China Resources Micro: the listing of the company reflects Science and Technology Innovation Board's inclusiveness and hopes that the plate will maintain the content of "hard technology".

As of June 29, Science and Technology Innovation Board had a total of 300 listed enterprises, with a total share capital of 97.292 billion shares, with a total market capitalization of 4.62 trillion yuan. As an early batch of enterprises to achieve the listing of Science and Technology Innovation Board, China Resources Micro feels most deeply that Science and Technology Innovation Board embodies the inclusiveness.

At the institutional level, although the CSRC has made licensing provisions for the main board listing of red-chip enterprises, there are no red-chip enterprises listed on the main board at present. While Science and Technology Innovation Board allows red-chip companies to go public, the listing criteria only involve "market capitalization, operating income in the recent year", and the standards are more lenient than those on the motherboard.

Huarunwei, which was listed in Science and Technology Innovation Board on February 27, 2020, is not only Science and Technology Innovation Board's first, but also the first Chinese A-share red-chip company to list. As of June 2021, there were three red-chip companies listed in Science and Technology Innovation Board. They are "No. 9 Company, SMIC and China Resources Micro".

China Resources Micro Dong Secret told Science and Technology Innovation Board Daily that "China Resources Micro is the beneficiary of Science and Technology Innovation Board. In more than a year, the company raised about 9.2 billion yuan from Kechuang Board, which fully reflects Science and Technology Innovation Board's inclusiveness and review speed." With the second anniversary of Science and Technology Innovation Board's operation, Huarunwei also suggested that Science and Technology Innovation Board continue to enhance the quality of "hard science and technology." at the same time, Science and Technology Innovation Board should be able to form an automatic elimination mechanism and maintain plate attributes. let the enterprise's hard technology content is higher, at the same time the enterprise homogenization situation is less.

New GAN products may be launched in the second half of the year

At present, the global semiconductor industry is in the stage of continuous rise in prosperity. As a semiconductor enterprise with comprehensive influence in China, and also a leading domestic power semiconductor IDM enterprise, Huarun Micro's performance is also showing high growth.

In 2020, China Resources Micro achieved a revenue of 6.977 billion yuan, an increase of 21.5% over the same period last year, and a net profit of 964 million yuan, an increase of 140.46% over the same period last year. In the first quarter of this year, the company achieved revenue of 2.045 billion yuan, an increase of 4.792 billion yuan over the same period last year, and a net profit of 400 million yuan, an increase of 313.52% over the same period last year.

Huarun Micro's main business can be divided into two business segments: products and solutions (power semiconductors, smart sensors and intelligent control) and manufacturing and services (wafer manufacturing, packaging testing and mask manufacturing). Power semiconductors account for more than 80% of the product segment and are the company's most important products.

Power semiconductor products can be divided into power IC and power devices, the latter is typically represented by MOSFET and IGBT, and can be widely used in new energy vehicles, industrial control, computer and other fields. And China Resources Micro is the leading supplier of domestic MOSFET, its MOSFET products can cover the full range of low, medium and high voltage within the range of 100V-1500V, and the company has achieved MOSFET sales of more than 2 billion yuan in 2020.

It is worth noting that Infineon is the absolute leader in the power semiconductor industry all over the world, while the localization process of power semiconductors in China is still in its infancy. A reporter from Science and Technology Innovation Board Daily learned in an interview that as the largest company in China in terms of sales of power devices, China Resources Micro currently accounts for about 8% of the market share in China's MOSFET field, "which also means that there is still a lot of room for improvement in the localization of MOSFET."

In addition to MOSFET products, China Resources Micro's sales revenue of IGBT products also exceeded 100 million yuan in 2020. The company's IGBT technology is also being upgraded from 6 inches to 8 inches. In a recent institutional survey, the company said that the main increment of, (IGBT) in the future will come from breakthroughs in the field of product applications and the volume of IGBT module products. The company's module products have completed customer verification in industrial power supply and have started to sell.

In order to further expand the market space of power device products, on the basis of the original product structure, Huarun Micro is also actively laying out the third generation semiconductors.

When investigating China Resources Micro, a reporter from Science and Technology Innovation Board Daily learned that the company announced China's first 6-inch commercial SiC wafer production line in 2020, and launched SiC diode products that year, which are mainly used in industrial control and other fields. At present, the company has a monthly production capacity of about 1000 pieces.

In addition, China Resources Micro expects to launch further SiC MOSFET products this year, which can focus on applications such as new energy vehicles and charging piles. In addition, Huarun Micro has also taken a stake in a number of SiC material side companies, among which for SiC epitaxial wafers, the company has invested in Xiamen Hantiancheng, which is the first domestic manufacturer of industrialized 3 -, 4-and 6-inch silicon carbide epitaxial wafers, and has also acquired a stake in Huawei's Hubble Technology.

In terms of GAN, China Resources Micro's GAN industrial chain extends to product design, including research and development of Synchronize, the 6-inch and 8-inch platforms of GAN products. The reporter learned that, or in the second half of this year, China Resources Micro's new GAN products will be jointly released with SiC new products.

Production capacity has increased by 10% this year.

The wave of core shortage that has continued since 2020 has also led to an imbalance between supply and demand in the power semiconductor industry. In addition, with the sharp increase in demand for power semiconductors in new energy vehicles and consumer electronics industries, wafer manufacturing and closed testing capacity continues to be tight, resulting in a series of price increases in the semiconductor industry chain.

In June this year, including Infineon, Amyson, ST and other power semiconductor companies have said that they will raise product prices, and some domestic power semiconductor manufacturers have also issued a price increase letter.

A reporter from Science and Technology Innovation Board Daily learned from Huarun Weibo that the price of the company's power products is in a new round of adjustment and will be adjusted according to changes in the market. "the current situation has been maintained in the third quarter and the second half of this year, and there should not be much change."

At a time when supply and demand are out of balance, the most important thing is to expand production capacity, increase supply and seize the market.

In terms of capacity layout, China Resources Micro has an 8-inch and 3 6-inch wafer production lines in Wuxi, an 8-inch wafer production line and a 12-inch wafer production line (under construction) in Chongqing. According to the company's 2020 annual report, the 6-inch production capacity is about 2.48 million tablets per year, and the 8-inch production capacity is about 1.44 million tablets.

The company's secretary revealed that this year's production capacity will increase by about 10% compared with 2020.

China Resources Micro's capacity growth in 2022 benefited from the contribution of Chongqing's 12-inch production capacity.

Huarun Micro announced in June this year that it plans to work with the second phase of the big fund to develop 12-inch production capacity. The 12-inch project is expected to eventually achieve a production capacity of 30,000 pieces per month, and supporting the construction of 12-inch epitaxial and thin-wafer process capability. in the future, it will be mainly used in the production of its own power devices.

In order to improve the company's future yield, cooperate with 12-inch production capacity, and reduce the outsourcing of closed testing links, China Resources Micro also raised no more than 5 billion yuan through a fixed increase, of which 3.8 billion yuan will be used for the construction of a closed test base for China Resources micro-power semiconductors for power device packaging, advanced packaging and panel-level packaging.

Huachuang Securities issued a research report that the steady expansion of production capacity further consolidated China Resources Micro's leading position in the field of power semiconductors.

It is worth noting that Huarun Micro's production capacity not only produces its own products, but also leaves part of the company's closed test production line and wafer production line with contract manufacturing. "the main purpose of this is to keep in touch with the more advanced product design companies in the market through the contract manufacturing business, to obtain the most advanced technology trends in the market, and to fully maintain communication with the market, rather than the fully closed IDM company," the company said.

In terms of customer selection, China Resources Weibo said that it will choose customers with a long history of cooperation; secondly, the company will choose to cooperate with potential and customers, that is, although the scale is small and the establishment time is short, but its products have characteristics, unique technical capabilities, and can improve the company's process platform, and so on.