Crystal Sheng Electrical: It plans to spend 500 million yuan and Central shares set up a large silicon joint venture company

In the evening of November 28 announcement, the company had previously disclosed that it plans to jointly invest with Central Government's investment platform under the Wuxi Central Government in the construction of a large silicon wafer for integrated circuit production in Yixing City Manufacturing projects, a total investment of about 3 billion US dollars and the company shares and its wholly-owned subsidiary of Central, Hong Kong, Wuxi Municipal People's Government of Wuxi Development Co., Ltd. plans to jointly invest in the formation of the Central Semiconductor Materials Co., Ltd. with a registered capital of 5 billion yuan, the company invested 5 billion accounting for 10%; Central shares invested 1.5 billion (with the existing semiconductor assets funded), accounting for 30%; Central Hong Kong invested 1.5 billion, accounting for 30%.

The new company, 'Leading in Central,' will mainly engage in the development of new technologies, products and technologies for the integration of new materials, electronics and information, mechatronics, technical advice, technical services and technology transfer; semiconductor materials, semiconductor devices, special devices for semiconductor devices, electronic materials R & D, manufacturing and sales, etc. Jinsheng Electromechanical Co., Ltd. said the investment will strengthen the Company's core competitiveness in the field of semiconductor key equipment.

Pacific Securities believes that the cooperation project will lead the 12-inch silicon device localization of the wave.According to the state consulting statistics, the current domestic demand for 12-inch line of silicon was 460,000, 8-inch line of silicon demand was 66.1 Homemade silicon wafer larger gap between the self-sufficiency rate.White wind securities research shows that the current domestic demand for silicon is expected to be put into operation in 17-20 years, 62 fabs in 26 in mainland China. China-made leading silicon device companies, will be deep in this round of reporting on the domestic investment wave. Wind information shows that since the beginning of 2017, the company's semiconductor equipment orders exceeded 100 million yuan.