china semiconductor industry 2009

1

Lily Feng

Manager, Industry Research & StatisticsSEMI [email protected]

SEMICON JapanDec 02, 2008

China Semiconductor and PV Market Overview

SEMI半导体产业网www.semi.org.cn

mailto:[email protected]

2

Agenda

• China Semiconductor Fab Equipment and Material Market – China Semiconductor Fab Market– China Semiconductor Fab Material Market – China Semiconductor Fab Equipment Market – China Parts and Spares Market

• China PV Market• Summary


3

China Annual GDP Growth Rate (2000 – 2009)

Source: IQTE (Institute of Quantitative & Technical Economics )


4

Market Drivers & Supply Chain:The Local Supply-Demand Gap Drives “Silicon Rush” in China

Source: CSIA, iSuppli, IC Insights, SEMI Industry Research and Statistics, Oct 2008

China IC Market Demand vs. Domestic IC Supply in 2000-2010

1120

27.634.4

42.948

57

7585

91102

0.426 0.497 0.574 0.729 2.184 2.806 3.9 5.1 5.3 5.2 6.0

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Chi

na IC

Mar

ket (

US

$B)

0%

1%

2%

3%

4%

5%

6%

7%

8%

Por

tion

of D

omes

tic S

uppl

y

CN Total IC market Demand CN Domestic Supply Domestic Supply of Total Demand(%)


5

Government is the Biggest Investor

• Semiconductor Investment:– Government co-invested in projects with a total of

$6.6B in the past 5 years – Government is likely to invest total of over $20B in

the next 5 years• Suzhou, Wuxi, Shangdong, Shanghai, Shenzhen, Dalian

– Central Government will put $30B in semiconductor (semiconductor equipment and material are included) and software industry from 2008 to 2020


6 Source: SEMI (April 2008)

Semiconductor Wafer Fabs in China

Beijing

Xian

Chengdu

Guangzhou

Hong Kong

Shanghai

SMIC Fab 4 300 mm SMIC Fab 5 300 mm * SMIC Fab 6 Backend SGNEC Fab 1 150 mm CSMC-IMECAS 150 mm

Legend Site in production or

ramp Site under construction * Site equipping Site in plan City of population >7M City of population <7M

Capital

Shenyang

Wuxi Hynix-ST Fab C1 200 mm Hynix-ST Fab C1 300 mm Hynix-ST Fab C2 300 mm * CSMC Fab 1 150 mm CSMC Fab 2 200 mm * CSWC Fab 2 150 mm

Suzhou Hejian Fab 1 200 mm Hejian Fab 2 300 mm PowerChip 200 mm Kushan IC Spectrum 200 mm Anadigics 150 mm

Hangzhou Silan Fab 2 150 mm

Ningbo SinoMOS Fab 1 150 mm

Zhuhai ACSMC Fab 1 150 mm Shenzhen Founder Electronics 150 mm Founder Electronics 150 mm SMIC Fab X 300 mm SMIC Fab X 200 mm

Xiyue Fab 1 150 mm

ProMOS Fab x 200 mm * ProMOS Fab X 300 mm

Nantong GMIC Fab 1 200 mm *

Cension Fab 1 200 mm

Dalian Intel Fab 68 300 mm

Chongqin Wuhan

WXIC Fab 1 300 mm *

SMIC Fab 7 200 mm

Tianjing

LPSC Fab 1 150 mm

SMIC Fab 1 200 mm SMIC Fab 2 200 mm SMIC Fab 3 Backend GSMC Fab 1 200 mm GSMC Fab 2 200 mm GSMC Fab 3 300 mm HHNEC Fab 1 200 mm HHNEC Fab 2 200 mm HHNEC Fab 1C 200 mm HHNEC Fab x 300 mm ASMC Fab 2 150 mm ASMC Fab 3 200 mm ASMC Fab 4 200 mm BCD Fab 1 150 mm BCD Fab 2 200 mm TSMC Fab 10 200 mm Belling Fab 2 150 mm SMIC Fab 8 300 mm SMIC Fab 9 CIS SMIC Fab 10 Photo.V

Leshan

Jiling

Fuzhou

Fushun Microelectronics Fab 2 150 mm

JSMC Fab-x 150 mm


7

China Fab Capacity by Wafer Size

(k wpm in 200mm wafer equivalent, 2001-2010Source: SEMI Industry Research and Statistics, Nov. 2008

Fab Capacity in China by Wafer Size

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008(F) 2009(F) 2010(F)

K w

pm (i

n 20

0mm

waf

er e

quiv

alen

t)

300mm Capacity 200mm Capacity 150mm Capacity 125mm Capacity


8

Fab Material Break Down in China Market

Source: SEMI Industry Research and Statistics, Nov.2008

Fab Material Break Down in China Market (US$ Million)

0

200

400

600

800

1,000

1,200

1,400

1,600

2003 2004 2005 2006 2007 2008 (F) 2009 (F) 2010 (F)

Silicon Photomasks Photoresists

Photoresist Ancilliaries Gases Wet Chemicals

Targets CMP Other


9

Wafer Fab Process Equipment Spending in China

Source: SEMI Industry Research and Statistics, Nov.2008

Wafer Processing Equipment Spending in China

0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006 2007 2008(F) 2009(F) 2010(F)

US

$ M

illio

n

0%

20%

40%

60%

80%

100%

120%

% o

f New

Eq.

Spe

ndin

g on

300

mm

New Wafer Process Equipment Total Wafer Process Equipment 300mm Tools (% of New Equipment)


10

Category of Domestic Fab Equipment Supplier

• Traditional Fab Equipment Supplier – Research Institution Rooted– State Owned Company

• New Fab Equipment Supplier – Experienced Overseas Returnee – Owner of Key Government Project


11

Domestic Fab Equipment Supplier Profile-- Differentiation between Two Types of Supplier

Differentiation Traditional Supplier

New Supplier

Company Size ~1000 people ~200 people

Talent Master & PhD<=10% /Low labor cost

50%>=Master /High labor cost

Capital & Revenue Self-Sufficiency Funding/VC/Loan

Target Market Mainland-China Global Market

Technology 100-200mm/>=0.25um

200-300mm/<=100nm

IP Self-Developed/ Collaboration Self-Developed/License

Source: “China Domestic Fab Equipment Suppliers” 2008 June, SEMI


12

Domestic Fab Equipment Suppliers Overview

Products Segment Company

Exposure & Write Equipment SMEE CECT 45 CECT 48 AdvanTools

Photoresist Processing Equipment SevenStar SIAYUAN

Etch Equipment AMEC NMC Sevenstar CETC 48

Surface Conditioning Equipment SevenStar CETC 45 SIAYUAN

Thermal Process Equipment SevenStar CETC 48

Ion Implant Equipment ZKX CETC 48

Thin Film Deposition Equipment

(CVD/Sputter/Electroplating/electro deposition)AMEC NMC SKY

Inspection & Measurement Equipment 2 Start-up

CMP Equipment CETC 48 CETC 45 ACM

Other Wafer Processing (OWP)

Wafer Manufacturing LZR XAUT JYT JingYi



13

China Leading Domestic SupplersSales Break Down


2005 2006 2007 2008(E)

Semiconductor Equipment Growth Ratio 21% 38% 32% 1%

Solar Equipment Growth Ratio 9% 52% 75% 57%

Total Growth Ratio 16% 42% 40% 50%


14

China Spare Parts Market Driving Force

• Local Manufacturing Capability– Flow Control– Power Supply– Quartz– Ceramic– Vacuum– Machining– Material Handling

• Driving Force – Fab– Local Equipment Supplier– Oversea Equipment OEM– Used Equipment Supplier


15

Localization Case Study

Locally manufactured ImportedLocalized Parts and

Subsystem CategoryVolume

93%

<10%

32%

100%

Cost Cost

Machining System

Volume

90%

<10%

29%

Mechanical System

10%

100%

7%

Electronical System

>90% >90%

71%68%

- -Control Software


16

Challenge VS. Opportunity

• Management Mind Set• Standard Operation Process - Consistency• Technology Challenge

– Special Processes– Raw Material (Aluminium /Ceramic /Quartz /Nickel)

• Intellectual Property


17

Assembly Plants in ChinaSEMI半导体产业网www.semi.org.cn

18

Agenda

• China Semiconductor Fab Equipment and Material Market – China Semiconductor Fab Market– China Semiconductor Fab Material Market – China Semiconductor Fab Equipment Market – China Parts and Spares Market

• China PV Market• Summary


19

Xining Asia Silicon 0T

Leshan Xinguang 800TLeshan Yongxiang 250T

Leshan Dongqi 50T

Chongqing Daco group 400T

Yichang Nanbo(CSG) 30T

Xinyu LDK Solar 15-25T

Wuxi Zhongcai 280T

Shanghai Lengguang 45T

Yangzhou Shunda 50T

Xuzhou ZhongNeng(GCL) 1500T

Luoyang China Silicon 900T

Linzhou Renesola JV 210T

Polysilicon Project in China

Source: SEMI

E`mei 350TYaAn YongWang 50T


20

China Solar Grade Silicon Demand & Supply

Source: SEMI, Company Report, Solarbuzz


21

Solar Cell Manufacturers in China

2008 / 2009Suntech 1000MW / 1000MWSolarFun 360MW / 420MWChina Energy 320MW / 480MWCSI 270MW / 400MWJetion 100MW / 100MW Trina Solar 350MW / 500MW

2008 / 2009Yingli 400MW / 600MWJing Ao 600MW / 1000MW


22

China VS. Worldwide Solar Cell Production

2004 2005 2006 2007

CN Production (MW) 53 145 420 1050

CN of WW Production (MW) 5% 9% 20% 26%

Source: SEMI, Solarbuzz, Glodman Sachs

China VS Worldwide Solar Cell Production

0

2000

4000

6000

8000

10000

12000

2004 2005 2006 2007 2008(E) 2009(F) 2010(F)

CN Production WW Installed WW Production


23

Summary

• China semiconductor fab capacity will continuous grow with the support from government in long term.

• New semiconductor fabs added China will be mainly 200-300mm fabs, which will total >83% of total fab capacity by 2010.

• 300 mm equipment will represent most of the new wafer equipment spending in China. Domestic equipment suppliers have started selling 300mm equipment.

• Semiconductor equipment and material players benefit from Solar Industry.

• With the demand in solar cell manufacturing, a very large number of polysilicon projects are now running in China. Spot market silicon price drop about 50% in the past few weeks.


24

Thank You!


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