Japanese emerging silicon wafer manufacturing companies are expanding their business in China on a large scale.

Published: Mar 16, 2021 13:28
[Japanese emerging silicon wafer manufacturing companies are expanding their business in China on a large scale] at present, some Japanese silicon wafer factories such as Ferrotec and RS Technologies are expanding their business in China on a large scale. Two new semiconductor wafer manufacturers in Japan are expanding their operations in China, hoping to expand financing channels with the help of the Dongfeng of the semiconductor program supported by the Chinese government.

At present, some Japanese silicon wafer factories such as Ferrotec and RS Technologies are expanding their business in China on a large scale.

According to Japan's Sankei Shimbun on March 16, two new semiconductor wafer manufacturers in Japan are expanding their operations in China, hoping to expand financing channels with the help of the Dongfeng of the semiconductor program supported by the Chinese government.

Tokyo-based Ferrotec Holdings began producing wafers in China in 2002, and its products are mainly related to earlier processes.

He Xianhan, president of Ferrotec, said: "We strive to catch up with the world's advanced technology within five years."

Last year, Ferrotec sold part of its Chinese wafer subsidiary, raising about 70 billion yen ($641 million) from the local public and private sectors, almost as much as the company's market capitalization of 80 billion yen.

"the investment we have attracted is several times the amount subscribed," he said. "

The money will mainly be used to manufacture 12-inch wafers for advanced semiconductors. The company plans to start mass production in Hangzhou this fiscal year and expects to produce 100000 tablets a month by 2022.

The expansion of the wafer business is expected to cost the company 150 billion yen, which is too large for Ferrotec to bear on its own. After the sale, Ferrotec's stake in its wafer subsidiary has fallen below 30 per cent.

Japan's Shinyue Chemical and SUMCO account for 55% of the global wafer market, and its main customers are Intel and other top chipmakers. Taiwan's global crystal (GlobalWafers), which ranks third, will also account for about 30 per cent of the global crystal market after its acquisition of Germany-based Siltronic, last year.

In addition, Nagayoshi Ho, president of RS Technologies, another Japanese silicon wafer company, said: "We strive to overtake SUMCO by 2025." The company, which is also headquartered in Tokyo, mainly produces recycled wafers for testing equipment, and has gradually expanded to the production of normal wafers after 2018.

December 18, 2019, Shandong Dezhou Municipal Government and Youyan Technology Group Co., Ltd., RS Technologies, Dezhou HUIDA Semiconductor Equity Investment Fund Partnership jointly signed a 12-inch large wafer industrialization project for integrated circuits.

The company hopes to produce 10,000 wafers a month on a pilot basis in Texas later this year, eventually reaching 30,000 a month.

Although China also has silicon wafer factories like Central Semiconductor that can achieve mass production, there is a lack of heavyweight competitive enterprises. Ferrotec and RS hope that the Chinese government will increase subsidies in this area.

Both RS and Ferrotec plan to list their Chinese manufacturing units on mainland exchanges.

Nikkei Asia Review also pointed out that many analysts in the industry believe that although Ferrotec can independently produce the previous generation of wafers, there is still a gap of more than ten years compared with the most advanced level in the world, and first-class large enterprises produce about 2 million 12-inch wafers per month, and their output cannot compete with them.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Chromium Flash] CBAM Drives Ferrochrome Producers to Adopt EPDs, Enhancing Global Trade Competitiveness
3 hours ago
[SMM Chromium Flash] CBAM Drives Ferrochrome Producers to Adopt EPDs, Enhancing Global Trade Competitiveness
Read More
[SMM Chromium Flash] CBAM Drives Ferrochrome Producers to Adopt EPDs, Enhancing Global Trade Competitiveness
[SMM Chromium Flash] CBAM Drives Ferrochrome Producers to Adopt EPDs, Enhancing Global Trade Competitiveness
Kazakhstan's Kazchrome, the ferrochrome producer owned by Eurasian Resources Group, holds an internationally registered Environmental Product Declaration for its high-carbon ferrochrome, confirmed directly on the official EPD International registry as valid since 13 March 2026. The declaration, based on an independent lifecycle assessment by SGS, verifies the environmental footprint of ferrochrome produced at Kazchrome's Aktobe facilities across the full production cycle — from raw material mining and transportation through to water and energy consumption. SGS's ecology business manager for Kazakhstan and the Caspian subregion, Ilya Korlyakov, has said holding an EPD is becoming a meaningful competitive advantage as carbon requirements tighten in international markets. Kazchrome joins a small but growing list of ferrochrome producers with registered EPDs. Finland's Outokumpu was the first in the industry, publishing its declaration in July 2023, explicitly citing the EU's Carbon Border Adjustment Mechanism as the driver behind growing demand for verified low-carbon material. The EPD International registry also lists a Turkish ferrochrome declaration, registered through EPD Türkiye and valid since March 2026, alongside at least one other registered ferrochrome entry. With CBAM's transitional phase now well underway, EPDs are increasingly functioning as a practical requirement for import documentation into European markets rather than a purely voluntary sustainability signal.
3 hours ago
[SMM Chromium Flash] 6 Months After Lion Smelter's First Tap, South Africa's Ferrochrome Recovery Is Still Taking Shape
5 hours ago
[SMM Chromium Flash] 6 Months After Lion Smelter's First Tap, South Africa's Ferrochrome Recovery Is Still Taking Shape
Read More
[SMM Chromium Flash] 6 Months After Lion Smelter's First Tap, South Africa's Ferrochrome Recovery Is Still Taking Shape
[SMM Chromium Flash] 6 Months After Lion Smelter's First Tap, South Africa's Ferrochrome Recovery Is Still Taking Shape
South Africa's ferrochrome industry is still working through the recovery that began on 16 February 2026, when the Glencore-Merafe Chrome Venture's Lion Smelter in Steelpoort, Limpopo, achieved its first ferrochrome production tap after recommissioning 50% of its operating capacity. Six months on, that restart stands as the clear origin point of a recovery trajectory now visible across both Venture partners' own subsequent disclosures — even as the industry's underlying tariff economics remain only partially resolved. Lion's restart followed the National Energy Regulator of South Africa's approval of a 12-month interim electricity tariff of 87.74c/kWh, a steep cut from the roughly R2/kWh smelters had been paying, though the Venture said at the time that even this rate would not support Lion, Boshoek or Wonderkop sustainably over the long term — all three, it said, needed a tariff of 62c/kWh to be commercially viable. That gap defined the following months: NERSA approved the 62c/kWh tariff at the end of May, and the Section 189 retrenchment process affecting the smelters was formally withdrawn in June. At the time of Lion's restart, South Africa's ferrochrome sector had just 11 of its 66 furnaces operating nationally, against roughly 4.8 million tonnes of installed annual capacity — a level of distress industry voices warned could push output down toward 1 million tonnes in 2026 without tariff relief. The Venture's own subsequent reporting confirms Lion's tap as the start of a real, if gradual, recovery rather than a one-off event. Glencore's H1 2026 production report showed attributable ferrochrome output climbing from effectively nil in Q4 2025 and 13,000 tonnes in Q1 2026 to 97,000 tonnes in Q2 — a trajectory beginning exactly at Lion's February restart, with Glencore explicitly citing Lion's phased restart as the driver. Merafe's own H1 2026 results, released in full on 11 August, corroborate the same pattern from its 20.5% share of the Venture: chrome ore sales rose 75% to 380,000 tonnes and ferrochrome sales held nearly flat despite a 75% production collapse, with the company crediting higher prices and higher volumes sold, alongside continuing restart progress at Boshoek and Wonderkop, for the resulting profit more than doubling to R512 million. Taken together, the two companies' own numbers show that Lion's February tap was the first concrete evidence South Africa's ferrochrome collapse had found a floor, and that the subsequent tariff resolution and smelter restarts through H1 2026 have begun translating into real financial recovery for the Venture — even as the sector's longer-term competitiveness against lower-cost producers elsewhere remains an open question SMM continues to track.
5 hours ago
[SMM Chromium Flash] Global Chrome Ore Departures Fall 37.45% WoW to 448,500 mt, Dragged by Maputo
11 hours ago
[SMM Chromium Flash] Global Chrome Ore Departures Fall 37.45% WoW to 448,500 mt, Dragged by Maputo
Read More
[SMM Chromium Flash] Global Chrome Ore Departures Fall 37.45% WoW to 448,500 mt, Dragged by Maputo
[SMM Chromium Flash] Global Chrome Ore Departures Fall 37.45% WoW to 448,500 mt, Dragged by Maputo
Global chrome ore departures from major export ports totaled 448,500 mt in the week ended August 14, down 37.45% week-on-week, according to SMM's latest data. The pullback follows an unusually strong prior week in which total departures reached 717,000 mt, suggesting the latest figure reflects a partial normalization after elevated shipments rather than a sudden shift in underlying demand. Maputo remained the dominant corridor even as its volume eased to 333,200 mt from 496,200 mt, still accounting for roughly 74% of total departures. The decline coincided with unfavorable weather at the port, with freezing temperatures, heavy rains, and strong winds reported during the week, likely disrupting loading operations and contributing to the lower volume. Even so, Maputo's continued outsized share in a down week underscores Mozambique's growing structural weight in the seaborne chrome ore trade alongside, and increasingly rivaling, traditional South African export routes. Richards Bay saw a sharper proportional decline, falling to 82,200 mt from 171,500 mt, a drop-off that outpaced the market-wide contraction. The decline was likely affected by unfavorable coastal conditions, including strong winds and rain, which can slow vessel loading and berth operations at the port. Mersin departures also eased, to 33,100 mt from 49,300 mt, in line with its role as a smaller secondary loading point rather than a primary export corridor. Beira again recorded no chrome ore departures, indicating the port remains inactive in the current shipping cycle. Taken together, the week's data points to a weather-affected cooling in seaborne chrome ore flows from Southern Africa after a strong prior week, with Maputo's resilience relative to Richards Bay reinforcing the port's increasing centrality to regional export logistics.
11 hours ago
Japanese emerging silicon wafer manufacturing companies are expanding their business in China on a large scale. - Shanghai Metals Market (SMM)