On November 3, SHXY Semiconductor Materials Technology Group announced a fixed increase plan. The company plans to raise funds not to exceed 1.45 billion yuan, of which 815 million yuan is to be invested in high-end photoresist research and development and industrialization projects for integrated circuit manufacturing, and strive to 2023 The industrialization of the above-mentioned products was realized two years ago, filling the gap in China. 335 million yuan will be used for key process material projects for integrated circuits.
SHXY is mainly engaged in the R&D, design, manufacturing, and sales services of semiconductor chemical materials and supporting equipment. In recent years, the sales of semiconductor chemical products have increased year by year. If the difficulties of high-end photoresist industrialization are overcome, the company will expand new product areas and sources of income, and at the same time, it may promote the localization of domestic semiconductor materials.
815 million invested in high-end photoresist projects
The company has been preparing for the research and development of photoresist projects since 2017. At present, some core technologies have made breakthroughs. Both ArF dry photoresist and KrF thick film photoresist have formed laboratory results, and are undergoing pilot trials and follow-up verification.
In this fixed increase of funds, 815 million yuan is planned to be invested in high-end photoresist research and development and industrialization projects for integrated circuit manufacturing. The main goal is to realize the photoresist used in the ArF dry process and the KrF thickness for 3D NAND step etching. Industrialization of film photoresist. Strive to realize the industrialization of the above-mentioned products by 2023. It is estimated that the total sales income of various products will reach nearly 200 million yuan that year, which will break foreign monopolies and fill the gaps in China.
SHXY started by mastering the first-generation electronic electroplating and electronic cleaning technology in the semiconductor packaging field. In the past 10 years, the compound annual growth rate of R&D investment in semiconductor business has reached 22%, and R&D investment accounts for about 9% of total revenue. The company has mastered the second-generation electronic electroplating and electronic cleaning technology for the field of chip manufacturing, realizing domestic substitution and independent supply capabilities.
If the fundraising project can develop and master high-end electronic lithography technology, it may become SHXY's third core technology, which will expand new product areas and sources of income for the company, and the company's industrial chain layout will be more complete.
Rapid growth in chemical sales and plans to substantially expand production
In recent years, China's domestic chip industry has set off a climax of investment and construction. In 2019 alone, China has a total of 12 wafer fabs put into production, and will gradually enter the expansion stage in 2020. The large-scale expansion of the production capacity of the downstream semiconductor industry will directly drive the strong growth of the local semiconductor electronic chemical market demand.
For a long time, SHXY has been leading the country in the sales and market share of functional chemical materials in the field of traditional semiconductor packaging due to its mastering of key technologies, and has been recognized as the Baseline (baseline/reference material) by 25 domestic integrated circuit production lines. SHXY is the only domestic company in China that can provide ultra-pure electroplating solutions and additives for the 90-28nm technology node of the wafer copper process. In most cases, its products enter wafer manufacturing enterprises through import substitution.
From 2017 to 2019, the sales of SHXY chemical materials were 4475 tons, 4910 tons, and 5307 tons, and the annual sales volume increased by nearly 400 tons. During the same period, chemical revenues were 179 million yuan, 195 million yuan, and 207 million yuan, a year-on-year increase of 21.14%. , 9.09%, 6.17%. In the first half of this year, revenue reached 117 million yuan, a year-on-year increase of 37.47%. Among them, with the accelerated localization of wafer ultra-pure chemical material products, revenue reached 54.689 million yuan, an increase of 97.55% over the same period last year.
According to statistics from the China Integrated Circuit Materials Industry Technology Innovation Alliance (ICMTIA), the revenue of sample enterprises in China's integrated circuit materials industry in 2019 increased by 8.74% year-on-year, and the sales revenue in the first half of 2020 increased by 6.94% year-on-year. The scale of China's semiconductor materials market is expected in the next few years It will continue to grow rapidly. With the rapid and continuous development of China's semiconductor industry, SHXY's current chemical material product production capacity can no longer meet customer needs.
In this fundraising plan, SHXY intends to use 335 million yuan for integrated circuit key process materials projects, and will add a total of new years for the chip copper interconnection ultra-high-purity copper sulfate electroplating solution series and chip etching ultra-pure cleaning solution series. With a production capacity of 17,000 tons, it is expected to have an average annual operating income of 551 million yuan and a total profit of 99.702 million yuan after fully reaching production, which will greatly enhance the company's semiconductor-related ultra-pure chemical material product manufacturing capabilities.