Pass the Huahong NEC and grace with chip foundry pattern will change

Huahong NEC and grace semiconductor such two domestic semiconductor industry pacesetter once the merger, most likely to change the Chinese OEM market pattern

Always bustling domestic semiconductor manufacturing industry, the past two months has appeared a rare silence. But now, can provoke the industry nervous excitement, only at the beginning of last month, Shanghai Huahong (Group) Co., the company hired Wang Ningguo as CEO. As soon as the news was announced, immediately attracted controversy.

When people see when watching how Wang Ningguo will have no hailun Huahong, Huahong group and Wang Ningguo news. From Barack Wang Ningguo already had two months, people minds also is getting stronger by Wang Ningguo in command of the Huahong what exactly is going on?

Recently, according to close to Wang Ningguo and Huahong group insiders, the current calm is the so-called responsibility ", it does mean big change is brewing.

Be made one, Huahong grace?

When we eagerly wait for Wang Ningguo action, a rumor spread like wildfire in the industry: Shanghai Huahong NEC and grace semiconductor will be industry consolidation. In this regard, the reporter had asked macro forces, but did not get confirmed.

However, China semiconductor industry association director of Information Department Li Ke told the "Internet Weekly": "grace and is in talks with Huahong things, likely will merge Huahong grace. The two sides are still in a stage of intent." Senior industry observers, "international" China reports editor Yao semiconductor Steel said more directly: "from the news, Huahong and grace two enterprises in the government is likely to become a kneading."

Merger rumors do not seem to make the industry surprised. The sources said, in fact, as early as 2003, the two have the power to promote integration of semiconductor manufacturing enterprises, but for some reason then.

This time brewing merger news, they immediately set their sights on the Shanghai Hongli semiconductor and Huahong NEC body. For a long time, the two companies as a pacesetter for China's semiconductor industry is very eye-catching.

Huahong NEC is Huahong group's most important subsidiary, mainly engaged in processing and manufacturing the chip. It was founded in 1997, is the country in order to promote the industry's famous "909 project" and the establishment of the enterprise. In 1999 two, Huahong NEC project is completed, with the domestic most advanced production line of 8 inches. For a time, the company has become a banner in the field of domestic semiconductor manufacturing.

The construction planning of macro power semiconductor was postponed until 2000. Moreover, due to the sudden impact of the world's semiconductor market downturn, the macro also slowed the progress of the construction of the plant until 2003 was officially put into operation.

The most important feature of the semiconductor manufacturing industry is the huge amount of fixed investment. The Huahong NEC is mainly responsible for the national "909 project", so its construction costs are almost from the government. The macro power semiconductor is registered in the British Cayman Islands, and attracted a number of social capital to enter, such as the United States, such as ultra fast semiconductor. However, according to Yao Gang introduction, macro force more financial support from the government.

It is because of the existence of government funding, which has become a basis for the possibility of consolidation. Another background of merger rumors are poor performance of both companies. Since 2000, the semiconductor market was in recession period, the performance is a significant decline in Hong NEC, gradually lost the position of the domestic semiconductor industry benchmarking enterprises. Macro also trapped in the industry cycle down. Yao Gang pointed out: because of the industry downturn, macro strategy is to wait until the industry to build up again after the factory. They estimated that the semiconductor industry bottomed out at least two or three years, but did not expect the situation began to change after 2002."

If the macro force to face the industry trough to take the strategy and almost simultaneously with it at the same time SMIC, the results are quite intriguing. Contrary to the macro power to avoid the practice of the industry downturn, SMIC's strategy is to take full advantage of the downturn in the industry, accelerate the investment and construction, accelerate the expansion. By 2004, it had seven factories in Shanghai, Beijing and Tianjin, and Beijing built one of the world's most advanced 12 inch production lines. As a result, SMIC in the industrial layout and technology greatly exceeds the Huahong NEC and grace semiconductor and other competitors.

In the eyes of Yao steel, it is grace start judgment error led to the later step, step by step error error, ultimately far behind the international of the core in the back, and lost in core international compete opportunities: "had to go all out to support national investment and grace, SMIC is completely is to rely on overseas funds plus some of its own funds to develop. However, the government also needs a banner, who will go ahead, it will be the first to support who, and to walk in front of the enterprise to represent the level of China's semiconductor industry."

In the Foundry (OEM) market, only the first, no second." This is a recognized motto in the field of semiconductor manufacturing. Yao Gang believes that the international of the core in face of the domestic market has way ahead, Huahong NEC and grace almost no chance what.

However, although in the foundry field has fallen on the opponent, but the situation