An empty, foundry industry is full of opportunism

In Changzhou, has been blasting the empty NACO recession when another enterprise also came to negative news: the anonymity of the foundry industry in an "EE" said in a telephone interview, Changzhou neekit is not the first stranded project, recently announced a $600 million investment open ground Fukang international project in the River Industrial Zone of Beijing Lin also because of lack of funds and problems. "In fact, Fukang international project has been at a standstill." The source disclosed.

For Changzhou neekit encounter another foundry companies who said, entirely expected". He pointed out that, in fact, Changzhou is the city of enterprise cashier, wafer second troubled. This example is in recent years in Ningbo Zhongning too numerous to mention, a shell.

Although Changzhou neekit are not very understanding, but two of respondents said that in Changzhou the wafer project itself is somewhat strange, so there is a reasonable crisis. "There is a problem with the site, no one here wants to come." One source said, and if you can not pull a good technical team, how to get the support of follow-up funding?"

Chinese, semiconductor industry, especially the foundry industry there has been a rash of its movement in the past few years. All over the place. However, so far, most are still at a loss, the real money making business can be described as few.

"It's mainly because of the huge investment needed for the wafer project and the need for equipment depreciation in the first few years," he said." The first respondent said, "the establishment of a new plant requires at least $500 million investment."

"The mainland market is often closely related to the government, a typical two generation ID card project like HH-NEC."

Local government enthusiasm for the establishment of new plants, but also greatly exceeded our expectations. According to informed sources, a wafer manufacturers in the new project, a number of Chinese entirely by the local government led, including capital, plant, the fab is only responsible for the operation, in fact the risk borne by the government, now this industry are tight lipped, such a large project is almost completed the relevant reports but almost No.

However, many people are worried about, following this wave of surging wave of construction also undercurrent: opportunists who want to take the opportunity to lavish the hands of local government money. "I have to admit that many failed projects have a reason for the lack of estimates, but there are indeed many opportunists."

The house is leaking

In addition, although China's domestic IC design companies have begun to start, but its OEM demand is far from enough to meet the huge appetite of the current mainland wafer factory. SMIC is just not long ago in a public occasion that has become the largest affiliate of microelectronics in Chinese, customers in fact, most of the customers are almost all Fab from abroad. At present, China's mainland enterprises need to create only a few million a year, only one HH-NEC capacity is sufficient to fully digest.

But in this context, the local wafer companies do not pay attention to the healthy development of the industry is being abandoned by the local IC design companies. Fudan Microelectronics Technical Director Li Yu said in an interview that the current prosperity of the foundry project has some fun nature of capital. But once it is not so easy to get paid back, it will be a quick sale or exit. He admits that there are opportunists.

In the eyes of many outsiders, the industry seems to be very lively, in fact, it is very hard, there are many unfair competition and dumping phenomenon." He said, coupled with the cost of the industry has been very transparent, very sharp decline in corporate profits, the development of the entire semiconductor industry pressure is very large."

For now, the domestic foundry industry has emerged a lack of stamina. Li Yu pointed out that cooperation with domestic manufacturers have begun to appear some problems.

Fudan Microelectronics in the domestic and foreign foundries in the foundry project is roughly 5%. "Many domestic projects need support. In the long run, we also need to develop in the domestic industry chain. After all, communication is also convenient." Li Yu said that 02 to 03 years, just when the domestic wafer factory, the cooperation is not bad.

But in the past two years the style of these enterprises began to change. "The flow rate of the domestic wafer enterprises is very large." He said, we need to develop new technology in the long-term technical support and cooperation, but the flow of personnel to support the quality of service and related to the decline."

In view of the above factors, Li Yu said, Fudan Microelectronics is to adjust and consider the above cooperation, the more important products to foreign wafer factory to do. "Domestic manufacturers still have a gap with foreign rivals in terms of technical support and quality control." He said.

Li Yu also pointed out that the end of the domestic wafer enterprises still have the problem of weight is not heavy.