China Zhongji Investment completes a targeted investment in "Lian'ong Micro"
Recently, China Zhongji Investment completed a targeted investment in Hangzhou Lian'on Microelectronics Co., Ltd. (hereinafter referred to as "Lian'on Micro"; stock code: 605358.SH). Lian'on Micro is a leading integrated circuit company in China, with a one-stop manufacturing platform ranging from silicon wafers to chips. The company's main businesses include semiconductor silicon wafers, semiconductor power devices, and compound semiconductor radio frequency chips. Major products include 6-12 inch semiconductor silicon polished wafers and epitaxial wafers, 6-inch SBD, MOSFET, TVS, and 6-inch gallium arsenide microwave radio frequency chips, among three major categories. These products are widely used in downstream communications, computers, automobiles, consumer electronics, photovoltaics, smart grids, 5G, and the Internet of Things.
The company's semiconductor silicon wafer business is an industry leader, with one of the largest silicon wafer production bases in China and strong market competitiveness. In 2009, the company was the first in China to achieve mass production of 8-inch silicon wafers. Currently, its silicon wafer shipments account for 30% of the domestic market share. For many years, the company has been rated among the top ten semiconductor material companies in China and ranks first among domestic integrated circuit silicon wafer manufacturers. In addition to expanding its semiconductor silicon wafer business, the company continues to develop downstream high-end application markets. Its semiconductor power device business and compound semiconductor radio frequency chip business are both in a period of rapid development. In terms of semiconductor power devices, the company's photovoltaic Schottky chips account for 35% of the global market share. At the same time, the company has passed the system certification of Bosch and Continental, two leading international automotive electronics companies, becoming one of the few domestic SBD chip suppliers qualified for automotive power switches. In terms of compound semiconductor radio frequency chips, the company owns one of only two commercial gallium arsenide radio frequency chip production lines in China. The gallium arsenide radio frequency chip business requires significant upfront investment. In 2015, with the support of the Hangzhou municipal government, the company established Lian'on East Core, bringing in an overseas technical team led by Dr. Wang Yaozu, launching the gallium arsenide radio frequency chip project, and establishing the "Zhejiang Provincial Key Enterprise Research Institute for Radio Frequency Integrated Circuit Manufacturing Technology." In May 2019, the company completed the construction of an annual production capacity of 30,000 chips, and in June 2021, it completed the construction of an annual production capacity of 70,000 chips. Currently, the company's gallium arsenide radio frequency chips have been verified by dozens of major customers, and the business is in a stage of rapid growth in production and sales. Wu Fushun, Partner and Managing Director of China Zhongji Investment, said that there are no shortcuts or leaps in the integrated circuit manufacturing industry. Based on more than 20 years of research and development and technical accumulation in semiconductor materials, Lian'on Micro has formed a one-stop manufacturing platform from wafers to chips. At the same time, the company is actively developing next-generation products—12-inch silicon wafers and compound semiconductor businesses. The funds raised in this round of financing will mainly be used to expand production for 12-inch silicon wafers for integrated circuits, 6-inch semiconductor power chips, and 6-inch silicon epitaxial wafers. China Zhongji Investment is optimistic about Lian'on Micro's business development direction, is willing to support the company's growth, and jointly promote the domestication of semiconductor materials in China.
