On October 28, Beijing Sianyi Innovation Technology Co., Ltd. (hereinafter referred to as 'Siyi Innovation', 603986.SH) signed a cooperation agreement with Hefei Industrial Investment Holdings (Group) Co., Ltd. (hereinafter referred to as 'Hefei Capital Investment'), The two sides will carry out R & D of 12-inch wafer memory (including DRAM, etc.) of 19nm memory of process technology in the Airport Economic Demonstration Zone of Hefei Economic and Technological Development Zone. The project budget will reach 18 billion yuan. Siu Yi Innovation and Hefei will invest 1% : 4 ratio is responsible for raising, Siu Yi innovation responsible for raising about 3.6 billion.
The evening of October 31, Siu Yi innovation announced that plans to plan major issues. The industry generally agreed that the move or with the above 18 billion yuan memory project related. And Siu Yi innovation to the "China Business" reporter said the specific issues temporarily Inconvenience revealed, follow-up announcement shall prevail.
Nor Flash market mutation
Siu Yi innovation is the memory industry giant, has been to produce Nor Flash (code-based flash memory) memory and MCU-based micro-control unit since the beginning of this year, the global Nor Flash market supply and demand structure has changed dramatically, on the one hand, a number of veteran On the other hand, the demand for AMOLED screens, car chips and IoT chips has been further expanded. As one of the few Nor Flash memory manufacturers, Trillion Innovations is profitable in this round of market changes.
January to September 2017, Siu Yi innovation revenue 1.517 billion yuan, an increase of 44.69%; return net profit of 392 million yuan, an increase of 153.48%; of which the third quarter revenue 578 million yuan, an increase of 47.01% , An increase of 18.9% compared with the same period of last year; net profit attributable to parent company was 160 million yuan, up 192.51% from the same period of last year and up 45.4% from the previous quarter.
As early as the beginning of this year, Siu Yi Innovation in Nor Flash memory market share of only 16%, the overall market mainly by Micron Technology (NASDAQ: MU), Cypress (NASDAQ: CY) and Wang Wang Electronics, Winbond Electronics As Nor Flash chip AMOLED screen one of the key components, along with the AMOLED screen mass production and the official production of domestic OLED screen, Nor Flash chip supply this year has been tight, but in February this year, Micron decided to focus In May, another US-based manufacturer, Cypress, decided to shift its production strategy to the market for automotive and industrial specifications. The production of low-capacity Nor Flash chips began to be gradually reduced The share of the two major US plants, which exceed 40% of global market share, has had a profound impact on the subsequent supply of the market after the production was faded out. A large number of orders have begun to be transferred to Taiwan's Macronix Electronics, Winbond Electronics and domestic manufacturers.
Market structure changes suddenly, but manufacturers plan to increase production in the first half of next year before they can be effective.Wu Bang Electronics announced that by the end of the monthly capacity from 44,000 to 48,000, the future and then increased to 52,000 ~ 53,000; and Wang Wang Electronics mainly to adjust the structure of the process-based, limited increase in production capacity.Another news that Siu Yi innovation began to seek expansion in June, however, subject to the upstream silicon wafer out of stock, SMIC is difficult to provide Siu for innovation Support.This situation turnaround in September September 5, Siu Yi innovation announced that it plans to sign a strategic cooperation agreement with SMIC, by the end of 2018 to purchase at least 1.2 billion in raw material wafer SMIC.
It is said that SMIC promised to provide 25,000 pieces of production capacity per month to Siu Yi Innovation and produce Nor Flash memory for its foundry. At present, the global production volume of Nor Flash memory is estimated at 88,000 pieces per month, and the amount of production increased by nearly 30% , Not only can greatly ease the current market out of stock phenomenon, but also help Siu Yi innovation to further expand their market share. Reporters have to Siu Yi innovation to verify the authenticity of this increase in production information, but its staff said that corporate productivity data For trade secrets, temporarily disclosed to the outside.
Project uncertainty
Since the middle of last year, global DRAM memory particles have been in short supply, resulting in memory prices soaring in the face of the ever-expanding market demand, Siu Yi innovation is also trying to DRAM memory particle business breakthrough.
Earlier, the industry had already reported that Siu Yi innovation will be with Hefei Changxin (Hefei wholly-owned subsidiary) to develop DRAM memory chip business news.October 28, the news was confirmed, the project budget of 180 billion yuan.
In fact, trillion easy to seek innovation into the DRAM industry has long been ambitious.Reporters noted that as early as April of this year, trillion easy innovation has been prepared to issue about 3128 shares to buy 100% stake in Silicon Silicon Co., Ltd. in order to seek Making a difference in DRAM memory particle business when the transaction price was set at 6.5 billion yuan by both parties However, on August 9, Siu Yi Innovation announced that Beijing Silicon as the main supplier believes that both parties will become potentially powerful after the reorganization Therefore, Beijing Silicon is required to sign a replacement agreement and agreed to terminate the supply contract with Beijing Silicon after the completion of the reorganization. Subsequently, the restructuring of Siu Yi Innovation and Beijing Silicon Technology was terminated.
Two months after the reorganization failed, Siu Yi innovation decided to hand in Hefei production and began to participate in the research and development of domestic DRAM particles, according to the agreement, the goal of both sides is in the December 31, 2018 R & D success, that is, product yield is not low At 10%.
At present, there are mainly three main players in the mainstream memory chips in the country, namely, Changjiang Storage Co., Ltd. invested by National IC Industry Investment Fund and Ziguang Group, Fujian Jinhua and Hefei Changxin. The initial storage of the Yangtze River Storage is in the production of 3D NAND Flash chips, Will be the development of DRAM products; while Fujian Jinhua and Hefei Changxin main DRAM memory particles, including Fujian Jinhua and Taiwan enterprises Lianhua electronic cooperation. According to the three companies planning, research and development and production will be 2018 as a key node If by then Heixing Changxin trial production is successful, considering the current global memory industry is in a high state, as a partner of Siu Yi innovation can naturally achieve significant economic and technological gains.
However, due to the previous domestic DRAM chip manufacturers do not have the research and development, production experience, combined with Hefei Changxin direct research and development goals set in the most advanced 19nm process technology, so the success of all DRAM projects is still on the sidelines, especially in the In October this year, Taiwan media reported that Changfeng, Hefei, Fujian and Jinhua pilot production of DRAM particles failed, yield all 0. Although the news has not been confirmed by the above manufacturers, but also from the side of the DRAM project reflects the high technical threshold , R & D difficult to this fact.
Siu Yi innovation mentioned in the announcement, subject to the introduction of talent, intellectual property and equipment imports and other factors, whether the successful development of Hefei DRAM project there is uncertainty, even if the success of research and development, product yield can increase, the ability to achieve the amount But also from the successful development to production and sales, it will take up to several years for the Company to have uncertainties about the Company's financial position and operating performance after 2018 and beyond.