Taiwanese investment in A shares is gradually becoming a trend
According to UMC's plan, Hejian Technology expects to increase capital to issue 400 million new shares and raise 2.5 billion yuan of funds. Part of the funds raised will be used to expand the monthly capacity of 10,000 pieces of an 8-inch wafer foundry under Hejian Technology. It will be completed in the second quarter of next year. At the same time, it will also be used to improve the financial structure of the core integration. In the future, the monthly capacity of the integrated core will be expanded from 15,000 to 25,000. For the integration of the core, the financial pressure is quite high. huge.
This is after Foxconn Industrial Internet successfully landed in A-shares, another company with a Taiwan-funded background plans to list on A-shares. At present, more and more Taiwan-funded companies are landing (or planning to land) capital markets in mainland China. In addition to the Foxconn Industrial Internet, which was listed on the Shanghai Stock Exchange on the 8th, the companies listed in mainland China by the Taiwanese companies in China are also the Sunwon Electronics, which is owned by ASE, the Axiang integrated by Axiang, and the Huaying Technology of Huaying. The Shanghai Stock Exchange shares. The companies planning to list in the A-share market include Nanqiao, Huge Machinery, Yuding and Rongcheng, and Lianhe Electronics and Ship Technology are the latest entrants. However, some analysts believe that at present A Under the background of the weak market, the resistance of the listing of Hejian Technology is not small. Recently, Foxconn Industrial Internet A shares have not performed well, and the listed honeymoon period is only 4 trading days, which falls below expert glasses. People are worried that the ship technology will repeat the same mistakes.
Leveraging resources in the Chinese mainland market
According to UMC, the main purpose of the launch of Hejian Technology A-shares is to raise funds. The second is to stabilize the talent team. Liu Qidong, the chief financial officer of UMC, pointed out that Lianxin integration has just started, and the current working capital is mainly to local banks. The debt ratio has approached 70%. If the capital market can obtain lower cost funds, the financial structure will be significantly improved. In addition, the technology brain drain rate of Hejian Technology last year is as high as 15% to 20%. The reward mechanism of equity links will definitely help to retain talent.
For these two reasons, the industry's analysis also generally agrees. Semiconductor expert Mo Dakang believes that Lianxin currently has a monthly capacity of about 17,000 pieces. According to the previous plan, it will expand its production capacity by 25,000 pieces per month by the end of 2018. Capital support is still not low. Hejian Technology currently has a monthly capacity of 65,000 pieces, and it plans to increase its monthly production capacity from 65,000 to 75,000 in the next six months. Financing, you can get a more diversified source of funds, reduce financial pressure.
In addition, retaining talents through listing is also the main reason for UMC to promote the listing of ships. At present, the global semiconductor industry is fiercely competing for talents. The company's listing can provide more incentives for employees, which helps the stability of the personnel team. Talent has an important impact, but it can also attract more talents to join.
Promoting the listing of Hejian Technology is also very important for the expansion of UMC's overall group business and global layout. Wang Zhaoli, a strategist at Polaris Securities, analyzed that UMC's operating strategy has been adjusted in recent years, no longer chasing advanced technology, and pursuing profit-oriented. Future Capital Expenditure will be dominated by China's Hejian and Lianxin. According to TrendForce, the world's top five foundries in the first half of 2018 are divided into TSMC, Grofund, UMC, Samsung and SMIC. The market share (in terms of revenue) is 56.1%, 9.0%, 8.9%, 7.4% and 5.9%. If UMC wants to further expand its market share and even surpass Grofund, then with the help of China's market resources, It is a very important step for Hejian Technology to be listed on the Shanghai Stock Exchange, to expand the production capacity of the ship and the core, and to compete in the market.
The impact on Chinese semiconductors remains to be seen
In order to promote the development of the integrated circuit industry, China's wafer manufacturers are also actively expanding the scale of production capacity. SMIC has invested nearly 100 billion yuan to build a 12-inch production line in Shanghai with a process of 14 nanometers and below, with a monthly capacity of 70,000 pieces; In addition, SMIC is also investing in a 12-inch production line with a monthly capacity of 40,000 pieces in Shenzhen, and investing in Tianjin to expand the capacity of the original 8-inch factory in Tianjin, from 45,000 pieces/month to 150,000 pieces/month. The second phase of the 12-inch high-grade production line construction project has a total investment of 38.7 billion yuan and a planned monthly production capacity of 40,000 pieces. Hua Hong Hongli started construction of a 12-inch production line in Wuxi, with a capacity planning of 40,000 pieces per month. It is estimated that by the end of 2018, China's 12-inch wafer manufacturing capacity will be nearly 700,000 pieces per month, an increase of more than 40% compared with last year.
Recently, the pace of China's Taiwanese foundry rushing to the Chinese mainland market is accelerating. The 16-nanometer FinFET process of TSMC's Nanjing 12-inch factory has been mass-produced. UMC's 8-inch factory for integration and shipbuilding, the 12-inch factory of Lianxin And upstream IC design and semiconductor, with a variety of products, plus vertical integration upstream, I hope that in the rapid increase of pressure on the Chinese fab, to maintain the advantages of UMC's semiconductor development in China. Mo Dakang pointed out that if Lian Electronics and The successful launch of the ship technology will create greater competitive pressure on other foundries in mainland China.
Gu Wenjun, chief analyst of Xinmou Consulting, pointed out: 'Under various factors, Chinese-foreign joint ventures, Chinese subsidiaries with foreign investment will be more and more developed or listed in China. However, such joint ventures or subsidiaries do not necessarily have the right to purchase. , research and development autonomy, operational ownership, many may not be a complete company, may be a channel company, may also be a 'production workshop', and more likely may be a shell. If so, what is the significance of listing here? In this case, some enterprises can enjoy the advantages of overseas low taxation and talent research and development, and can enjoy the support of the Chinese government and the capital market. How do Chinese companies compete?