21st century business herald reporter Zhang Sai Nan reporting from Shanghai

at the end of 2023, Shanghai silicon industry (688126) announced a large project of 9.1 billion yuan.

Shanghai Silicon Industry Announcement shows that the company's wholly-owned subsidiary Shanghai Xinsheng Semiconductor Technology Co., Ltd. (hereinafter referred to as "Shanghai Xinsheng") plans to sign the "About Semiconductor" with Taiyuan Municipal People's Government and Taiyuan Zhongbei High-tech Industrial Development Zone Management Committee. "Wafer Material Production Base Project Cooperation Agreement", investment in the construction of "300mm semiconductor wafer pulling and cutting, grinding and polishing production base", the total planned investment of the project is 9.1 billion yuan.

according to the announcement, the registered capital of the project is not less than 5 billion yuan, and the planned total investment is 9.1 billion yuan, of which Taiyuan investor plans to contribute 2 billion yuan, and Shanghai Xinsheng is responsible for raising the remaining 7.1 billion yuan (the final contribution shall be subject to the actual contribution).

Shanghai Silicon Industry stated that the source of funds for this investment is the company's own funds or funds raised by various partners, which will not adversely affect the company's normal production and operation, and there is no situation that harms the interests of listed companies and all shareholders. The project is still in the planned implementation stage and will not have a significant impact on the company's financial position and operating results in the short term.

300mm silicon wafer continued to expand production

the investment project is 300mm semiconductor silicon wafers. Shanghai Xinsheng is the first enterprise in mainland China to realize large-scale production and sales of 300mm semiconductor silicon wafers, and is continuously expanding production. Previously, the company expected that by the end of 2023, 300mm semiconductor silicon wafer production capacity will reach 450000 pieces/month.

At present, the most mainstream product specifications in the global semiconductor silicon wafer market are 300mm silicon wafers and 200mm silicon wafers, and the proportion of 300mm silicon wafers continues to rise. In terms of terminal applications, 300mm is mainly used in high-end fields such as smartphones, computers, cloud computing, artificial intelligence, and SSD (solid state storage hard disk).

at present, the semiconductor industry as a whole is still at the bottom. in August 2023, when the Shanghai silicon industry talked about the pace of future expansion, it said that the expansion would continue and should be able to meet the needs of customers well after the industry recovers.

In terms of timetable, Taiyuan Zhongbei High-tech Investment Development Co., Ltd. and the project company shall ensure that the project is completed within 14 months from the date of construction of the project. Shanghai Xinsheng shall ensure that the project company is qualified from the completion and acceptance, and Put into production within 9 months after the introduction and implementation of various government support policies agreed in this agreement.

Shanghai Silicon Industry said that through this investment, the company will speed up the production capacity construction and technical capacity improvement of 300mm semiconductor silicon wafers, in order to further enhance the company's market share, consolidate the domestic leading position and expand its advantages, and have a positive impact on the company's future financial situation and operating results, which is in line with the company's future development plan.

Hand in hand Taiyuan

The landing of such a large-scale project in Taiyuan will undoubtedly have a significant driving effect on the local industry. Shanghai Silicon Industry said that Shanghai Xinsheng will actively introduce its industrial chain and supply chain-related enterprises and projects to form an industrial ecology in Taiyuan as soon as possible. At the same time, the relevant enterprises and projects introduced by Shanghai Xinsheng can enjoy corresponding policy support after examination and approval.

The local government will also support the project. The announcement shows that because the project meets the needs of the national strategy and the international market demand is large, the local government will support it on a case-by-case basis, including investment subsidies, power supply guarantees, loan rewards, and R & D awards, project supporting, approval and planning and construction guarantees, land and plant supporting planning, talent policy supporting, etc. For example, give priority to providing personnel services such as settlement, preferential housing, staff dormitory, children's enrollment/education, medical treatment, etc. for the employees of the project company, and actively strive for the relevant talent policies of provinces, cities and districts that can be enjoyed.

What makes the outside world curious is why this project will land in Taiyuan?

from the perspective of project site selection, the proposed site of the project is about 225 mu of land ("project land") in shanglan area of taiyuan zhongbei high-tech industrial development zone, and about 100 mu of land is reserved for the future development of the project. the land use period is 50 years. the specific land (the land number is SG-2307) is located in the south of zhongbei east street and the west of baiban road in jiancaoping district of taiyuan city, the final scope is subject to the land publicly sold in accordance with the law.

Public information shows that Zhongbei High-tech Zone is the only provincial-level characteristic industrial development zone in the province, and it is also the first batch of national new-type industrialization industry demonstration bases. Shanglan District is planning and constructing "Shanglan Kechuang Valley". In the future, it will become the source of scientific and technological innovation, the center of industrial transformation and the highland of new industries in Taiyuan, bringing strong momentum to the development of regional industries.

21st Century Business Herald reporter noted that the Shanghai silicon industry and Taiyuan have long been interacting. According to local media reports, in December 2022, the main leaders of the local government held working talks with Changshou Weiguang, secretary of the party committee and director of Shanghai Guosheng Group, hoping that the group would closely combine its brand and technological advantages with Taiyuan's energy and policy advantages, deeply participate in the construction of Taixin integrated economic zone, accelerate the construction of semiconductor wafer material production base project, and introduce upstream and downstream industrial chain and supply chain related enterprises simultaneously, help our city to build a new type of chemical materials industry cluster, and provide strong support for the all-round high-quality development of Taiyuan.

In August 2023, the two sides held work talks again. A press release issued by local media showed that Shanghai Guosheng Group and Taiyuan City had already carried out in-depth cooperation in the early stage. The two sides jointly promoted the construction of the semiconductor wafer material production base project and the comprehensive transformation demonstration project in urban and rural areas. All work is progressing smoothly and positive results have been achieved.

Shanghai Guosheng is a Shanghai state-owned capital operation platform company and a major shareholder in Shanghai silicon industry. The current director of Shanghai Guosheng Changshou Weiguang, served as a member of the Standing Committee of the Taiyuan Municipal Committee of Shanxi Province, vice mayor.