January 23, 2021
As we all know, in my country's integrated circuit industry chain, the packaging and testing industry is the only industry that can fully compete with international companies, and capital is more inclined to the packaging and testing industry. The domestic first-tier packaging and testing plants not only increase production lines through the capital market to raise funds, upgrade technology and products to improve product production capacity, quality and technical level, but also achieve a substantial increase in production capacity and technological upgrade iterations through mergers and acquisitions ; At the same time, there are also some packaging and testing factories following closely, leveraging the sci-tech innovation board to continue to strengthen themselves; and some "small and beautiful" third-party packaging and testing factories are also looking for development opportunities. The "warmness" of my country's semiconductor packaging and testing market has caused many companies to make efforts in this field, so what new goals and plans do they have?
The integrated circuit packaging and testing industry has the characteristics of capital-intensive and rapid technology update, and its scale and capital advantages are crucial. As companies in the same industry continue to expand their production scale through mergers and acquisitions and capital operations in recent years, the concentration of the packaging and testing industry has increased significantly. This can be fully reflected in the revenue of the top ten domestic packaging and testing vendors.
Judging from the revenue of the top ten packaging and testing plants in 2019, the revenue of the top three Changjiang Electronics Technology, Tongfu Microelectronics and Huatian Technology far exceeds the revenue of the enterprises after the fourth place. On the whole, my country Except for these three major manufacturers, local packaging and testing are all small in scale. It can be seen that the revenue of the last five is relatively small, and the volume is about several hundred million yuan.
However, the current major domestic packaging and testing companies have gradually mastered the main technology of advanced packaging, and can compete with international packaging and testing companies such as ASE, Silicon and Amkor Technology. With the continuous development of demand and technology for 5G communication networks, artificial intelligence, automotive electronics, smart mobile terminals, and the Internet of Things, the market demand continues to expand, which is more conducive to the further expansion of domestic packaging and testing manufacturers.
According to Accenture, the global 5G chip market will reach USD 22.41 billion by 2026, providing good development opportunities for domestic packaging companies. The demand for automotive electronics applications and the promotion of policies will bring about the growth of integrated circuits, especially packaging. At the same time, under the active guidance of the state, enterprises in the industry are also actively exploring the development of integrated circuits in the field of automotive electronics. Looking forward, it is predicted that by 2023, the demand for integrated circuit packaging in automotive electronics is expected to exceed 18 billion yuan.
Moore's Law and advanced processes have been promoting the development of the semiconductor industry, and the packaging industry also needs new technologies to support new packaging needs, such as high-performance 2.5D/3D packaging technology, wafer-level packaging technology, high-density SiP system-in-package technology , High-speed 5G communication technology and memory packaging technology will become the mainstream technology and direction for the packaging industry to follow up the industry trend.
Although my country's packaging and testing industry has made certain progress and has a place in the world, from a global perspective, my country's development in the field of semiconductor advanced packaging and testing is still a long way to go. To this end, major packaging and testing factories, especially Changjiang Electronics Technology and other packaging and testing manufacturers, are also moving towards higher-level packaging processes and stronger production capacity.
Head OSAT manufacturers marching towards high-end
First of all, what is OSAT? OSAT, the full name of Outsourced Semiconductor Assembly and Testing, literally means "outsourced semiconductor (product) packaging and testing." It is the industrial chain link of IC product packaging and testing for some Foundry companies.
Representative domestic OSAT manufacturers mainly include Changjiang Electronics Technology, Tongfu Microelectronics, Huatian Technology and Jingfang Technology. Changjiang Electronics Technology is ranked third in the world and number one in mainland China. According to the statistics of Top Industry Research Institute, Changjiang Electronics Technology's market share among the top 10 outsourced IC packaging and testing plants in the world in the first quarter of 2020 It has reached 13.8%; in 2019, Tongfu Microelectronics achieved a total operating income of 8.267 billion yuan, a year-on-year increase of 14.45%. For two consecutive years, it ranked second in the domestic industry and sixth in the global industry. Huatian Technology's sales revenue in 2019 was 8.1 billion yuan, ranking third in the packaging and testing industry in mainland China.
As the packaging and testing industry is characterized by high customer stickiness, acquisitions between enterprises can bring long-term and stable business to the company. In recent years, by leveraging the capital market, domestic listed companies such as Changjiang Electronics Technology, Tongfu Microelectronics, and Huatian Technology have achieved rapid development. Although domestic-funded packaging and testing companies currently account for a relatively low proportion of advanced packaging technology sales, they have made substantial breakthroughs and gradually narrowed the technological gap with foreign manufacturers, which has greatly promoted the development of my country's packaging and testing industry.
After the acquisition of Xingke Jinpeng in 2015, Changjiang Electronics Technology has absorbed a group of international professionals. The company also has high-end packaging technology capabilities such as Fan-out, double-sided packaging SiP, eWLB, WLCSP, and BUMP. In addition, Changjiang Electronics Technology's business has grown rapidly in recent years. The company's packaging products have been recognized by leading international companies in Europe, North America and other regions, and semiconductor bump products have been used in the products of international TOP10 mobile phone manufacturers.
In August 2020, the plan issued by Changjiang Electronics Technology pointed out that the total amount of funds raised by the non-public offering will not exceed 5 billion yuan, which will be mainly used for the annual production of 3.6 billion high-density integrated circuits and system-level packaging modules and the annual output of 10 billion. High-density hybrid integrated circuit and module packaging project for block communication. Among them, after the completion of the 3.6 billion project, the annual production capacity of 3.6 billion DSmBGA, BGA, LGA, QFN and other products will be formed in high-density integrated circuits and module packaging for communication. After the project with an annual output of 10 billion is completed, it will form a production capacity of 10 billion DFN, QFN, FC, BGA and other products with an annual output of 10 billion pieces of high-density hybrid integrated circuits and module packaging for communication.
According to Yole's forecast, by 2023, the SiP packaging market for RF front-end modules will reach US$5.3 billion, with a compound growth rate of 11.3%. Faced with strong market demand and huge market opportunities, Changjiang Electronics focuses on high-density packaging. Through the implementation of the above two fund-raising projects, Changjiang Electronics Technology can further develop SiP, QFN, BGA and other packaging capabilities to better meet The demand for packaging in terminal applications such as 5G communication equipment, big data, and automotive electronics will further promote the development of 5G technology in China's commercial field.
The second-ranked Tongfu Microelectronics through the acquisition of Tongfu Chaowei Suzhou and Tongfu Chaowei Penang, and formed a "joint venture + cooperation" strong alliance model with AMD, further enhancing the company's advantage in customer groups . At the same time, at the technical level, Tongfu Chaowei Suzhou, a subsidiary of the company, has become a national high-end processor packaging and testing base, breaking the foreign monopoly and filling the gap in my country's CPU and GPU packaging and testing fields.
On November 24, 2020, Tongfu Microelectronics issued an announcement stating that the company has reviewed and approved the "Proposal on Signing the Tripartite Supervision Agreement for Raised Funds", and the total amount of raised funds is 3.27 billion yuan. According to the announcement information, the raised funds are mainly used for IC packaging and testing projects such as the second phase of integrated circuit packaging and testing, the construction of intelligent packaging and testing centers for automotive products, and high-performance central processing units.
In the fixed increase plan released by Tongfu Microelectronics in February last year, it was also shown that after the completion of the second phase of the integrated circuit packaging and testing project, an annual output of 1.2 billion integrated circuit products (including: BGA 400 million, FC 200 million, CSP /QFN 600 million pieces), wafer-level packaging production capacity of 84,000 pieces. After the completion of the construction of the intelligent packaging and testing center for automotive products, the annual production capacity for packaging and testing of automotive products will be increased by 1.6 billion yuan. After the high-performance central processing unit and other integrated circuit packaging and testing projects are completed, the annual production capacity of high-end integrated circuit products in packaging and testing will be 44.2 million.
At present, the development of emerging industries and smart industries has increasingly higher requirements for integrated circuit products. Although most of Tongfu Microelectronics products are relatively mature in technology and have rich production experience, in order to cope with some twists or repetitions in the industrialization process of individual new technologies, new processes, and new products, the company introduced high-level R&D talents, mergers and acquisitions. High-end packaging and testing assets, focusing on new products with high technical content and high market demand.
Huatian Technology was originally a packaging company in the traditional integrated circuit industry. After listing, it strives to upgrade to the mid-to-high-end packaging and advanced packaging fields, and deploys across the country. The company's main production bases are in Tianshui, Xi'an, Kunshan, and Unisem, and the Nanjing base was added later. The first phase of Nanjing was officially put into production in July 2020 and was running smoothly, and has now entered the second phase of implementation. The company will accelerate the construction of the second phase of the Nanjing company based on the current market conditions and customer needs.
It is understood that the Nanjing base of Huatian Technology is mainly planned for the packaging and testing of integrated circuit products such as memory and MEMS, covering the entire series of lead frame, substrate, and wafer level. Memory is an important growth point of the domestic integrated circuit industry in the future, and memory packaging has also become the largest application field of integrated circuits. After years of research and development, the company has mastered the packaging technology from low-capacity to large-capacity memory, and realized mass packaging of Nor Flash, 3D NAND, and DRAM products.
Benefiting from the acceleration of domestic substitution and the improvement of the industry's prosperity, the integrated circuit industry continued to continue its good prosperity in the second quarter in the third quarter. At present, Huatian Technology's production bases in Tianshui, Xi'an, Kunshan, Nanjing and Unisem are full of orders, and the production lines are running at full capacity.
In addition, Jingfang Technology is also worth mentioning. Jingfang Technology is a global developer of 12-inch wafer-level chip-scale packaging technology, and it also has the mass production capacity of 8-inch and 12-inch wafer-level chip-size packaging technology. The packaged products mainly include image sensor chips and biometric identification chips. Wait. By integrating the acquired Zhiruida technology assets and technology, and effectively integrating them with the company's existing packaging technology, the company's technical comprehensiveness and extensibility have been further improved.
It issued a fund-raising announcement in March 2020. This fund-raising investment project is used to build integrated circuit 12-inch three-dimensional TSV and fan-out module production projects. It is based on the company’s existing business to provide automotive electronics and intelligent manufacturing. An important development strategy for the expansion of high-end application fields such as 3D sensing.
Packaging and testing plants that have accumulated power through IPO
In addition to the new changes brought about by the head packaging and testing plants drastically welcoming new markets, there are also some domestic packaging and testing plants that are accelerating their progress through the IPO of the science and technology innovation board. Among them, Blue Arrow Electronics, which had its IPO on the Sci-tech Innovation Board on December 31, 2020, Liyang Chip, which was listed on the Sci-tech Innovation Board on November 11, 2020, and the IPO on the Sci-Tech Innovation Board, on November 9 Style technology.
The predecessor of Lanjian Electronics is Lanjian Co., Ltd., and the predecessor of Lanjian Co., Ltd. is Foshan Radio No. 4 Factory. It is an enterprise owned by the whole people. In 1998, it was approved to restructure into a limited liability company. Blue Arrow Electronics is also a semiconductor packaging and testing manufacturer (OSAT). While manufacturing its own brand semiconductor devices, it also provides semiconductor packaging and testing (OEM mode) for Fabless and IDM.
In the packaging field, before 2012, Blue Arrow mastered discrete device packaging technology. Since its establishment, Blue Arrow Electronics has gradually stepped into integrated circuit product manufacturing and packaging testing. At the same time, continuously improve the level of packaging technology, actively invest in research and development, and explore advanced packaging technology.
According to the prospectus of Blue Arrow Electronics, the total investment of its fund-raising projects is expected to be 500 million yuan. The capital projects include advanced semiconductor packaging and testing expansion projects and R&D center construction projects. In addition, Blue Arrow Electronics’ current research projects include a number of key projects such as key technology research on GaN high-speed power switching device packaging based on large-size silicon substrates. In the future, it will also develop advanced packaging based on CSP, FlipChip, FanOut/In, and 3D stacking. Technology research and research based on advanced packaging platforms such as BGA, SIP, IPM, MEMS, etc.
Liyang Chip, which was listed on the Science and Technology Innovation Board last year, is a well-known independent third-party integrated circuit testing service provider in China. Its main business includes integrated circuit testing program development, 12-inch and 8-inch wafer testing services, finished chip testing services, and integration The supporting services related to circuit testing are mainly for testing fingerprint identification chips, which account for 20% of the global fingerprint identification testing market. On September 22, 2020, the total amount of funds raised from the initial public offering of Liyang Chips was 536 million yuan. The investment projects and the use of funds raised from the public offering of shares are used for chip testing capacity construction projects and R&D center construction projects.
Another packaging and testing company, Qipai Technology, which has broken through the IPO, has seven series of packaging and testing products including Qipai, CPC, SOP, SOT, QFN/DFN, LQFP, and DIP, totaling more than 120 varieties. According to its IPO prospectus, Qipai Technology plans to publicly issue no more than 26.57 million A shares and raises 486 million yuan. After deducting issuance costs, it will invest in high-density large-matrix miniaturization advanced integrated circuit packaging and testing expansion projects and R&D center (expansion) construction project. After the investment project with funds raised this time reaches production capacity, the new production capacity will be 1.61 billion pieces/year, of which QFN/DFN, CDFN/CQFN, and Flip Chip will add 1 billion pieces, 220 million pieces and 240 million pieces respectively.
"Small and beautiful" third-party packaging and testing plants looking for good opportunities
In addition to professional OSAT, there are also third-party professional test manufacturers, packaging and testing integrated companies, and foundry companies in the integrated circuit industry chain. These three types of manufacturers can provide wafer testing or finished chip testing services. They all serve chip design companies. Compared with other categories, domestic third-party professional testing vendors started late, their distribution is more scattered, and their scale is smaller. However, as the chip manufacturing process continues to break through the physical limits, chip functions are becoming more complex, and capital expenditures are increasing. More and more wafer manufacturers and packaging manufacturers are gradually reducing their investment budgets for testing. In addition, there is insufficient production capacity, especially in recent semiconductors. Production capacity is tight across the board. Not only is the supply of the foundry capacity in the front stage in short supply, but there is also a serious shortage of production capacity in the later stage of packaging and testing, which gives the independent test industry a good opportunity for development.
These "small and beautiful" third-party packaging and testing factories provide different testing services, and each has its own advantages. Some only provide packaging, some only provide testing, and some integrated packaging and testing. For example, Peyton Technology, a high-end memory packaging and testing company under Shenzhen Technology, the aforementioned Liyang chip, which has a market share of 20% in the global fingerprint recognition and testing market, and Hualong Microelectronics, a power device packaging and testing plant, and providing engineering Moore Elite, who approves quick packaging and SiP packaging, and Xinzhe Technology, which focuses on power management chip packaging and testing, and so on.
Peyton Technology was originally a wholly foreign-owned enterprise invested and constructed by Kingston Technology in the United States, and was later acquired by Shenzhen Technology. Peyton Technology is mainly engaged in high-end memory chip (DRAM, NAND FLASH) packaging and testing services. At present, Peyton Technology has realized the mass production of dynamic storage particles DDR4 and DDR3. The monthly packaging and testing output has reached more than 50 million. It has the mass production capacity of LPDDR4, LPDDR3 and solid-state hard disk SSDs. The monthly packaging and testing capacity can reach 6 million. Pieces.
On April 2, 2020, Shenzhen Technology issued an announcement stating that its wholly-owned subsidiary Peyton Technology and the Hefei Economic and Technological Development Zone Management Committee signed the "Strategic Cooperation Framework Agreement." According to the announcement, Peyton Technology or an affiliated company invested in the construction of advanced integrated circuit packaging and testing and module manufacturing projects in the Hefei Economic Development Zone, mainly engaged in integrated circuit packaging and testing and module manufacturing. The project is expected to have a total investment of no more than 10 billion yuan, covering an area of about 178 acres. It is planned in one time and constructed in phases. The specific investment amount and scale are subject to the approval of the government authority.
There is also a third-party packaging and testing factory that has a unique method. In order to speed up the speed of chip proofing and verification and solve the design and production requirements of chip engineering batch packaging, Moore Elite began to build a rapid packaging center in 2018 to provide customers with full The one-stop chip packaging service has been in full production since it opened in 2019, serving thousands of chip design companies and scientific research institutions, and now 300 batches of engineering batch packaging products are delivered every month.
It is understood that the monthly production capacity of Moore Elite's Hefei fast-sealing line is 1KK, which can meet the engineering batch and fast-sealing needs of multiple customers. Coupled with the rapid development of its SiP business in recent years, the development plan has gradually entered a mature mass production period. In 2021, Moore Elite plans to build a new SiP packaging engineering center, build its own factory and production capacity, and cooperate with the overseas ATE test equipment acquired this year to ensure rapid response to customer needs during product verification and commissioning. After completion, it will provide an annual output of nearly 100 million units. SiP packaging and testing capacity.
In addition to the packaging and testing vendors mentioned above, HOREXS chip packaging substrate manufacturers, there are many domestic packaging and testing plants that are contributing to my country's packaging and testing industry. At present, mainland packaging and testing companies are the first to join the division of labor in the global integrated circuit industry chain. Whether it is a leading packaging and testing manufacturer or a "small and beautiful" third-party packaging and testing plant, they fully enjoy the industry dividends brought by the growth of the global semiconductor industry. In the context of the steady growth of the global packaging and testing industry, as the most mature link in localization, with the help of capital, the share of mainland manufacturers will continue to increase.