SMIC sells all of its shares in SMIC Changjiang Electronics, which may benefit the latter to develop advanced packaging
Source: China Electronics News 2021-04-26
On the evening of April 22, SMIC announced that it intends to transfer all the equity interests of its holding subsidiary SJSemiconductor Corporation (Semiconductor Semiconductor), accounting for 55.87% of the total issued share capital of the target company; the total consideration for this transaction is total Approximately 397 million U.S. dollars, and recorded transaction gains of approximately 231 million U.S. dollars (unaudited).
According to data, SMIC was established in 2014. SMIC, the National Integrated Circuit Industry Investment Fund, Changjiang Electronics Technology, and Qualcomm own 55.87%, 29.31%, 8.62% and 5.86% of the shares respectively. SMIC’s Jiangyin base is China’s first 12-inch semiconductor mid-section silicon wafer processing company, focusing on 12-inch bump packaging technology; Shanghai base provides 8-inch bump packaging technology. At the same time, the company has test plants in Jiangyin and Shanghai, which can provide test program development, probe card production, wafer testing, failure analysis and failure testing services.
In 2016, SMIC's 14-nanometer bump processing was mass-produced, and in 2017, SMIC's bump processing was advanced to 10 nanometers. According to experts, bump processing is one of the basic processes for mid-stage silicon wafer manufacturing. This technology is widely used in mobile smart chips that emphasize high performance, low power consumption, and small size. With integrated circuit technology approaching physical limits, the cost of a single transistor can hardly be significantly reduced as in the past. People began to focus on the system integration level to find solutions, that is, through advanced silicon-level packaging technology, the die of different process technology generations are packaged in a silicon-level system, taking into account performance, power consumption and transmission. Speed requirements. This has led to tremendous changes in the structure of the integrated circuit industry, breaking the traditional division of labor between front and rear chip processing. In order to realize the interconnection between silicon wafer-level chips, intermediate processes such as bump processing, rewiring, and through-silicon vias have been produced. Bump processing is one of the important development directions of semiconductor manufacturing technology.
The reason why SMIC chose to sell its shares in SMIC Changjiang Electronics, Jiwei Consulting Chief Analyst Han Xiaomin, believes that due to the Sino-US trade friction and other international environments, SMIC’s current advanced technology development is restricted, and SMIC’s current advanced technology development is restricted. The business synergy effect of Changjiang Power is difficult to reflect. The development of SMIC is of great significance to the development of domestic advanced packaging technology. Doing the necessary cutting with SMIC will help SMIC's sustainable development.