Xinjie Energy: The company's self-built packaging and testing plant has achieved full production and is actively expanding production

Recently, Xinjie Energy stated on an interactive platform that the company's self-built packaging and testing plant has achieved full production and is currently actively expanding new advanced packaging and testing production lines. After the expansion is completed, both the packaging and testing capacity and packaging and testing technical capabilities will be further enhanced.

Xinjie Energy pointed out that due to the continuous rise in industry prosperity and the good brand awareness of the company's products, the company's undelivered orders have been on a continuous growth trend. The company will deliver goods in succession according to orders, production capacity and actual customer conditions, and will also actively expand chip foundry capacity and packaging and testing capacity to strive to speed up supply.

Regarding the impact of rising wafer foundry prices, the company said that, in general, rising wafer foundry prices will bring pressure from rising costs. If the upstream wafer foundry prices rise, the company will make appropriate adjustments to the prices of related products to varying degrees based on the cost increase, market conditions, and the company's product delivery, in order to avoid negative impacts on the company's profitability.

In terms of foundry cooperation, Xinjie Energy said that its current main chip foundry is Hua Hong Semiconductor, which has been deeply involved in the power semiconductor field for more than 20 years and has been leading the development of power semiconductor chip process technology in China and even the world. It is China's first chip foundry platform to produce Trench-MOSFET, SJ-MOSFET, SGT, and IGBT products on 8-inch and 12-inch platforms. It is also the 8-inch wafer foundry with the largest production capacity of power devices in mainland China. It has a global leading position in the power semiconductor field and has a strategic partnership with the company, providing strong support for the company's rapid development.

It is understood that Xinjie Energy is the only design company in China that conducts product development and large-scale production business at Huahong Hongli Plant 1, Plant 2, Plant 3 and Plant 7 (12 inches). This year, on the basis of ensuring the relative stability of the original 8-inch platform production capacity, the company actively expanded its production capacity through business cooperation with Huahong Hongli's 12-inch platform; the company also disclosed in its 2020 annual report that "the company has been actively developing overseas chip foundries and has established initial business cooperation relationships. At present, the company has achieved the first batch of production of the first product at an overseas chip foundry, and purchased chips from another chip foundry as a supplement to production capacity."

In addition, the company's business development and capacity growth are only one aspect. MOSFET and IGBT product technologies are still developing rapidly, and technology is being updated very quickly. There are still many product varieties that need to increase R&D investment to fill the domestic gaps. These different technologies, different platforms, and different products have different gross profit margins according to different markets and customers. Even if the capacity remains unchanged, the company actively and positively conducts technology research and development on the world's leading foundry platform to ensure high-tech products, high-quality markets and customers, so as to further increase the gross profit margin and bring good returns to investors.

Xinjie Energy said that the company is indeed very close to Hua Hong Hongli's Wuxi 12-inch wafer factory (it can be reached through 3 traffic lights), and the company has certain advantages in time, place and people in its cooperation with it. For example, after the Spring Festival last year, during the period of high control of personnel mobility caused by the epidemic, it was a critical moment for Hua Hong Hongli's 12-inch wafer factory process adjustment and chip product development. The two R&D personnel conducted technical exchanges efficiently and closely, and promoted the company to become the first power semiconductor company in China to achieve large-scale mass production of Trench-MOSFET and SGT products on a 12-inch wafer platform. Since the industry's prosperity continued to rise in the second half of last year, the company has been actively striving for more production capacity. With the continuous improvement of Hua Hong Hongli's Wuxi 12-inch wafer production capacity, the company's 12-inch foundry capacity obtained from Hua Hong Hongli is also continuing to increase.

At present, Xinjie Energy has obtained the certification of the automotive quality system IATF16949. From the perspective of the quality management system, the company and its subsidiary-Electric Integrated Circuit, as an audit consortium, have the ability to provide customers with the design and production control of automotive electronic products. Moreover, the company has entered the automotive electronics supply chain and supplies batches to the first-tier suppliers of vehicle manufacturers as a second-tier supplier. The product automotive-grade certification AECQ is a non-mandatory requirement for second-tier suppliers. If the end customer has further needs, we can submit a certification application to a third party at any time.