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Latest Blog Updates

Latest Blog Updates
Semiconductor lithography machine giants, where to go?
Semiconductor lithography machine giants, where to go?
By Maggie / March 28, 2024
On March 27th, according to foreign media reports, the Dutch government plans to inject at least 1 billion euros into lithography equipment giant ASML in order to retain its development in the Netherlands. Earlier this month, local Dutch newspaper De Telegraaf revealed that ASML plans to move the company out of the Netherlands. The report indicates that ASML has expressed its intention to the Dutch government, stating that it may expand or relocate elsewhere, with France being one of the options. According to the Dutch news agency, the Dutch government has established a special working group called "Beethoven Action", led by Prime Minister Mark Luther, to negotiate with ASML to address its concerns about local labor supply, regulatory policies, and supply chain security in the Netherlands. The latest news indicates that the Dutch government plans to allocate over 1 billion euros (approximately 7.8 billion yuan) in funding for the development of ASML headquarters, including infrastructure investment, housing, and the expansion of Eindhoven University of Technology, particularly to cultivate skilled technical talents for ASML. According to data, ASML is the world's largest lithography equipment manufacturer, with absolute dominance in this field. Its development in the Chinese market has exceeded 30 years. On March 27th, Minister of Commerce Wang Wentao met with visiting Dutch Minister of Foreign Trade and Development Cooperation Fan Lvwen. Both sides exchanged in-depth views on topics such as exporting lithography machines to China and strengthening cooperation in the semiconductor industry. Wang Wentao expressed his hope that the Dutch side will uphold the spirit of the contract, support enterprises in fulfilling their contractual obligations, and ensure the normal operation of lithography machine trade. To prevent security generalization, jointly maintain the stability of the global semiconductor industry and supply chain, and promote the sustained and healthy development of bilateral economic and trade relations. Fan Lvwen also stated that China is one of the most important economic and trade partners of the Netherlands, and the Netherlands is willing to continue to be a reliable partner for China. The Dutch export controls are not targeted at any country, and decisions are based on independent and autonomous assessments, while minimizing the impact on the global semiconductor industry and supply chain as much as possible under safe and controllable conditions.
Over 850 million 5G users in China
Over 850 million 5G users in China
By Maggie / March 27, 2024
The Ministry of Industry and Information Technology disclosed that China's telecommunications business steadily increased in the first two months. As of the end of February, the number of 5G mobile phone users reached 851 million, accounting for nearly 50% of the total mobile phone users; The total number of 5G base stations reached 3.509 million, a net increase of 132000 compared to the end of last year. The revenue from telecommunications services has steadily increased. In the first two months, the cumulative revenue from telecommunications services reached 292.3 billion yuan, a year-on-year increase of 4.3%; In the first two months, the three basic telecom enterprises completed Internet broadband business revenue of 44.06 billion yuan, up 6.7% year on year. Emerging business revenue has achieved significant growth, becoming a major highlight. In the first two months, three basic telecommunications companies completed mobile data traffic business revenue of 106.3 billion yuan, a year-on-year decrease of 1.6%. Three basic telecommunications companies are actively developing emerging businesses such as big data, cloud computing, and the Internet of Things. In the first two months, they achieved a total business revenue of 75.76 billion yuan, a year-on-year increase of 11.3%, accounting for 25.9% of telecommunications business revenue. Among them, cloud computing and big data revenue increased by 17.3% and 30.3% year-on-year, respectively, and IoT business revenue increased by 8.5% year-on-year. 5G users continue to grow. As of the end of February, the total number of mobile phone users of three basic telecommunications companies and China Broadcasting and Television reached 1.746 billion, a net increase of 2.409 million compared to the end of the previous year. Among them, the number of 5G mobile phone users reached 851 million, a net increase of 29.22 million compared to the end of the previous year; 48.8% of mobile phone users. The proportion of 5G base stations is nearly 30%, and as of the end of February, the total number of 5G base stations reached 3.509 million.
China and overseas semiconductor giants are two way rush
China and overseas semiconductor giants are two way rush
By Maggie / March 25, 2024
On March 21st, the Ministry of Commerce held a press conference, where a reporter asked questions about the semiconductor industry landscape. Spokesperson of the Ministry of Commerce, He Yadong, stated at the meeting that the semiconductor industry is highly globalized and has developed for decades, forming an industrial pattern of "you have me, I have you". This is the result of the comprehensive effects of resource endowment and market laws. China welcomes semiconductor manufacturers from various countries to invest in China As one of the world's largest semiconductor markets, China's importance in the semiconductor industry supply chain is self-evident. At the same time, China also welcomes and supports the development of foreign enterprises in China. He Yadong stated that China is committed to expanding high-level opening-up to the outside world and welcomes semiconductor companies from various countries to invest and cooperate in China, jointly contributing to the stable and healthy development of the global semiconductor industry chain. In March 2023, Minister of Commerce Wang Wentao stated during a meeting with Qualcomm President and CEO Anmeng, Apple CEO Cook, and Asma Global President Wen Ningke that China is steadfast in promoting high-level openness, steadily promoting institutional openness in rules, regulations, management, standards, and other areas, and is willing to provide a good environment and services for foreign-funded enterprises including Qualcomm, Apple, and Asma. Recently, the General Office of the State Council has issued the "Action Plan for Solidly Promoting High level Opening up to the Outside World and Strengthening Attraction and Utilization of Foreign Investment", which clearly proposes to actively support foreign investment projects in fields such as integrated circuits, biopharmaceuticals, and high-end equipment to be included in the list of major and key foreign investment projects, and allow them to enjoy corresponding support policies. Technology giants accelerating their deployment in China In fact, under the strong signal stimulation of the Chinese market, many overseas technology giants have been using practical actions to accelerate their development and layout in China recently. On March 22nd, Su Zifeng, Chairman and CEO of AMD Semiconductor, stated at the AMD AI PC Innovation Summit in Beijing that we have established an AI Excellence Center in China, responsible for the most important AI engineering and customer support, including developing next-generation algorithms and automotive AI solutions, and collaborating with Chinese universities and artificial intelligence companies to conduct big language model research. In addition, Su Zifeng also made a commitment to the Greater China region, which is AMD's main research and development center and AI excellence center. AMD empowers Chinese super large enterprises and conducts joint research and development and ecological co construction. On the same day (March 22), Apple CEO Cook also attended the opening ceremony of Apple's Shanghai Jing'an store. Regarding Apple's development in China, Cook recently stated, "I don't think there is anything more important about Apple's supply chain than China. In fact, over the past 30 years, we have been continuously expanding our supply chain in China and increasing investment.".According to Apple's 2023 financial report, the company's revenue in Greater China accounted for approximately 1/5 of the company's total revenue for the year. It is worth mentioning that Apple announced on March 12th that it will expand its applied research laboratory in China to support product manufacturing, including enhancing the capabilities of its Shanghai research center and opening a new applied research laboratory in Shenzhen. During meetings in Xi'an with Vice Governor Chen Chunjiang of Shaanxi Province, Standing Committee Member and Secretary of the Party Working Committee of Xi'an High tech Zone Ma Xianping, and Deputy Secretary of the Party Working Committee of Xi'an High tech Zone Chen Hui, Executive Vice President and Chief Financial Officer Mark Murphy and other senior executives of Micron also stated that as an important leading enterprise in Shaanxi, Micron has always insisted on investing in China, rooted in China, and assisting local economic and industrial upgrading.
Even large storage companies dare not sell their old equipment
Even large storage companies dare not sell their old equipment
By Maggie / March 20, 2024
South Korean storage giants Samsung Electronics and SK Hynix have stopped selling second-hand chip manufacturing equipment due to concerns about violating US export controls and Western economic sanctions against Russia. South Korean storage giants Samsung Electronics and SK Hynix have stopped selling second-hand chip manufacturing equipment due to concerns about violating US export controls and Western economic sanctions against Russia. These two companies are no longer selling old machines, and these devices are piled up like mountains in the warehouse. If these devices accidentally fall into the hands of China or Russia, it may damage the relationship with the United States. After the United States implemented a semiconductor ban on China in 2022, these chip manufacturers began hoarding old machines and not selling them. Samsung and SK Hynix are the main second-hand equipment suppliers in the market, and due to the continuous renovation of process technology, the turnover rate of these hardware devices is also very fast. They usually pack several old machines together and sell them to distributors, and then sell them by auction. Chinese chip manufacturers are the largest customers, mostly used in household appliances and automobiles, and some require lower end chips. Devices that are not needed in South Korea can be sold to China for refurbishment and installation, but they all belong to the category of less advanced processes. However, even with old equipment that has been in use for 10 years, such as exposure machines for producing logic and storage chips, once refurbished, they can still be used to manufacture high-end chips. SK Hynix, whose warehouse is already packed, has begun to sell some second-hand machines, but try to avoid selling American made wafer grinders and etching machines. The South Korean government is also aware that old devices from Samsung or SK Hynix will inevitably enter the Chinese market, which will be detrimental to the relationship between South Korea and the United States. Samsung and SK Hynix both have storage chip factories in China, accounting for approximately half of their respective production capacity. However, these two South Korean companies have obtained indefinite immunity to move American made machines into China for use. These chip manufacturers have also placed their old equipment in China, citing that in case the US government further strengthens export controls in the future, semiconductor companies may need lower end old machines. SK Hynix's senior management in China believes that the company is well aware that the United States may suspend immunity at any time, and therefore is not willing to dispose of old equipment. There are several ways to dispose of second-hand machines, such as selling them to others, storing them in warehouses, or simply scrapping them. But even if there are not thousands of old devices here, there are at least hundreds, worth millions of dollars. However, currently the company's senior management still chooses to pile them up in the warehouse first.
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