Smic Layout Industrial Chain, 14nm Mass Production In The First Half Of Next Year

- Dec 01, 2018-

On September 13, the 2018 China integrated circuit industry development seminar and the 21st China integrated circuit manufacturing annual conference was held in wuxi. Companies from the IC industry chain including wafer manufacturing, equipment and materials gathered together.Smic executive vice President li zhi told the conference that the company is in the stage of customer introduction of 14nm and will achieve mass production in the first half of next year.
IHS data shows that in 2017, pure wafer foundry revenue will reach $52 billion, and the revenue growth rate will reach 8.9% in the next five years. 8-inch foundry demand will continue to be strong, driven by advanced technology, and 12-inch foundry demand will continue to grow.At the same time, we can also see the positive correlation between the development of semiconductor industry and the development curve of world GDP. With the development of 5G, Internet of things, automotive electronics and cloud computing, big data and artificial intelligence, semiconductor industry has brought greater opportunities.
Smic continues to expand its production capacity and layout its industrial chain.Smic's production capacity has increased by nearly 160,000 units a month in the past three years, up 64 percent, smic said.In 2017, r&d investment exceeded us $500 million, accounting for 17% of sales, and capital expenditure was about us $2.5 billion.
Among the distribution of sales revenue technology nodes, 150nm and 180nm account for 37.1%, 55nm and 65nm account for 24.2%, and 40nm and 45nm account for 17.5%. These three major contributions account for more than 78% of the total revenue.
To accelerate investment in the new plant, smic Shanghai's new 12-inch integrated circuit production line plant was launched and its foundation stone was laid on October 13, 2016.
On January 30, 2018, smic south, a subsidiary of smic, signed a joint venture contract and capital increase and share increase agreement with the national large fund and Shanghai integrated circuit fund, which increased its registered capital from 210 million us dollars to 3.5 billion us dollars and accelerated the introduction of advanced manufacturing technology and products.
In terms of research and development, accelerate the independent research and development of advanced technologies 14 nanometers and below.Smic ranks fifth in the world in the number of 14-nanometer patent applications.In the second quarter of 2018, the first-generation 14-nanometer FinFET technology entered the stage of customer introduction and will enter mass production in the first half of next year.
Li said the challenges facing industrial development come from fierce competition, rising costs, bottlenecks in technology, talent shortages and technical barriers.In terms of talents, smic actively introduces industrial talents. At present, smic has about 17,800 employees and nearly 550 foreign employees in China.In addition to front-line employees, 80% of them have bachelor's degree or above.It has a senior research and development team from about 2000 years old, with 5 experts of "central thousand talents plan", 1 expert of "Shanghai thousand talents plan", 2 experts of "national ten thousand talents plan" and 1 expert of "national ten thousand talents plan".
Smic is popular with customers both in China and abroad.At present, 70% of domestic design companies are willing to choose smic as the first-generation industrial partner.Since 2018, sales in China have accounted for more than 50%.Top 10 customers, 4 Chinese customers, 4 north American customers, 2 Eurasian customers.Communication and consumer electronics applications terminal sales accounted for more than 80%.
Smic has also strengthened the vertical integration in actively improving the industrial chain layout, such as the establishment of smic changdian, strengthening the linkage and vertical integration of the industrial chain, and realizing the "manufacturing + convex block + packaging" manufacturing entire industrial chain layout.