Huxi Industry plans to establish a controlling subsidiary with an investment of 1.55 billion yuan to implement a project for expanding the production of 300mm semiconductor silicon wafers.

On May 25, Hu Silicon Industry issued an announcement stating that the company plans to establish, through its wholly-owned subsidiary Shanghai Xinsheng, a series of tiered holding subsidiaries—starting with the first-level holding subsidiary Shanghai Jingsheng Xincheng Semiconductor Technology Co., Ltd., followed by the second-level holding subsidiary Shanghai Xinsheng Jingke Semiconductor Technology Co., Ltd. (tentatively named), and then the third-level holding subsidiary Shanghai Xinsheng Jingrui Semiconductor Technology Co., Ltd. (tentatively named)—by contributing RMB 15,500 million together with several joint venture partners. These subsidiaries will be tasked with implementing a project to expand production capacity for 300mm semiconductor silicon wafers. Shanghai Xinsheng, as the direct or indirect controlling shareholder of all these tiered subsidiaries, will serve as the primary entity responsible for the implementation and advancement of the expansion project.

Image source: Screenshot from the announcement by Hu Silicon Industry

It is reported that the project comprises two main components: the construction of a crystal-growth R&D and advanced manufacturing facility for 300mm single-crystal silicon ingots used in integrated circuit manufacturing, and the construction of a slicing, grinding, and polishing production line for high-end 300mm silicon wafers used in integrated circuit manufacturing. The latter is one of the investment projects funded by the company’s issuance of shares to specific investors. Upon completion of the project, monthly production capacity for 300mm semiconductor silicon wafers will increase by 300,000 wafers, bringing the company’s total monthly production capacity for 300mm semiconductor silicon wafers used in integrated circuits to 600,000 wafers. This will further strengthen the company’s business foundation and enhance its market share.

The announcement indicates that the Big Fund Phase II is among the multiple joint venture partners investing jointly with Shanghai Xinsheng this time. In February of this year, Big Fund Phase II had already invested approximately 1.5 billion yuan in the private placement of Hu Silicon Industry. This time, Big Fund Phase II will once again step in with an additional investment of 2.5 billion yuan, continuing to ramp up its support for the construction of the 300mm large silicon wafer project.

In addition, other investors in the joint venture include the National Council for Social Security Fund, Bank of China Investment, the Mixed-Ownership Reform Fund, the China National Building Materials New Materials Fund, Haitong Innovation Investment, Shangguo Investment Management, and Wuyuefeng Capital. Currently, Shanghai Guosheng Group and the National Integrated Circuit Industry Investment Fund (the First Phase of the Big Fund) each hold a 20.84% stake in Hu Silicon Industry, making them the joint largest shareholders.

Hui Silicon Industry emphasized that the continuous shrinking of feature sizes in integrated circuit chips and the ongoing increase in semiconductor silicon wafer sizes are increasingly becoming major trends in the development of the semiconductor industry, and 300mm semiconductor silicon wafers have now become the mainstream product globally.
Huxi Industry has established a technical team with strong capabilities in independent R&D and innovation. In the field of 300mm semiconductor silicon wafers, the company has undertaken two national “02 Special Projects,” namely the “R&D and Industrialization Project for 300mm Silicon Wafers Used in 40-28nm Integrated Circuits” and the “Development and Industrialization Project for a Complete Set of Technologies for 300mm Silicon Wafers Used in 20-14nm Integrated Circuits.”

To date, the company’s 300mm semiconductor silicon wafers have been certified and approved by numerous domestic and international chip manufacturers, including GlobalFoundries, SMIC, HuaHong Group, HuaLi Micro, Yangtze Memory Technologies, and Changxin Memory Technologies. The company has achieved full coverage of major domestic chip manufacturers among its customers and has attained comprehensive coverage across downstream applications, including logic chips, memory chips, and image sensor chips.

Previously, HuSi Industry also announced that its wholly-owned subsidiary, Okmetic, will launch an expansion project to increase production capacity for 200mm specialty silicon wafers for semiconductors, thereby scaling up the company’s production of 200mm semiconductor silicon wafers used in integrated circuits.

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