Etching equipment has been used in 5nm production line! China Micro Corporation adheres to the three-dimensional development strategy

Yin Zhiyao, chairman and general manager of China Micro Corporation, said in a speech that in 2020, although the sudden COVID-19 epidemic and the turbulence of the international situation had both positive and negative effects on the development of the semiconductor industry at home and abroad, China Micro Corporation successfully responded to new challenges and made gratifying progress in 2020 by taking advantage of new opportunities. With the gradual acceleration of the pace of economic recovery in the second half of 2020, the global semiconductor industry is showing restorative growth, with the expansion of new markets such as new energy vehicles, 5G communications, big data, cloud computing, artificial intelligence and other new markets, the integrated circuit and pan-semiconductor industry and the demand for semiconductor equipment has shown a trend of rapid growth.

In 2020, the company aims at the forefront of related industries and continues to implement the three-dimensional development strategy. Through organic growth and epitaxial expansion, the company deeply ploughs the field of key integrated circuit equipment, expands its application in the field of pan-semiconductor key equipment, and explores opportunities in other emerging fields. to promote the company to achieve high-speed, stable and safe development. On the one hand, the company continues to increase R & D investment and business development efforts, and has made great breakthroughs and progress in product research and development of plasma etching equipment and MOCVD equipment, market layout, new business investment and many other aspects, and the products have been continuously recognized by customers at home and abroad, providing a strong support for the company's sustained and healthy development.

On the other hand, taking into account the extension of the company, while focusing on the company's core business integrated circuit equipment, actively explore the layout of new performance growth points, subsidiaries in the micro-micro chain and the company to participate in the investment target companies have made fruitful development in their respective areas, and the cooperation between the company and relevant equipment companies at home and abroad has also made a breakthrough.

In 2020, the company's operating income increased by 16.76% over the same period last year to 2.273 billion yuan, and its net profit increased by 161.02% over the same period last year to 492 million yuan. The revenue of the company's main equipment product, plasma etching equipment, increased by 58.5% in 2020, of which the number of sales of new product inductive plasma ICP etching machines increased by 100% compared with 2019.

Taking fully into account that the company is currently in a period of development, R & D funds need to continue to increase investment, the scale of operation continues to expand, the company's plant is in urgent need of construction, the capital demand is greater. In order to maintain the needs of the company's sustainable development and capital liquidity, to ensure that the company has the necessary and sufficient funds to support the company's development, and to take into account the long-term and fundamental interests of shareholders, according to the provisions of relevant laws, regulations, normative documents and articles of association, the company will not distribute profits and the capital reserve will not increase in 2020.

Aim at the forefront of world science and technology and adhere to the three-dimensional development strategy

In order to reduce the impact of industry volatility on the company, Yin Zhiyao said that China Micro Corporation will adopt a three-dimensional development strategy in the next decade. The first dimension is from the current plasma etching equipment to chemical film equipment, etching and film-related testing and other key equipment. The second dimension is the expansion of products in the field of pan-semiconductor devices, from etching devices that have been developed for the manufacture of MEMS and CIS image sensors, MOCVD devices for manufacturing Blu-ray LED, to more micro device processing equipment, and equipment products for manufacturing deep ultraviolet LED, Mini-LED, Micro-LED and other micro devices. The third dimension is to explore the new applications of core technologies in environmental protection, industrial Internet and so on.

In the exchange and interaction session, many investors enthusiastically asked questions to China Micro Corporation. With regard to upstream parts, China Micro pointed out that the company has established a comprehensive supplier evaluation management system, the company has a large number of major parts suppliers and maintains a good cooperative relationship, and the proportion of the purchase amount of a single supplier is not high. among them, the procurement of core components adopts a multi-vendor strategy, which is distributed all over the world.

On whether the lithography machine equipment will be developed, Yin Zhiyao pointed out that the company's current products are mainly plasma etching equipment and film deposition and other key equipment produced by semiconductor front, and gradually develop advanced packaging, MEMS, blue-green light and UV LED, Mini LED, Micro LED and other pan-semiconductor equipment products. The company has formed a layout plan to expand its business in the future in three dimensions: to dig deep into the field of key equipment in integrated circuits, to expand its application in the field of pan-semiconductor key equipment, and to explore opportunities in other emerging areas. Among them, in the field of integrated circuit equipment, the company is considering expanding its competitive advantage in the field of etching equipment to film, testing and other key equipment fields. at present, the company has no plans to develop lithography machines.

In terms of customer introduction, Yin Zhiyao pointed out that China Micro's plasma etching equipment has been used in international front-line customers from 65nm to 14nm, 7nm and 5nm and other advanced integrated circuit processing and manufacturing production lines and advanced packaging production lines. The company's MOCVD equipment has been put into mass production on the production line of the industry's leading customers, and the company has become the world's leading gallium nitride-based LED equipment manufacturer.

In the manufacturing process of logic integrated circuits, the 12-inch high-end etching equipment developed by the company has been used in the most advanced production lines of international well-known customers and for the processing of several key steps in devices below 5 nanometers and below; at the same time, the company continues to carry out equipment development and process optimization according to the needs of advanced integrated circuit manufacturers. In 3D NAND chip manufacturing, the company's capacitive plasma etching equipment technology has been applied to 64-layer and 128-layer mass production, inductive plasma etching equipment technology has been applied to 64-layer mass production, and the company is developing extremely high aspect ratio etching equipment and processes according to the needs of memory device customers; the company is also developing devices for more advanced etching applications according to the needs of logic device customers. The company's MOCVD equipment Prismo D-Blue and Prismo A7 can achieve the processing capacity of 14 4-inch single-cavity wafers and 34 4-inch single-cavity 4-inch epitaxial wafers respectively. The company's Prismo A7 equipment has outstanding technical strength and has occupied a leading position in the global gallium nitride-based LED MOCVD market. The company cooperates closely with many first-class LED epitaxial wafer manufacturers to achieve deep industrial integration. By the end of 2020, China Micro's equipment products have more than 1700 reactors and have achieved mass production in more than 70 production lines in Asia, Europe and China.

As to whether the company's etching equipment has been used in the 5nm chip production line, China Micro Corporation said that the company's etching equipment has indeed entered the 5nm chip production line. Aiming at the forefront of science and technology in the world, China Micro Corporation is mainly engaged in the research, development, production and sales of high-end semiconductor equipment and pan-semiconductor equipment. The company's etching equipment has been used in the world's advanced 7nm and 5nm and other advanced integrated circuit processing and manufacturing production lines and advanced packaging production lines. As an equipment company, China Micro Corporation provides customers with equipment that can process advanced devices, and assists and cooperates with customers to realize the development and production of advanced devices.