circuit chips. The Yixing semiconductor large silicon wafer project is progressing smoothly, among which 12-inch wafers have made major breakthroughs in key technologies and product performance and quality, and have been mass-produced and supplied to major domestic digital logic chip and storage chip manufacturers.

It is understood that Zhonghuan Semiconductor's total semiconductor production capacity is planned to be 1.05 million 8-inch wafers/month and 620,000 12-inch wafers/month. Currently, the capacity has been built to 500,000 8-inch wafers/month and 70,000 12-inch wafers/month, and the project continues to advance. The traditional silicon wafer business for power semiconductor products has grown steadily, supplying domestic and international users. Currently, the project has achieved a capacity of about 500,000 8-inch wafers/month and 70,000 12-inch wafers/month.

At the same time, regarding when the planned six-phase monocrystalline projects will start production, Zhonghuan Semiconductor stated that the Ningxia Phase VI project officially started construction on March 18, and is expected to start production before the end of the year and be fully put into production by the end of 2022.

Regarding the 2021 silicon material procurement plan, Zhonghuan Semiconductor pointed out that the procurement plan has been implemented and agreements have been signed with various silicon material suppliers, of which 82% of the total procurement volume is in long-term order mode and 18% is in temporary order mode. "The company's silicon material procurement has a long-term, stable supply system and a good supply structure. The procurement plan is implemented in combination with the company's production capacity needs, and the supply and procurement situation is good. Among them, the company announced the "Announcement on the Signing of a Long-term Framework Agreement for the Purchase and Sale of Polysilicon" on February 3, 2021, agreeing to purchase 350,000 tons of polysilicon materials including granular silicon from GCL-Poly from January 1, 2022 to December 31, 2026."

As for the inventory issue, Zhonghuan Semiconductor said that its inventory is at a reasonable level, and the year-on-year change in inventory is mainly due to the change in the scope of consolidation and the expansion of production scale. At present, Zhonghuan Semiconductor's production line continues to be fully operational, and G12 silicon wafers are in short supply. For example, in March, its G12 output was about 2GW, and the demand was about 3.2-3.5GW. The company is accelerating the progress of its expansion projects and striving to meet the supply needs of downstream customers.