Shanghai Silicon Industry: 300mm wafer production capacity has reached 250000 wafers / month downstream demand increases related party transaction quota

On the evening of August 27th, Shanghai Silicon Industry, a large domestic silicon wafer manufacturer, released its semi-annual report for 2021. During the reporting period, the company achieved a revenue of 1.123 billion yuan, an increase of 31.44% over the same period last year, a net profit of 105 million yuan, and a loss of 82.5942 million yuan in the first half of 2020. It turned losses into profits during the reporting period. In addition, the company's net profit after deducting from its mother was-76.5263 million yuan, which was further narrowed compared with the same period last year.

As for the reason for the year-on-year increase in revenue, the Shanghai Silicon Industry said that on the one hand, due to the strong demand in the semiconductor market in the first half of 2021, on the other hand, due to the release of the company's own capacity, especially the revenue of the 300mm semiconductor wafer division increased significantly. The return of net profit to profit is mainly due to the increase in operating income and the increase of gross profit margin.

In response to the strong growth of domestic and foreign downstream market demand, the world's major wafer manufacturers are increasing capital expenditure, capacity construction or technology upgrading. As an upstream semiconductor wafer supplier, Shanghai silicon industry benefits from the improvement of the prosperity of the industry, and the demand increases rapidly, which is also testing the company's capacity supply.

According to the semi-annual report, by the end of this reporting period, Shanghai Silicon Industry subsidiary Shanghai Xinyi 300mm semiconductor wafer production capacity has reached 250000 wafers per month, which is "close at hand" to its target of achieving 300000 wafers per month by the end of 2021. In addition, Shanghai Silicon Industry subsidiary Xinao Technology and Okmetic200mm and below polished wafers and epitaxial wafers have a combined production capacity of more than 400000 wafers per month; subsidiaries Xinao Technology and Okmetic200mm and below SOI wafers have a combined production capacity of more than 50, 000 wafers per month.

With the increase in production capacity, the Shanghai silicon industry said in its semi-annual report that the capacity utilization of its 200mm and following products (including SOI silicon wafers) remained high, and the capacity utilization and shipments of 300mm silicon wafers also increased significantly. By the end of the reporting period, the company's 300mm wafer history accumulated shipments of more than 3 million wafers, production capacity climbing and volume speed, shipments to a new level.

Although the Shanghai silicon industry still did not make a profit during the reporting period, the company said that the gross profit margin, EBITDA profit margin and net profit margin of its 300mm large silicon wafer business have all been greatly improved.

A reporter from Science and Technology Innovation Board Daily noted that while disclosing the semi-annual report, Shanghai Silicon Industry also issued an announcement on increasing the estimated quota of daily related party transactions in 2021. among them, the company's quota for selling goods to related parties Wuhan Xinxin, Changjiang Storage, SMIC and its affiliated companies has been raised from 59 million yuan, 96 million yuan and 116 million yuan in 2021 to 97 million yuan, 160 million yuan and 160 million yuan respectively. The main reason for the adjustment is the increase in market demand.

In response to the strong demand downstream, the Shanghai silicon industry also continues to expand production capacity. During the reporting period, the company's fixed additional 5 billion yuan project has passed the examination of the Shanghai Stock Exchange and entered the registration stage of the CSRC, one of which is to increase the monthly 300mm wafer production capacity by a further 300000 wafers / month on the basis of the Shanghai Xinyi 300000 wafer / month production capacity. After the completion of the project, the company's 300mm wafer production capacity will reach 600000 wafers / month.

In addition, during the reporting period, Shanghai Silicon Industry subsidiary Okmetic and Xinao Technology further increased the production capacity of products of 200mm and below sizes by removing the bottleneck and improving production efficiency, optimized the product structure, and launched a relatively scarce moderate production expansion plan for automotive electronics epitaxial wafers to meet the needs of domestic downstream users.

In terms of product certification, Shanghai Silicon Industry said that the number of product specifications that the company can supply has further increased, and the advanced level of the process that can be applied to the company's products has been further improved. "with the change of the relationship between supply and demand in the market and the further expansion of the supply gap, at the same time, with the accumulation and improvement of the company's technical level, the cycle of the company's product certification has begun to show a trend of shortening. Help to speed up the rapid introduction and volume of the company's products in downstream customers.

In terms of R & D investment, during the reporting period, the R & D expenditure of the silicon industry in Shanghai was 53.3035 million yuan, accounting for 4.75% of the operating income; in the same period last year, the R & D expenditure was 64.7313 million yuan, accounting for 7.58% of the operating income. The company said that the reduction in R & D spending is mainly due to the completion of some of the company's 300mm large silicon wafer R & D projects and the new phase of the project is in the process of being established.

In terms of overseas investment, during the reporting period, Shanghai Silicon Industry participated in the establishment of Guangzhou Xinrui Optical Mask Technology Co., Ltd. in the form of a special equity investment fund, which will build an advanced optical mask production line for 40-28nm and above, so as to solve the problem that there are no commercial advanced optical mask local suppliers in China.