Undertake international mergers and acquisitions among the ranks of the world's third-largest IC packaging and testing
In August 2015, CSIC jointly invested by ICIC and SMIC acquired StarCorp, the fourth largest in the world for US $ 780 million. The acquisition expanded the business scale of ChangDian, opened up customers and technically The development of the bottleneck, improve the technical layout, broaden the market space for development, including the Qualcomm, Broadcom, MTK, ADI, Intel, SanDisk, Marvell, including international customers recognition.
According to TechSearch, CED revenue for 2016 was 2.899 billion U.S. dollars, ranking third in the world's IC packaging and testing business.
In terms of high-end packaging, Cheung Kong Technologies is the world's largest supplier of FO-WLP, shipments of more than 1.5 billion worldwide by the end of 2016; is the world's largest supplier of WLCSP package shipments of more than 5 billion in 2016, Ship more than 20 billion units by 2016; BUMPING is the fourth largest supplier in the world and ship more than 700 million wafers worldwide by the end of 2016.
According to the latest YOLE statistics, in the ranking of the world's advanced package suppliers in 2017, Cheung Kong will become the third largest supplier of packaging in the world with a market share of 7.8% over Amkor, TSMC and Samsung.
Through M & A, CKD Technology has also accelerated its global deployment to form seven distinctive bases, including the world's leading Fan-out eWLB and high-end WLCSP in Singapore (SCS), and the mass-produced Fan-out eWLB Year, total shipping more than 1.5 billion.Changsheng Technology through a series of measures, the third quarter of 2016, operating conditions improved significantly, profitability gradually restored, the fourth quarter of 2016 has basically achieved a single breakeven.
South Korea's factory (SCK) has advanced SiP, high-end fcBGA, fcPoP; the first volume production of the world's most integrated and highest precision SiP module, with the world's most advanced high-end smart phones fcPoP flip-chip packaging technology In July 2016, the new production line went into operation smoothly, which greatly improved the operation status.
The main products of JCEP are FO-WLP, WLCSP and fcBump. It is one of the largest Fan-in WLCSP bases in the world with an annual output of more than 6 billion pieces. It is the first in the industry to propose the Bumping middle package concept, which is the largest in China Bumping mid-range packaging base, can provide a full range of services including copper bumps, tin bumps and gold bumps; and JSCC supporting the provision of one-stop flip-flops services to many top international customers; self-developed Fan-out ECP technology to mass production, Fan-out ECP technology is mainly used for 4 × 4 the following package size, and SCS Fan-out eWLB technology in the package size complement each other; the first in the industry using industrial robot flashlight production automation.
Starcom Jinpeng Jiangyin (JSSC) has advanced memory package, SanDisk is a good supplier; has a full range of fc flip-chip technology, including fcBGA, fcCSP; is importing the world's most advanced fcPoP technology to greatly enhance the JSCC Comprehensive competitiveness and ability to serve China's high-end customers; to meet one month 100,000 12-inch wafer capacity.
The main products of Changjiang Electronics C3 Factory are high pin BGA, QFN products and SiP modules; it has the largest PA production line in the world and the second largest in the world; and FCOL (lead frame flip chip) has the world's largest shipments with 100 Flip-up production lines, and more than 30 SiP and SMT production lines.
Chuzhou plant to small signal discrete devices, the main product of the WB lead frame; the plant's products even more expensive than similar products 10%, or in short supply.
Suqian plant to lower the number of feet of IC and power devices, low cost is its competitive advantage.
The layout of the company's production base, Wang Xinchao that: 'focus is good, such as power, environmental protection, logistics, image management, sharing a set of people, low cost. In addition, traffic is now developed, distance is not a problem, no matter where the 24-hour arrival There is no need to set up factories everywhere, and I emphasize the lowest cost after concentration and concentration.
'The seven major production bases of Changjiang Electronics Technology have their own characteristics, covering high, medium and low technology, which can meet the needs of all customers all over the world. The seven factories of Changjiang Electronics Technology Co., Ltd. are well balanced in terms of technical layout and cost structure, Can fully cover the needs of front-line customers around the world. "Dr. Liu Ming, Senior Vice President of Changjiang Electronics pointed out.
The introduction of strategic shareholders impact the world camp
In addition to implementing the international mergers and acquisitions, another major move by Changjiang Electronics Technology has also drawn the industry's attention .In May 2017, Changchun Semiconductor held a 14.26% stake in Changjiang Electronics Technology Co., Ltd., becoming its single largest shareholder. Can not figure out why the original controlling party to give up the position of major shareholder?
'All my starting point is to hope that the technology of Cheung Kong will be better tomorrow and impact the world first camp.' 'Wang Xin Chao replied in a loud voice:' I do not stick to the position of the largest shareholder as long as it is beneficial to the development of the company. '
Wang Xinchao said: 'Long-term technology to impact the world's camp, you must have four conditions: First, first-class technology; Second, access to international top customer supply chain; Third, adequate funding; Fourth, there must be an international operation Team StarCorp Jinpeng has advanced technology and top international customers, because of the first two conditions, so I decided to acquire StarCraft, which is precisely because of the acquisition, leading to financial constraints.
Public information shows that the use of technology in the acquisition of Starcom Cheung Branch Jinpeng twice the financial leverage in the 780 million US dollars of consideration, the Yangtze River Technology only dig 260 million US dollars; National IC Industry Investment Fund to provide 160 million US dollars Of the equity funds and 140 million US dollars in convertible bonds, a total of 300 million US dollars; Bank of China branch in Wuxi provided 120 million US dollars in M & A loans; SMIC wholly owned subsidiary of Semiconductor Semiconductors to provide 100 million US dollars in equity funds. Leading to high financial costs of the company.
National IC Industry Investment Fund and Semiconductor Power Semiconductor become the shareholders of Changjiang Technologies, one is to resolve the company's pressure on cash repurchase, but also improve the company's financing capability; the second is to raise 2.6 billion yuan of matching funds to help companies Improve the financial structure and reduce the financial cost; thirdly, involve directors with international management experience and strengthen the management team's internationalization.
In 2017, Changjiang Technologies received a total of 26 billion yuan of financing support (16 billion yuan from China Development Bank and 10 billion yuan from China Eximbank), injecting new momentum into the next development of Changjiang Technologies.
'The short-term pain of consolidation is certain, but I believe that our pro-active strategic adjustment is conducive to the long-term development of the company.' Wang Xinhao boldly said that 'business is a long-term race, doing a good job in the near future, consider the profit In the circumstances, I pay more attention to the long-term development of the company. '
Wang Xinchao said that it will take about 10 years for Chinese semiconductors to catch up with the advanced world level, and because the threshold of packaging technology is relatively low and the foundation for domestic development is relatively good, IC packaging and testing industry will catch up faster than designing and manufacturing.
With the four major conditions of 'first-class technology, top international clients, sufficient capital and international management team', coupled with the rapid development of the Chinese market, the company is confident that it will have the first camp in the world for five years.