Domestic wafers replace open increment downstream CMP polishing consumables to increase capital and expand production.

With the acceleration of domestic wafer substitution, domestic CMP polishing consumables also ushered in the peak of production expansion. Recently, the relevant person in charge of Dinglong shares (300054.SZ) said that the continuous expansion of the wafer factory led to the outbreak of the company's demand for polishing pads. At present, the total production capacity of the first and second phases of the company is 300000 pieces / year, and the proposed third phase of CMP polishing pad is expected to increase the annual production capacity of 50w sheets for the company.

In addition, CMP polishing fluid leader Anji Technology (688019.SH) is also raising funds to expand the production capacity of CMP polishing fluid and photoresist remover and improve product performance.

Guoxin Securities said that 2020 is the first year of the rise of domestic wafer manufacturers, and according to market estimates, the global CMP market has a compound growth rate of about 6 per cent. With the large-scale production of domestic wafer factories in the future, it is estimated that the scale of China's CMP pad market will grow by more than 10% in the next five years.

Dragon head stock 567 million yuan to step up production expansion

The enthusiasm for chip expansion has been extended to upstream consumables.

Recently, Dinglong Co., Ltd. said that it intends to agree to Hubei Dinglong Huisheng New Materials Co., Ltd. (provisional main body) to build Dinglong Qianjiang Optoelectronic Semiconductor Materials Industry Park (tentative name). The industrial park is mainly for the integrated circuit CMP polishing pad project (the third phase of the project 500000 pieces / year), and the annual production of 10, 000 tons of integrated circuit cleaning fluid project.

"at present, it is still in the stage of land recruitment, auction and hanging, and construction will begin after the Spring Festival, and it is expected to be put into production in 30 months." Dinglong shares related staff, the company's CMP polishing pad business is growing rapidly, production expansion is to deal with the capacity gap in advance.

The announcement shows that the third phase of the project plans to build a new workshop covering an area of 6000 square meters, purchasing and installing 43 sets of purification system equipment, laminating machines, polishing machines and other instruments and equipment, with an investment of 167 million yuan; annual production of 10,000 tons of integrated circuit manufacturing cleaning fluid project is the purchase of mixing machines, automatic feeding machines, Zeta potentiometers, particle counters and other instruments and equipment 92 sets. The initial investment is 200 million yuan, and the total planned investment of the project is expected to be 400 million yuan, which will be implemented in two phases, with a total investment of 567 million yuan.

Driven by the expansion of downstream wafer factories and the continuous expansion of panel demand, Anji Technology has also raised 303 million yuan to expand the production capacity of CMP polishing fluid and photoresist remover and improve product performance, in order to speed up the research and development and industrialization of the company's new products.

Anji Technology Securities Department told the Financial Associated Press that the company is optimistic about the future of the industry and is now fulfilling customer needs according to orders. As for the details of the company's performance, the person said that the performance notice will be announced before the end of January.

Polishing consumables may increase the quantity and price together.

After the increase in production capacity, the price of polishing pad may fluctuate.

According to the above Dinglong people, at present, the average price of polishing pads for 12-inch wafers is about 3500 yuan, and the price of polishing pads for 8-inch wafers is about 2000 yuan. in the future, with the increase in demand, production capacity has not yet been released, or there is room for price increases.

Data show that CMP materials are the core consumables of chip manufacturing, accounting for about 7% of chip manufacturing costs, of which polishing fluid and polishing pads are the most core materials, accounting for 49% and 33% respectively.

According to the CITIC Construction Investment Research report, the semiconductor demand dividend superimposed industrial transfer is good for the upstream materials market, while technology iterations promote the continuous growth of the polishing materials market. The huge domestic supply and demand gap brings a strong domestic alternative demand, which is good for domestic polishing material enterprises.

"before the downstream for the security of the supply chain, will not take the initiative to use domestic polishing pad, but now the awareness of domestic replacement, our spring has come." The above-mentioned Dinglong shares are introduced. Data show that Dinglong's CMP mats sold 3.14 million yuan in 2018, 12.3 million yuan in 2019 and 21.02 million yuan in the first half of 2020, a rapid growth.

Guoxin Securities Research also said that the domestic CMP polishing pad technology has the ability to replace overseas products, domestic suppliers are about to usher in a leap-forward development.