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Net profit increased by 107.51%!The king of domestic semiconductor etching handed over the first test paper

Posted on: 08/24/2022

On April 16, China Microelectronics released its first annual report since its listing. According to the annual report, in 2019, China Micro semiconductor’s revenue was 1.947 billion yuan, an increase of 18.77% year-on-year, its net profit was 189 million yuan, a year-on-year increase of 107.51%, and its gross profit margin was 34.93%.

5nm wins TSMC orders

In the manufacturing of logic integrated circuits, the high-end etching equipment developed by China Microelectronics has been applied to the 65nm to 7nm chip production lines of internationally renowned customers; at the same time, China Microelectronics has developed 5nm etching equipment for For the processing of several key steps, China Microelectronics said that it has obtained bulk orders from industry-leading customers, and as we all know, the first leading company is TSMC.

A powerful assist from YMTC

In the 3D NAND chip manufacturing process, China Microelectronics has developed capacitive plasma etching equipment that can be applied to 64-layer mass production. At the same time, 128 key etching applications and corresponding etching equipment and processes with extremely high aspect ratio are under development. stage. From the perspective of Zhongwei’s customer structure, domestic customers account for about 70% of Zhongwei’s orders, and now YMTC has announced the successful development of 128-layer flash memory. chip.

MOCVD equipment technology

China Micro Semiconductor’s MOCVD equipment has taken a leading position in the global GaN-based LED equipment market. The MOCVD equipment developed for the manufacture of deep ultraviolet LEDs has been successfully verified in industry-leading clients. The research and development of MOCVD equipment produced with Mini LEDs is in progress. MOCVD equipment needed to manufacture Micro LEDs, power devices, etc. is also under development.

Continue to increase R&D

From the company structure of Zhongwei, it can be seen that Zhongwei’s R&D personnel account for nearly 40%, and the average salary of R&D personnel is 600,000. In terms of academic qualifications, 17.75% are doctors, 31.52% are masters, and 50.22% are undergraduates.

It can be seen from the financial report of Zhongwei Semiconductor that the gross profit margin in 2019 decreased by 0.57 percentage points. Yin Zhiyao, chairman of Zhongwei, said at the performance briefing that this is mainly because although Zhongwei’s etching equipment has reached the level of international counterparts, But before the company’s equipment entered the market, the gross profit margin of MOCVD equipment has dropped to a very low level due to fierce competition from American and German equipment companies. Since the sales of Zhongwei’s MOCVD equipment accounts for a considerable proportion of the company’s sales, the company’s total gross profit margin is relatively low.

China Micro Semiconductor also stated in the financial report that the semiconductor equipment industry is a technology-intensive industry, involving many sub-sectors and disciplines, and has large R&D investment, long cycle and high risk. Leading foreign counterparts have also invested a lot in R&D. In 2019, Applied Materials invested more than 2 billion US dollars in R&D, Fanlin Semiconductor invested more than 1 billion US dollars in R&D, and Weike invested nearly 100 million US dollars in R&D. The investment of medium and micro enterprises accounts for 21.81%. Although the proportion is high, the total investment is still quite different from that of foreign countries, so continuous and stable high investment is necessary.