To build the best service mode of domestic semiconductor equipment market

2005 is China mainland wafer plant expansion deceleration a year. Due to funding constraints, existing technologies, profit pressures and technical barriers to export, the next 2 to 3 years, the Chinese mainland wafer factory will be more concerned about the stability and profitability of the process, rather than growth. With the change of this strategy, the second hand equipment is likely to become a bright spot in the growth of the domestic semiconductor industry.

Domestic equipment market booming

In fact, China has become the world's best-selling semiconductor second-hand equipment. According to statistics, 36 domestic semiconductor production line in the existing, in addition to SMIC, Hua Hong NEC, grace, and part of the new ship equipment, has a new production line in china. At the end of 2005, there will be 4 8 inch line (Changzhou Nanotec, Songjiang TSMC, Huahong NEC two factory, Shanghai advanced 5 - 6 inches), line (Wuxi Huarun, Hangzhou Silan, Ji Linhua micro, Shanghai belling 4 inch line transformation, Chinese Academy of Sciences), 1 5 inch line (Ningbo in the twilight China is expected to start). It is reported that these 10 lines will be all used equipment.

At present, China's mainland wafer factory is relatively concerned about 0.25 m ~ 0.18 M technology used equipment. We can predict that China will not build a new 8 inch wafer production line.

In view of the mainland Chinese second-hand equipment market booming, the global production equipment giants have joined them, many of them such as Applied Mate-rial, KLA-Tencor, NOVELLUS and other well-known equipment factory. Although the factory refurbished equipment in the performance quality, hardware maintenance, software upgrades, spare parts supply and customer service support has irreplaceable advantages, but also because of its new equipment supplier role, due to renovation of propulsion equipment business at the same time will inevitably lead to the sale of new equipment and reduce operating costs, labor costs increase and improve at the same time, also must deal with coincides with the structure of digestive semiconductor industry cyclical downturns, these factors will lead to its original interests, thus becoming the internal resistance of propulsion equipment renovation business. Therefore, the original renovation of the old equipment is actually out of the passive choice, investment in financial support and technical services must not be able to fully manage the renovation of the third party refurbished compared.

The third party in original factory renovation renovation has a price advantage, this is because the semiconductor sale part of old equipment has exceeded the depreciation period, the original factory will charge higher for obsolete or outdated equipment spare parts or technical support costs. However, the third party renovation chamber of Commerce faced by the original interest driven by the difficulties and the lack of various types of raw materials brought about by the distress, the same difficulties:

1 the original factory for non end customers to purchase parts sales restrictions (KLA-Tancor, Applied Material and other well-known factory).

2 lack of software required for equipment refurbishment. 3 refurbished models lack of familiarity of technical experts.

4 lack of original support.

5 lack of adequate support for customers.

6 lack of outdated parts procurement channels.

Comparison of the current second-hand equipment and new equipment procurement, directly on the domestic market, the third factory refurbished renovation of the three different ways of procurement under the purchase cost that direct purchase price is about 10% ~ 20% of the original equipment (the auction price is about 5% of the original value of equipment); factory refurbished price the equipment is about 60% of the original value to 70%; third square renovation cost about 50% to 60% of the original value of the equipment. It is clear that low prices are at a low level of service.

Although 60% is a fair and reasonable price, but it is not China's economic environment can withstand the price. For customers, 60% is still too expensive. Because of the use of equipment has been shortened; some parts or procedures are no longer used; a lot of old equipment can not be upgraded. This seems to be a contradiction, there is always a gap between supply and demand.

So what is the price acceptable to customers? We believe that in the minds of customers, 30% ~ 40% is a reasonable price, that is, the purchase cost of the old equipment from 10% to 15% plus a replacement of 10% ~ 20% parts and labor costs.

Seek the best cooperation model

As we have mentioned before, there is always a gap between supply and demand. At least in the existing second-hand equipment supply model, to achieve the goal of 30% ~ 40% is almost impossible. The client wishes to have all the work done by the third party equipment vendor, and is expected to receive the same services as the new equipment. This is obviously unrealistic, because the sale of old equipment is far higher than the profits of new equipment, but also take a lot of risks. Any cost compression is by no means a customer or third party vendor can unilaterally solve all. The only way to make the impossible possible is to cooperate. Namely, risk sharing, profit sharing, work together to jointly reduce costs.

We analyze all possible channels to reduce costs including:

1 to eliminate intermediate links: 10% ~ 15%.

2 reduce boot and warranty costs: 5% to 7%.

3 reduce operating costs - as far as possible with the localization of the operation of the renovation of cooperation.

4 reduce labor costs.

5 reduce import tariffs. Only to achieve the above objectives, it is possible to achieve 30% ~ 40% of procurement objectives. In order to achieve the above objectives, the customer must find a qualified domestic third party equipment renovation service providers, and to establish a cooperative relationship. The manufacturer must have the technical support of the original plant, and has the ability to