In the wave of continuous change in the global semiconductor industry, the capital operation of Chinese enterprises has once again attracted the attention of all walks of life. Recently, there has been a development of silicon (688432. SH) announced that it will jointly increase its capital to its shareholding company, Shandong Youyan Ace Semiconductor Materials Co., Ltd., with a total amount of 760 million yuan. Behind this capital injection is not only the emphasis on the layout of the 12-inch silicon wafer industry, but also a deep insight into the future market supply and demand trends.

For the semiconductor industry, every link from raw materials, equipment to finished products contains huge market potential and development opportunities. In the context of the current global chip shortage, the importance of 12-inch silicon wafers as a mainstream product is becoming more and more prominent. The capital increase of Youyan Silicon is the strategic layout made by the company in order to seize market share.

Industry status and prospects

Specifically, 12-inch silicon wafers are used as key raw materials for the manufacture of integrated circuits, and the consideration of the intensity of its investment and the return period in the industry is particularly important. According to industry data, the construction investment of 12-inch wafer fabs can be as high as billions of yuan, and the investment cycle of its production line is long, and the depreciation of fixed assets has also increased significantly. As a result, many new entrants are facing considerable pressure on both the financial and technical aspects.

This is the case with the current situation of Shandong Youyan AIS: although it has a production capacity of 100,000 pieces, it has not yet achieved profitability. The challenges of investment and product promotion have undoubtedly brought anxiety to enterprises, especially the high barriers to customer certification, which has slowed down the process of market promotion. Customer certification of 12-inch wafers requires multiple stages such as strict supplier onboarding, test wafer certification, and positive wafer certification, which usually takes about two years to obtain mass production orders. Therefore, although the current demand for 12-inch silicon wafers is huge, relevant companies need to carefully evaluate when entering the market.

Strategic considerations behind the capital increase

The capital increase of GRI and CRI is actually an accurate investment decision made on the basis of comprehensive consideration of the market environment and industry prospects. Of the 380 million yuan of the capital increase of the two sides, 371 million yuan was included in the registered capital, which provided a strong financial guarantee for the follow-up development of Shandong Youyan Ace. With the funds in place, Shandong Youyan Ace will not only be supported in the automation and efficiency improvement of the production line, but also accelerate the marketization process of products, which will help reduce the cost of raw materials and R&D investment.

It is worth noting that although the capital increase can enhance the financial strength of Shandong Youyan Ace, whether it can gain a foothold in the increasingly competitive market still needs to pay attention to the improvement of its core technology and R&D capabilities. Only by continuous innovation can we be invincible in the industry.

Industry Trends and Future Prospects

Looking ahead, with the evolution of technology and the increase of market demand, 12-inch silicon wafers will play an increasingly key role in replacing traditional manufacturing processes. In particular, the vigorous development of new energy vehicles, 5G communications, artificial intelligence and cloud computing has greatly promoted the demand for high-end semiconductor materials.

The capital increase of GRI Silicon and China GRI has brought a positive signal to the industry, marking that the domestic semiconductor materials field is ushering in new development opportunities. For other enterprises, it is advisable to learn from the successful experience of Youyan Silicon and meet the challenges of the future through related technology research and development and capital injection.

Epilogue

In summary, the capital increase of GRI Silicon not only aims to strengthen its competitiveness in the 12-inch silicon wafer market, but also points out the way for the future development direction of the industry. In the face of the increasingly severe market situation, only with sufficient capital and technical strength can we stand out from the competition.

This process not only brings confidence to investors, but also provides a reference for the development of other players in the industry. How the semiconductor industry will evolve in the future is worthy of the attention and expectation of all enterprises and investors. The road to core technology and market share is bound to be challenging, but at the same time, it is full of infinite possibilities.

Therefore, in this industry competition, only by breaking through and innovating can we truly seize the opportunity and win the future.