Chen Wei of Guangdong Xin Semiconductor: Phase III and IV production will strive to reach a monthly production capacity of 120,000 pieces by 2025

On November 2, the 2021 China Integrated Circuit Manufacturing Annual Conference (CICD) Summit Forum was held in Guangzhou. In the invited expert report session of this summit forum, Chen Wei, President and CEO of Guangzhou CanSemi Semiconductor Technology Co., Ltd. (hereinafter referred to as "CanSemi Semiconductor"), delivered a wonderful speech on the theme of "Exploration and Practice of Collaborative Development of Integrated Circuit Industry Chain in Guangdong-Hong Kong-Macao Greater Bay Area".

Looking back on the development of the semiconductor market, Chen Wei said that the overall scale has continued to grow in recent years, so I am very optimistic about market demand; I firmly believe that the growth in demand driven by chip applications will far exceed the expansion of production capacity.

As we all know, the shortage of chip production capacity has been going on for a long time. Chen Wei said: "The reason for the shortage of production capacity is that, on the one hand, the sudden outbreak of the epidemic has led to a misjudgment of chip demand; secondly, it is demand. The demand for chips in various applications is ubiquitous. The third is structural adjustment, the adjustment of IDM and Foundry; and finally, it is expansion. The concentration of wafer fab capacity in advanced process expansion is relatively high, and the expansion of mature process capacity is cautious."

He pointed out that the automotive market is the hardest hit by "chip shortages" this year. The main reason is that the previous supply chain management of the automotive industry was zero inventory, or even negative inventory. In addition, due to the epidemic, automakers misjudged their sales forecasts at the beginning of last year. The sudden increase in demand in the later period, the long chip manufacturing cycle, and the high requirements for automotive-grade chips all led to an extreme shortage of chip production capacity.

Chen Wei believes that the Guangdong-Hong Kong-Macao Greater Bay Area can rely on its own strong terminal application market to seek development opportunities in the face of the current semiconductor industry environment. In addition, the Greater Bay Area is also very open. In the Guangdong-Hong Kong-Macao Greater Bay Area, Guangdong Province insists on market-oriented capital operations, which is a very special advantage.

In addition to the huge terminal applications, Chen Wei also pointed out that the Guangdong-Hong Kong-Macao Greater Bay Area should also give full play to its own advantages and develop the chip manufacturing industry in conjunction with the industry-university-research cooperation of universities. Because the development of integrated circuits requires global cross-regional cooperation, the Greater Bay Area should also develop cross-regionally and internationally. In this way, we can develop in a coordinated manner in the industry's industrial chain ecology and create this "chip ecology".

It is reported that there are currently 120 integrated circuit-related companies in the Bay Area, including the Guangdong Semiconductor Association and the Guangdong-Hong Kong-Macao Greater Bay Area Industry Alliance. As one of them, CanSemi is not only the only chip manufacturing company dominated by market-oriented capital and market-oriented mechanisms, but also the only one focusing on serving the Chinese market, and the only 12-inch chip factory in the Guangdong-Hong Kong-Macao Greater Bay Area that has entered mass production.

According to Chen Wei, "After the third and fourth phases are put into production, we will strive to reach a monthly production capacity of 120,000 pieces by the end of 2025."