Wanye’s net profit in the first three quarters increased by 37.17%, and semiconductor equipment and materials platforms gradually took shape

On the evening of October 29, Wanye Enterprise (600641.SH) disclosed the 2021 third quarter report. According to the announcement, the company achieved operating income of 646 million yuan from January to September, an increase of 14.60% year-on-year; net profit attributable to shareholders of listed companies was 306 million yuan, an increase of 37.17% year-on-year; R&D investment increased by 757% year-on-year.

In recent years, the company has steadily promoted its rapid transformation into the integrated circuit industry through independent R&D and extensional mergers and acquisitions. After successive acquisitions of KST and Compart Systems, it has accelerated the completion of its strategic layout in the field of semiconductor equipment and materials.

The revenue of the first ion implanter is recognized, and CST is at the turning point of its operation and already has domestic substitute ability

In 2018, Wanye Enterprise took the lead in acquiring CST and became one of the few high-tech companies in the world that mastered the core equipment and technology of ion implanters in all fields. In May of this year, the KST low-energy large-beam ion implanter under Wanye Enterprise took the lead in completing the equipment verification and acceptance work in the domestic 12-inch mainstream integrated circuit chip manufacturing plant. This is also the first domestically-made low-energy large beam equipment that has completed mainstream customer verification and confirmed revenue. It marks a breakthrough in the commercialization of domestically-made equipment in the mature technology field, which represents my country’s core front-end equipment for integrated circuit ion implanters. China already has the ability to substitute domestically.

At the same time, KST’s heavy metal ion implanter and ultra-low temperature large beam ion implanter have also been delivered to the customer. The high-energy ion implanter equipment is assembled according to the customer’s delivery plan, and the company has signed one with another 12-inch chip manufacturer in China. Orders for low-energy large-beam ultra-low temperature ion implanter and 1 high-energy ion implanter.

At present, chip supply in the global semiconductor market is tight and chip demand has exploded, and wafer manufacturers have increased capital expenditures to expand production. According to the data from Jiwei Consulting, the current capacity of wafer fabs in mainland China is equivalent to about 1.62 million wafers per month for 8 inches, and the total planned production capacity is equivalent to about 4.62 million wafers per month for 8 inches. The potential expansion capacity is equivalent to 3 million wafers per month for 8 inches. moon. From the perspective of 2021, it is estimated that this year’s new production capacity will be equivalent to 8 inches 640,000 pieces per month. In the next few years, the expansion of fab production and the trend of advanced process upgrades will surely bring broad growth space for equipment manufacturers. Domestic replacement is the current Main considerations for domestic fabs.

According to the plan of “Made in China 2025”, in 2025, the core basic components and key basic materials of semiconductors should realize 70% independent guarantee. With the rapid growth of domestic wafer production capacity driving the demand for domestic equipment, CST’s ion implanter, as one of the core equipment for semiconductor manufacturing, is expected to benefit from the industry’s upward trend, and the market has great potential for development.

Overseas acquisition of CompartSystems company, active layout of equipment upstream industry chain

In 2020, Wanye Enterprise led a domestic and foreign consortium to acquire Compart Systems, the world’s leading supplier of core components and flow control solutions for semiconductor equipment. Through this acquisition, the company helped to increase the localization of core components and components in the field of integrated circuit equipment. It fills the gaps in the local supply chain and effectively solves the problem of long-term dependence on overseas supply chains for equipment parts.

In terms of global industry status, Compart Systems’ K1S and C-Seal parts and components are in the leading position in gas transmission systems, and they have the production patents for next-generation products iBlock and Ultra-Seal, leading the industry to the forefront of innovative technology development. This year, Compart Systems’ related products have entered the supply chain system of domestic integrated circuit equipment companies. At the same time, it signed a contract with Zhejiang Haining to start the Zhejiang Haining Compart Manufacturing Center project with a total investment of 3 billion yuan, accelerating the domestic substitution process of semiconductor core components, thereby achieving Innovative breakthroughs in the field of local high-end semiconductor equipment.

Employee Stock Ownership Plan is overweight, deep binding of core semiconductor personnel

In the process of steadily advancing products, Wanye Enterprise also attaches great importance to the company’s talent development.

Prior to this, Wanye Enterprise released the first phase of its employee stock ownership plan, which deeply bound the core talents of integrated circuits and the company’s common development. According to the announcement, the company plans to redistribute the 72,245,500 shares reserved in the first phase of the employee stock ownership plan to further motivate the company’s core semiconductor talents and stimulate the sustainable development of the team. It is worth noting that, in order to promote the construction of the core talent team, the company enhances flexibility through subsequent allocation to meet the development needs of talent introduction and internal promotion, and promote the company’s sustainable development.

Investment industry funds participate in the layout to support new breakthroughs in domestic semiconductors

In addition to investing in self-research and acquisitions, Wanye Enterprises has also invested in industry funds to further help local semiconductor breakthroughs.

In 2018, Wanye Enterprise has invested in the Shanghai Integrated Circuit Equipment and Materials Industry Investment Fund. The fund involves projects such as Singapore STI, Feikai Materials, Shanghai Jingce, Jiangsu Changjing, Huazhuo Jingke, Aojie Technology, Jiutian Vacuum, etc. A series of outstanding enterprises.

According to public information, Huazhuo Jingke, an investment project invested by the Shanghai Integrated Circuit Equipment and Materials Industry Investment Fund, was first approved in September this year and will soon be listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. This is the second company that has been harvested by the Semiconductor Equipment Materials Fund after the IPO of Aojie Technology, a leading company in integrated circuit design.

Looking forward to the future, Wanye will continue to adhere to the two-wheel drive of independent R&D and extensional mergers and acquisitions, firmly promote the company’s rapid transformation into the integrated circuit industry, continue to increase the overall business proportion of integrated circuits, and strengthen the company’s core competitiveness. As the urgency and necessity of independent and controllable semiconductor equipment are further highlighted, the domestic substitution process is speeding up in an all-round way. Wanye companies will actively participate in it to help the independent and controllable supply of domestic high-end semiconductor equipment and materials enter the accelerated upward channel and continue to promote China The integrated circuit industry is developing healthily and vigorously.

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Author: Yoyokuo