China Zhongji Investment completed a targeted investment in "Zhongwei Company".
Recently, China Zhongji Investment completed a targeted investment in the private placement of AMEC Semiconductor Equipment (Shanghai) Co., Ltd. (hereinafter referred to as "AMEC", stock code: 688012.SH). AMEC is a leading global enterprise in the field of integrated circuit etching equipment, a high-end micro-processing equipment company based in China and serving the global market. It provides highly competitive high-end equipment and high-quality services to the integrated circuit and broader semiconductor industries.
The company is a leader in etching and MOCVD, with technology driving industry leadership. The company's CCP etching equipment has been widely used by leading domestic and international customers in integrated circuit manufacturing lines from 65nm to 5nm, 64-layer and 128-layer 3DNAND lines, and has received repeat orders for 5nm and below logic circuit production lines; ICP etching equipment is gradually maturing and has successfully entered the wafer production lines of more than ten customers at home and abroad. The company's MOCVD equipment continues to be mass-produced on a large scale on leading industry customer production lines, maintaining a leading position in the industry. According to SEMI's "Global Wafer Fab Forecast Report" in June 2021, 29 new wafer fabs will be added globally in the next few years, with equipment spending expected to exceed US$140 billion. Mainland China and Taiwan each have plans to build 8 new wafer fabs, ranking first globally. In addition, capital expenditures of leading foundries such as TSMC and SMIC have increased significantly in 2021. The expansion and commissioning of a large number of wafer fabs will drive up demand for upstream semiconductor equipment, which is expected to open up development space for domestic equipment. Judging from the subscription amount of this private placement, the Big Fund subscribed the most, reaching 2.5 billion yuan, accounting for 30% of the issuance amount of this private placement. CICC was allocated 406 million yuan, and two funds under Gao Yi were allocated a total of 540 million yuan. This large investment in AMEC is consistent with the investment direction of the Big Fund Phase II. The Big Fund Phase II will focus on investing in semiconductor equipment and materials, such as lithography machines, etching machines, large silicon wafers, and photoresists. Tan Runzhan, Partner and Managing Director of China Zhongji Investment, introduced that the application of new technologies and products such as 5G, Internet of Things, big data, artificial intelligence, and automotive electronics will bring huge demand for the semiconductor market, and the industry will enter a new round of upward cycle. Under the current situation where the United States continues to strengthen technological and equipment blockades, the pace of domestic substitution of semiconductor equipment is accelerating. With strong policy and financial support, domestic equipment companies are making continuous breakthroughs in etching, thin film deposition, testing, and other fields. Mainland China has become the world's largest semiconductor equipment market. Through this private placement, AMEC will further enhance its core competitiveness, ensure its high-speed growth, and continuously improve its market share.
