Specializing in R&D and manufacturing of semi-semiconductor materials cutting, grinding, polishing equipment and automation equipment

IC industry fund investment layout

Editor:TDG-NISSIN PRECISION MACHINERY CO.,Ltd. │ Release Time:2019-05-12 

Source: The content comes from the public number "Artificial Intelligence Scientist", author Pan Wei, Chen Junjie, thank you


On May 8, Premier Li Keqiang chaired the State Council executive meeting and decided to extend the preferential income tax policy for integrated circuits and software to attract more domestic and foreign investment to participate in and promote the development of the information industry. The meeting stressed that relevant departments should pay close attention to research and improve the support policies to promote the development of integrated circuits and software industries to a higher level. The integrated circuit and software industry is a strategic, basic and leading industry that supports economic and social development, and the market space is huge. In the context of Sino-US trade friction, the localization of integrated circuits and software industries is imminent。

In terms of integrated circuits, the total amount of imported integrated circuits in China reached US$312 billion (about RMB 2.1 trillion) for the whole year of 2018, a year-on-year increase of 19.8%. In terms of software, the overall income of the software industry in 2018 reached 630.61 billion yuan, accounting for more than 7% of GDP。

whetstone — - National Integrated Circuit Industry Investment Fund Phase I to help industry development

In recent years, China's integrated circuit industry has made great progress. In 2014, IC industry sales reached 30.154 billion yuan, and the Chinese market reached 109.3 billion yuan, accounting for 50% of the global market。

However, the problems and bottlenecks that restrict industrial development are still outstanding, mainly in:

First, the accumulation of industrial innovation factors is insufficient。

The leading talents are scarce, the enterprise technology and management team are unstable; the enterprises are weak, and the income of more than 500 IC design companies is only about 60-70% of Qualcomm's. The investment in R&D of the whole industry is not enough for Intel. There are few core patents in the industry, and the problem of intellectual property layout structure is outstanding。

Second, the domestic market demand is insufficient。

The chip design is not closely integrated with the rapidly changing market demand, and it is difficult to enter the high-end market in the whole machine field。

Third, the "chip-software-machine-system-information service" industry chain synergy has not yet formed.。

Most of the high-end products of chip design companies are manufactured overseas, and there is no cooperative development model with domestic IC manufacturing companies. Manufacturing enterprise mass production technology is behind the international mainstream two generations, key equipment and materials are basically dependent on imports。

In the context of the imminent demand for localization of chips, in September 2014, the State Council issued the "Outline for the Development of the National Integrated Circuit Industry", proposing the establishment of a national industrial investment fund. On September 24, 2014, the Ministry of Finance, China Development Finance, China Tobacco, Yizhuang Guotou, China Mobile, Shanghai Guosheng, China Electronics, China Electronics, and Huaxin Investment jointly launched the “National IC Industry Investment Fund”。

At present, the National Integrated Circuit Industry Investment Fund (2014.09-2018.05) has completed the investment, and raised a total of 98.72 billion yuan of common stock. At the same time, it issued 40 billion yuan of preferred stock with a total investment of 138.7 billion yuan (compared to the original planned 120 billion yuan). Yuan Chao raised 15.6%), 23 public investment companies, and accumulated effective investment projects reached about 70. The investment scope covers all links of the integrated circuit industry in the middle, middle and lower reaches。

The sole manager of the fund is Huaxin Investment Management Co., Ltd., the Trusteeship National Development Bank。

Investment industry coverage of the entire industry chain

Among the first-phase investment projects of the big fund, integrated circuit manufacturing accounted for 67%, design accounted for 17%, packaging and testing accounted for 10%, and equipment materials accounted for 6%. It can be seen that the first focus of the first phase of the big fund is the manufacturing field. Firstly, it solves the problems of insufficient domestic production capacity and backward manufacturing of wafer manufacturing technology. The investment direction is concentrated in the storage and advanced technology production lines, and the investment in the top three in the industrial chain. 70% of companies。

The investment strategy is “direct equity investment + linkage with local funds and social capital”

There are two main types of investment in large funds: one is direct equity investment, including cross-border mergers and acquisitions, fixed-income, agreement transfer, capital increase, joint venture, etc., to optimize corporate shareholding structure and improve enterprise efficiency and management level; It is linked with local funds and social capital, and participates in sub-funds. Among them, direct equity investment is the main investment method。

The investment strategy of the big fund is very clear:

(1)Do not make venture capital;(2)Focus on investing in key enterprises in each industry chain;(3)Cooperate with leading companies on the capital level;(4)Design exit channel in advance。

Such an investment strategy enables the big fund to achieve the goal of supporting key enterprises to break through key technologies, and also to ensure the safety of funds and certain benefits to achieve sustainable development。

Taking wafer manufacturing as an example, in terms of advanced process manufacturing, the big fund has invested in SMIC (a total investment of nearly 16 billion yuan) and Shanghai Huahong (investing Huahong Wuxi 12-inch factory nearly 922 million US dollars); in terms of memory manufacturing, The Great Fund and Hubei Province and Ziguang Group have invested in the Yangtze River Storage NANDFlash project (investment of nearly 19 billion yuan), which is also the largest single investment of large funds. In terms of manufacturing process, the big fund mainly invested in Hangzhou Silan Micro; compound semiconductor manufacturing In terms of the main investment in Sanan Optoelectronics (investment of nearly 9 billion yuan) to promote its transformation to compound semiconductors。

In the field of packaging and testing, it has invested in the top three companies in the industry such as Changdian Technology, Tongfu Microelectronics and Huatian Technology. In the field of design, the company has invested in leading enterprises such as Ziguang Zhanrui and Zhongxing Microelectronics, as well as leading faucets such as Naiwei Technology, Guoke Microelectronics and Shengke Network。

In the field of equipment, it invested in North Microelectronics and Micro-Semiconductor, and promoted the integration of Northern Microelectronics and Qixing Electronics to form North Huachuang. In terms of scale, North Huachuang has become the largest semiconductor equipment enterprise in China

In the field of materials, the company invested in Shanghai Silicon Industry Group, in the field of large silicon wafers; invested in Jiangsu Xinhua, laid out electronic grade polysilicon materials; invested in Anji microelectronics, promoted the development of polishing fluid, etc。

In terms of shareholding sub-funds, local funds funded by large funds include Beijing IC Manufacturing and Equipment Sub-Fund, Shanghai IC Manufacturing Sub-Fund, Shanghai IC Design and M&A Sub-Fund; large funds also set up investment funds with large leading enterprises, such as Big Fund and BOE set up Core Power Fund, set up SMIC Source Fund with SMIC, and set up Anxin Fund with Sanan Optoelectronics。

At present, the target scale of the local integrated circuit industry development fund that has been established or announced has reached 300 billion yuan。