1. SMIC latest earnings interpretation: Liang Mengsong effect began to show;
2. SMIC 14 nanometer wafer technology products or put into operation in the first half of 2019;
3.In January 2018, the volume of China's integrated circuit integrated import volume increases;
4. ChinaCar will plan to establish a semiconductor R & D center in the UK;
5. upgrade 'China core';
1. SMIC latest earnings interpretation: Liang Mengsong effect began to show
Set micro-mesh news, SMIC held fourth quarter 2017 results call today morning, Q4 quarterly highlights is the substantial increase in the proportion of 28nm revenue, revenue sources more and more diversified, and the Chinese market IC design business revenue The proportion continues to improve.
SMIC CEO and Executive Director Zhao Haijun, Liang Mengsong, Chief Financial Officer and Executive Director and Executive Vice President of Strategic Planning Gao Yonggang, Investor Relations Director Guo Tingqian attended the meeting in view of SMIC's latest earnings and related developments.
During the period, Liang Mingsong joined SMIC for the first time since the response to advanced technology in the progress.
28nm, Q4 revenue share has risen to 11.3%. Leung Meng Song said 28nm HKMG and HKMG + will be mass production in mid-year, mass production in the second half, but he pointed out that although the 28nm revenue ratio exceeded the expected 10% However, due to fierce product competition, 28nm ASP products have declined, but also a certain impact on the Q4 Maori.
Advanced technology, Liang Mingsong said after taking office to adjust and update the FinFET planning, 3D FinFET technology will lock high-performance computing, low-power chip applications, is currently under active .14nm is currently put into operation in the first half of 2019, related products will have more High performance, lower cost, easier to import technology, and easier integration into equipment.
It is noteworthy that recently, SMIC Central replenishment of SMIC, the shareholding ratio changed to 50.1%, National Grand Fund and Shanghai IC Fund owned 27.04% and 22.86% stake in SMIC, respectively, as the second and third Gao Yonggang pointed out that this capacity is prepared specifically for 14nm.He said it expects to re-inject an additional $ 1 billion in June and December after the SMIC is targeting a production capacity of 35,000 wafers per month.
SMIC said that through the establishment of 12-inch fabs with state funds and Shanghai IC Funds in the form of joint ventures, the company can speed up the introduction of advanced manufacturing processes and products with the support of the government industrial funds, Manufacturing capacity expansion caused huge cash investments and huge depreciation costs.At the same time, the company believes that with the National Grand Fund and Shanghai IC Fund through joint ventures and capital increase agreement, and the proposed transaction to establish a partnership, in line with the company And the overall interests of shareholders, is conducive to the sustainable development of the company.
Long-term appearance should look, SMIC transformation is inevitable
Throughout 2017, SMIC recorded sales of US $ 3.101 billion, gross profit of US $ 741 million and annual gross profit margin of approximately 23.9%. The annual growth rate was in line with the industry average while the gross profit margin dropped from 30.2% in the same period of previous year 23% during the period.
In the previous three years, SMIC promoted double-income and profit growth with its high capacity utilization rate. In the past two years, it entered a transitional period in which technology and factories were prepared for the next phase of growth.
In this regard, Zhao Haijun pointed out that SMIC is currently in the transitional transition period, in order to quickly meet the customer's technical relocation to prepare for the ever-changing industry environment.At present, the entire semiconductor industry is more and more change, competition and price pressures are However, as China's largest and most advanced foundry, SMIC will actively seize this rare opportunity.
In fact, SMIC's sources of income are diversifying. For example, last year's revenue from automotive and industrial applications doubled from revenues in 2016. Future growth drivers include: 28nm, flash memory, fingerprint sensor and power management chip, automotive and industrial applications, etc. .
In addition, he also stressed that revenue from China IC design business customers are also gradually increasing the proportion of revenue, the momentum will continue.Q4 revenue share in China rose from 45.7% in the previous quarter to 51.3%.
In addition to the strategic transformation, Liang Mengsong joined since SMIC layout of advanced technology moves frequently.According to micro-network understanding, SMIC's fourth quarter 2017 capital expenditure of 498.7 million yuan, compared with the third quarter of 2017 to 451.1 million yuan . SMIC said the capital expenditures for wafer fab operations in 2017 amounted to 2.4584 trillion yuan, of which 948 million yuan and 5.105 billion yuan were spent on the majority-owned Beijing 300mm and Shenzhen 300mm fabs, respectively The capital expenditure on non-fab operations in 2017 was $ 29.5 million, mainly for the construction of employee living complexes.
As a result, R & D expenses and capacity expansion expenditures for advanced processes, as well as substantial increases in depreciation expense, have fed back Q4's financial performance as the gross profit margin has declined.
However, observing its peers, TSMC, was able to earn the maximum profit in the industry precisely because of its high gross margin in advanced technology and ASP. SMIC has stepped up the pace of advanced technology, coupled with the National Fund vigorously Support, joined by Liang Mengsong a powerful boost, although now SMIC in the transformation phase of cost Expenditure will erode part of the profit, gross profit margin, capacity utilization has declined to some extent, but in the long run, earnings growth must also be based on capital and research and development Based on input.
It is believed that with the introduction of advanced process products from SMIC, the financial performance will also be dazzlingly enhanced, and the 14nm revenue will be an important node. (Proofreading / Fan Rong)
2. SMIC 14 nanometer wafer technology products or put into operation in the first half of 2019
Set the micro-mesh news, SMIC announced yesterday performance report, the company's fourth-quarter profit year-on-year by half due to the decline in revenue and gross margin from 30.2% a year earlier fell to 23% during the period.However, the company expects the first Quarterly revenue will grow 7% to 9% and gross margin to 25% to 27%, indicating that the first quarter of this year results should be improved.
In fact, SMIC recorded a year-on-year increase of 6.4% in revenue last year, which is similar to the growth rate of the foundry industry. The highlight of the company is the successful production of 28-nanometer technology products. Its revenue contribution rose to more than 10% in the fourth quarter of last year. , The sources of income are diversifying. For example, last year's revenue from automobile and industry doubled from 2016 revenue.
In fact, in the previous three years, the company boosted both revenue and profit growth with high capacity utilization rate, while in the past two years it entered a transitional period in which technology and factories were prepared for the next phase of growth and its future growth drivers included : 28nm, flash memory, fingerprint sensor and power management chip.
Zhao Haijun, co-chief executive of the company, said in a report that revenue in 2017 increased by 6.4% YoY, in line with the growth rate of the foundry industry. The success of the 28nm technology product portfolio contributed over 10% of revenue in the fourth quarter of last year. The 28% share of operating revenue of the quarterly nanotechnology products increased gradually to 11.3% .He explained that the decrease in gross margin in the fourth quarter was mainly due to the substantial increase in research and development expenditures on advanced processes.
Gao Yonggang, CFO of the company, said the group is developing 14-nanometer wafer technology products. Earlier, the Group entered into a joint venture with SMIC Shanghai, National Integrated Circuit Fund and Shanghai IC Fund to increase Nanfang Nanchang. After the injection, SMIC Southern Of the registered capital increased to 3.5 billion; the company in the SMIC will be reduced from 100% stake to 50.1%; while the National IC Fund and the Shanghai IC Fund total 49.9% stake in SMIC South, the timetable is expected this year In June and December refinancing, will exceed 1 billion in amount.Co., Ltd. Co - CEO Liang Mingsong added that the target is put into operation in the first half of 2019, the product will have higher efficiency and lower cost, easy to integrate into the equipment.
The company expects to spend $ 1.9 billion on capital expenditures in 2018 fab operations, 40% of which will be used to expand Beijing's 12-inch fabs and Tianjin's new projects, while the rest will continue to expand its technology platform and buy R & D facilities Liang Mengsong also pointed out that since taking office, the Group has stepped up its R & D team in the past 4 months to enhance its efficiency and adaptability. In the future, it will continue to lead the group in developing high-end wafer technology.
3. January 2018 China's integrated circuit imports volume and price increase
Set micro-grid news, data released from the CMB Large Database show that in January 2018 China's imports of integrated circuits 34.22 billion, an increase of 40.8% .According to the data of the Research Institute of Industry, is expected in February China's imports The number of integrated circuits is 35 billion or so.
It is reported that in 2017, China imported 374.82 billion integrated circuits of all kinds, with a positive growth trend for the rest of the months except December.
The company is located in:
From the import point of view: In addition to the negative growth in March and April of 2017, the rest of the month showed a positive growth trend.According to the latest data from the Institute of Industry and Commerce, in January 2018, the amount of China's IC imports was 25.09 billion U.S. dollars, up An increase of 59.9%.
4. ChinaCar will plan to establish a semiconductor R & D center in the UK
At a Glance: Dynex, a parent company based in China, is planning a semiconductor R & D center in the UK that will employ as many as 200 engineers over the next three years and will supply two British subsidiary of Zhuzhou Zhonglun Automobile (CRRC) Dynex and Soil Machine Dynamics provide additional research capabilities.
CRRC Times Electric, a developer of control systems for railways and electric vehicles in China, said it plans to set up the Times Electric Innovation Center (TEIC) in Birmingham, England, in the first half of 2018. It will focus on the research of cutting-edge high-power semiconductor product technologies And development.The company said the research center's results will apply to key growth markets, including electric vehicles, rail traction, aerospace, power distribution and renewable energy.
The establishment of TEIC is part of Zhuzhou CSR Times Dynex's acquisition of Dynex in the United Kingdom as part of its strategy of global semiconductor technology in China. "Dynex and Soil Machine Dynamics will receive free access to new semiconductor-related products developed by TEIC in the future.
According to the statistics, CSR (now China Automotive) acquired Danix Semiconductor in October 2008 and obtained strategic resources to complement the existing CSR power semiconductor industry in China. In pursuit of greater development, CSR established The world's first power semiconductor devices in the strategic goal of the successful completion of the Danisco Company in late 2009 refinancing to further increase investment in the power semiconductor industry, efforts to enhance the production capacity of six-inch IGBT chip; at the same time the world's level of power Semiconductor R & D Center, continue to develop the world's leading IGBT devices.
In the past, China's locomotive and vehicle IGBT modules must be imported from Germany and Japan, especially in the high-grade IGBT devices, there is no Chinese place.In 2008, with the speeding up of high-speed rail, demand doubled, an eight-column EMU will need 152 chips, the cost of up to 2 million yuan each year China needs 100,000 chips, the total amount of up to 1.2 billion.
After several years of research and development investment, at present, China has full control of IGBT chip technology research and development, module packaging and testing and system applications.The technology can be comparable with the world's leading companies, while the price is far below the competition.
5. Upgrade 'China core'
Hunan Daily reporter Zhou Yuegui correspondent Jiang Yangmin
Through the transparent glass baffle, you can see pink uniform technicians and blue uniformed personnel who are "heavily armed" from head to toe. They are busy in front of an instrument and the entire workshop is more like a surgical operating room Or biochemical laboratory.
On February 8, the reporter went to Zhuzhou Zhongshi Times Electric Co., Ltd. (hereinafter referred to as "Times Electric"), a subsidiary of Zhuzhou Electric Locomotive Research Institute Co., Ltd. (hereinafter referred to as 'Zhongzhiku Zhuzhou Co., Ltd.'), visited The just-formed third-generation power semiconductor device SiC (silicon carbide) chip production line.
The production line is the first 6-inch SiC chip production line in China, which won the support of key projects such as the national '02' special project and the National Development and Reform Commission special new materials project.
All personnel must wear white uniforms and shoes before entering the access lane, but even if this is the case, you can only visit outside the workshop through glass. Employees inside the workshop have more stringent requirements and must wear a hood, mask , Gloves, put on the whole body tight uniforms.
'The workshop is cleaner than the operating room with very strict control of suspended particles, with no more than 10 suspended particles larger than 0.1 μm per cubic meter space; every single particle can potentially damage a chip.' 'SiC Products, Division of Electrical and Semiconductors, Age Development Minister Li Chengzhan said.