The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
China Semiconductor Industry 2009
1. SEMI半导体产业网
www.semi.org.cn
China Semiconductor and PV
Market Overview
Lily Feng
Manager, Industry Research & Statistics
SEMI China
lifeng@semi.org
SEMICON Japan
Dec 02, 2008
1
2. SEMI半导体产业网
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Agenda
• China Semiconductor Fab Equipment and Material
Market
– China Semiconductor Fab Market
– China Semiconductor Fab Material Market
– China Semiconductor Fab Equipment Market
– China Parts and Spares Market
• China PV Market
• Summary
2
3. SEMI半导体产业网
www.semi.org.cn
China Annual GDP Growth Rate (2000 – 2009)
3 Source: IQTE (Institute of Quantitative & Technical Economics )
4. SEMI半导体产业网
www.semi.org.cn
Market Drivers & Supply Chain:
The Local Supply-Demand Gap Drives “Silicon Rush” in China
China IC Market Demand vs. Domestic IC Supply in 2000-2010
8%
120
102
Portion of Domestic Supply
7%
100
China IC Market (US$B)
91
85 6%
75
80
5%
57
4%
60 48
42.9
3%
34.4
40
27.6
2%
20
20 11
1%
6.0
5.3 5.2
5.1
3.9
2.806
2.184
0.426 0.497 0.574 0.729
0%
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
CN Total IC market Demand CN Domestic Supply Domestic Supply of Total Demand(%)
Source: CSIA, iSuppli, IC Insights, SEMI Industry Research and Statistics, Oct 2008
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5. SEMI半导体产业网
www.semi.org.cn
Government is the Biggest Investor
• Semiconductor Investment:
– Government co-invested in projects with a total of
$6.6B in the past 5 years
– Government is likely to invest total of over $20B in
the next 5 years
• Suzhou, Wuxi, Shangdong, Shanghai, Shenzhen, Dalian
– Central Government will put $30B in
semiconductor (semiconductor equipment and
material are included) and software industry from
2008 to 2020
5
6. SEMI半导体产业网
www.semi.org.cn
Semiconductor Wafer Fabs in China
Legend
SMIC Fab 4 300 mm SMIC Fab 7 200 mm JSMC Fab-x 150 mm
Site in production or
SMIC Fab 5 300 mm *
ramp SMIC Fab 6 Backend
Site under construction SGNEC Fab 1 150 mm
* Site equipping CSMC-IMECAS 150 mm
Site in plan
City of population >7M
City of population <7M
Capital
Jiling
Shenyang
Nantong GMIC Fab 1 200 mm *
Wuxi Dalian
Beijing
Hynix-ST Fab C1 200 mm Intel Fab 68 300 mm
Hynix-ST Fab C1 300 mm
Hynix-ST Fab C2 300 mm *
Tianjing Suzhou Hejian Fab 1 200 mm
CSMC Fab 1 150 mm
Hejian Fab 2 300 mm
CSMC Fab 2 200 mm *
PowerChip 200 mm
CSWC Fab 2 150 mm
Kushan IC Spectrum 200 mm
Anadigics 150 mm
Xiyue Fab 1 150 mm
Xian
WXIC Fab 1 300 mm *
Cension Fab 1 200 mm
Shanghai
Chengdu
Chongqin Wuhan
ProMOS Fab x 200 mm *
ProMOS Fab X 300 mm
Leshan SMIC Fab 1 200 mm
SMIC Fab 2 200 mm
SMIC Fab 3 Backend
Fuzhou
LPSC Fab 1 150 mm GSMC Fab 1 200 mm
GSMC Fab 2 200 mm
GSMC Fab 3 300 mm
Hangzhou Silan Fab 2 150 mm
HHNEC Fab 1 200 mm
Guangzhou
Ningbo SinoMOS Fab 1 150 mm HHNEC Fab 2 200 mm
Hong Kong HHNEC Fab 1C 200 mm
HHNEC Fab x 300 mm
Fushun Microelectronics Fab 2 150 mm ASMC Fab 2 150 mm
ASMC Fab 3 200 mm
ASMC Fab 4 200 mm
BCD Fab 1 150 mm
BCD Fab 2 200 mm
Zhuhai ACSMC Fab 1 150 mm TSMC Fab 10 200 mm
Shenzhen Founder Electronics 150 mm Belling Fab 2 150 mm
Founder Electronics 150 mm SMIC Fab 8 300 mm
SMIC Fab X 300 mm SMIC Fab 9 CIS
SMIC Fab X 200 mm SMIC Fab 10 Photo.V
6 Source: SEMI (April 2008)
7. SEMI半导体产业网
www.semi.org.cn
China Fab Capacity by Wafer Size
Fab Capacity in China by Wafer Size
1600
1400
K wpm (in 200mm wafer equivalent)
1200
1000
800
600
400
200
0
2001 2002 2003 2004 2005 2006 2007 2008(F) 2009(F) 2010(F)
300mm Capacity 200mm Capacity 150mm Capacity 125mm Capacity
(k wpm in 200mm wafer equivalent, 2001-2010
7 Source: SEMI Industry Research and Statistics, Nov. 2008
8. SEMI半导体产业网
www.semi.org.cn
Fab Material Break Down in China
Market
Fab Material Break Dow n in China Market (US$ Million)
1,600
1,400
1,200
1,000
800
600
400
200
0
2003 2004 2005 2006 2007 2008 (F) 2009 (F) 2010 (F)
Silicon Photomasks Photoresists
Photoresist Ancilliaries Gases Wet Chemicals
Targets CMP Other
8 Source: SEMI Industry Research and Statistics, Nov.2008
9. SEMI半导体产业网
www.semi.org.cn
Wafer Fab Process Equipment
Spending in China
Wafer Processing Equipment Spending in China
3000 120%
% of New Eq. Spending on 300mm
2500 100%
2000 80%
US$ Million
1500 60%
1000 40%
500 20%
0 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008(F) 2009(F) 2010(F)
New Wafer Process Equipment Total Wafer Process Equipment 300mm Tools (% of New Equipment)
Source: SEMI Industry Research and Statistics, Nov.2008
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10. SEMI半导体产业网
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Category of Domestic Fab Equipment
Supplier
• Traditional Fab Equipment Supplier
– Research Institution Rooted
– State Owned Company
• New Fab Equipment Supplier
– Experienced Overseas Returnee
– Owner of Key Government Project
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11. SEMI半导体产业网
www.semi.org.cn
Domestic Fab Equipment Supplier Profile
-- Differentiation between Two Types of Supplier
Traditional
Differentiation New Supplier
Supplier
Company Size ~1000 people ~200 people
Master & PhD<=10% / 50%>=Master /
Talent
Low labor cost High labor cost
Capital & Revenue Self-Sufficiency Funding/VC/Loan
Target Market Mainland-China Global Market
100-200mm/ 200-300mm/
Technology
>=0.25um <=100nm
Self-Developed/
IP
Collaboration Self-Developed/License
11 Source: “China Domestic Fab Equipment Suppliers” 2008 June, SEMI
13. SEMI半导体产业网
www.semi.org.cn
China Leading Domestic Supplers
Sales Break Down
2005 2006 2007 2008(E)
Semiconductor Equipment Growth Ratio 21% 38% 32% 1%
Solar Equipment Growth Ratio 9% 52% 75% 57%
Total Growth Ratio 16% 42% 40% 50%
13 Source: “China Domestic Fab Equipment Suppliers” 2008 June, SEMI
14. SEMI半导体产业网
www.semi.org.cn
China Spare Parts Market Driving
Force
• Local Manufacturing Capability
– Flow Control
– Power Supply
– Quartz
– Ceramic
– Vacuum
– Machining
– Material Handling
• Driving Force
– Fab
– Local Equipment Supplier
– Oversea Equipment OEM
– Used Equipment Supplier
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15. SEMI半导体产业网
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Localization Case Study
Locally
Imported
Localized Parts and manufactured
Subsystem Category
Cost Volume Cost
Volume
Machining System 90% 7% 10%
93%
Mechanical System <10% >90% >90%
<10%
Electronical System 29% 68% 71%
32%
Control Software - -
100% 100%
15
16. SEMI半导体产业网
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Challenge VS. Opportunity
• Management Mind Set
• Standard Operation Process - Consistency
• Technology Challenge
– Special Processes
– Raw Material (Aluminium /Ceramic /Quartz /Nickel)
• Intellectual Property
16
18. SEMI半导体产业网
www.semi.org.cn
Agenda
• China Semiconductor Fab Equipment and Material
Market
– China Semiconductor Fab Market
– China Semiconductor Fab Material Market
– China Semiconductor Fab Equipment Market
– China Parts and Spares Market
• China PV Market
• Summary
18
19. SEMI半导体产业网
www.semi.org.cn
Polysilicon Project in China
Linzhou Renesola JV 210T
Luoyang China Silicon 900T
Xining Asia Silicon 0T
Xuzhou Zhong
Neng(GCL) 1500T
Yangzhou Shunda 50T
YaAn YongWang 50T Shanghai Lengguang 45T
E`mei 350T
Leshan Xinguang 800T
Leshan Yongxiang 250T
Wuxi Zhongcai 280T
Leshan Dongqi 50T
Xinyu LDK Solar 15-
Chongqing Daco group 400T
25T
Yichang Nanbo(CSG) 30T
19 Source: SEMI
20. SEMI半导体产业网
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China Solar Grade Silicon Demand &
Supply
20 Source: SEMI, Company Report, Solarbuzz
21. SEMI半导体产业网
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Solar Cell Manufacturers in China
2008 / 2009
Yingli 400MW / 600MW
Jing Ao 600MW / 1000MW
2008 / 2009
Suntech 1000MW / 1000MW
SolarFun 360MW / 420MW
China Energy 320MW / 480MW
CSI 270MW / 400MW
Jetion 100MW / 100MW
Trina Solar 350MW / 500MW
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22. SEMI半导体产业网
www.semi.org.cn
China VS. Worldwide Solar Cell
Production
China VS Worldwide Solar Cell Production
12000
10000
8000
6000
4000
2000
0
2004 2005 2006 2007 2008(E) 2009(F) 2010(F)
CN Production WW Installed WW Production
2004 2005 2006 2007
145 420 1050
CN Production (MW) 53
CN of WW Production (MW) 5% 9% 20% 26%
22 Source: SEMI, Solarbuzz, Glodman Sachs
23. SEMI半导体产业网
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Summary
• China semiconductor fab capacity will continuous grow with the support
from government in long term.
• New semiconductor fabs added China will be mainly 200-300mm fabs,
which will total >83% of total fab capacity by 2010.
• 300 mm equipment will represent most of the new wafer equipment
spending in China. Domestic equipment suppliers have started selling
300mm equipment.
• Semiconductor equipment and material players benefit from Solar
Industry.
• With the demand in solar cell manufacturing, a very large number of
polysilicon projects are now running in China. Spot market silicon price
drop about 50% in the past few weeks.
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