300mm Wafer Manufacturing in China: Challenges and Opportunities - - PowerPoint PPT Presentation

Zing Semiconductor Corporation Confidential

300mm Wafer Manufacturing in China: Challenges and Opportunities

May 2017

Zing Semiconductor Corporation Confidential

Agenda

Advantages when working in China

• Market
• Policy

Challenges when working in China

• Partners
• Localization

A brief introduction to Zing Semiconductor Challenges for next-generation wafers

Zing Semiconductor Corporation Confidential

Advantages when working in China

• Market
• Policy

Challenges when working in China

• Partners
• Localization

A brief introduction to Zing Semiconductor Challenges for next-generation wafers

Zing Semiconductor Corporation Confidential

4

SOURCE:IBS

15.7% 15.0% 14.2% 42.5% 12.6% 15.3% 13.7% 14.5% 44.4% 12.1% 16.4% 12.3% 13.9% 46.7% 10.7% 15.6% 12.7% 20.7% 41.4% 9.6% 15.8% 10.5% 11.3% 51.9% 10.5% 15.6% 10.6% 11.3% 52.5% 10.0% 54.7% 9.3% 10.0% 15.3% 10.7% 56.2% 9.4% 15.0% 10.0% 9.4% 55.8% 9.2% 15.4% 9.8% 9.8% 57.5% 9.2% 14.9% 9.2% 9.2% 59.4% 8.0% 14.9% 8.6% 9.1%

Semiconductor Market Forecast through 2020

Zing Semiconductor Corporation Confidential

SOURCE:IBS

China Semiconductor Consumption vs. Supply from Domestic Suppliers

Zing Semiconductor Corporation Confidential

• 62 new fabs have been announced as starting operation between 2017 and

2020.

• 26 of the new fabs are located in China, or 42% of the total.

2017～2020 New Fab Construction

Zing Semiconductor Corporation Confidential

By product type, the forecast for new facilities and lines include: ① 20 foundries (32 percent), ② 13 memory fabs (21 percent), ③ Seven LED (11 percent), ④ Six Power (10 percent) ⑤ Five MEMS (8 percent).

New Facility: Types

Zing Semiconductor Corporation Confidential

Zing Semiconductor Corporation Confidential

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Chinese 300mm wafer capacity, 2017-2020

 Current 300mm demand is from 8 manufacturers, with a combined 460kwpm production. Including test and monitor wafers, total wafer demand is between 500-550Kwpm.

• 2017

 Many fabs are scheduled to come online by 2020, including expansion of existing fabs as well as new players in the industry, including fabs in Hefei, Jinjiang, and Xiamen, among others. Demand for production wafers is expected to increase by 640K wpm, and including test and monitor wafers, demand is expected to increase by over 700K.  By 2020 total wafer demand will be around 1.2M wpm.

• 2017-2020

Red text above denotes fabs under construction

Zing Semiconductor Corporation Confidential

Advantages: Policy

“Made in China 2025” Elements of Germany’s “Industry 4.0” policy Increased emphasis on supply chain efficiencies, supply chain communication, smart factories Collaboration with MNCs; move away from “indigenous innovation” for domestic market only

Zing Semiconductor Corporation Confidential

Made in China 2025

• Financial / Facility support from

central, provincial, and local governments

• Focus on high-tech jobs creation,

particularly in interior

• Value-added raw materials highly

desirable

Zing Semiconductor Corporation Confidential

Advantages when working in China

• Market
• Policy

Challenges when working in China

• Partners
• Localization

A brief introduction to Zing Semiconductor Challenges for next-generation wafers

Zing Semiconductor Corporation Confidential

Challenges: Finding the Right Partners

• Picking the right location
• Subcontractor quality
• When and what to outsource

Zing Semiconductor Corporation Confidential

• China GAAP vs. U.S. GAAP
• Quality bilingual employees
• Language of daily business?

Challenges: Localization

Zing Semiconductor Corporation Confidential

Advantages when working in China

• Market
• Policy

Challenges when working in China

• Partners
• Localization

A brief introduction to Zing Semiconductor Challenges for next-generation wafers

Zing Semiconductor Corporation Confidential

Zing Semiconductor is located in Lingang, a district of Shanghai, with a total area of 100,062㎡. The total built-up area will be 128394.90㎡. As of June 2018, investment will be $325M, with total investment estimated to be $1B at full capacity.

Zing Semiconductor

Zing Semiconductor Corporation Confidential

2017-2022 Roadmap

Phase 1 Technology Node： 28nm Capacity：150K 300mm wafers per month Phase 2 Technology Node： 20nm~14nm Capacity： 300K 300mm wafers per month Phase 3 Technology Node： 10nm and under Capacity: 600K 300mm wafers per month 2017-2018 2019-2020 2021-2022

Zing Semiconductor Corporation Confidential

To 150K wpm mass production

01 02 03 04 05

Construction 2015.10~2016.08 R&D Phase 2016.09~2016.12 Certification 2017.1~2017.9 Phase 1 End 2017.10~2018.6 *Complete Engineering Design *Receive Production and Business Licenses *Approval of construction permits *Apply for 20 core patents * R&D equipment tender * R&D equipment procurement * Complete factory construction * Complete R & D equipment installation * Complete product technology research and development * Start customer sample manufacturing * Capacity to 10k wafers per month * Pass 4 to 5 customers product certification * Passed ISO9001 certification * Production capacity

• f 80k/month

* Began wafer foundry services in January 2017 * Production capacity of 150k/month * 6 months of sales of 100K wpm, monthly sales of 70 million RMB * Complete 510 patent applications

02:Const struction 01:Planni nning ng 03: R&D &D P Phase se 04: Ce Certif ificatio ion 05: Pha hase 1 e 1 End End

Planning 2014.06~2015.09

Zing Semiconductor Corporation Confidential

Crystal Growing Performance

1.8M Single Crystal

Whole Single Crystal Shoulder 100mm Body 1800mm Tail 300mm

Pulling Speed Ingot Axial Length [mm] 70mm 1800mm

70mm ~ 1800mm: Target ±8% 200mm ~ 1800mm: Target ±4%

1.6M Single Crystal

Shoulder 100mm Body 1600mm Tail 300mm

Date : 2016.12.28 Date : 2017.01.16

Whole Single Crystal

Date : 2017.02.13

2.0M Single Crystal

Shoulder 100mm Body 2000mm Tail 300mm Whole Single Crystal

Zing Semiconductor Corporation Confidential

Crystal Growing Performance

Low COP Quality Summary

☞ Production Date of Test-3 Ingot : 2017.4.01

200nm 120nm 90nm 65nm 37nm 30 20 10

12.6957 2.26087 0.608696 0.521739 0.478261

Test-3 Test-2 Test-1 3000 2500 2000 1500 1000 500 2.26087 313.889 2707.58

90nm LPDN Trend LPDN Result of Test-3

BOTTOM MIDDLE TOP 40 30 20 10 13.375 12.7 11.6

37nm LPDN Result per Ingot Position

Zing Semiconductor Corporation Confidential

Zing Semiconductor Corporation Confidential

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Patent Applications

Zing Semiconductor has applied for 304 patents, for crystal growth, silicon wafer substrate technology, epitaxial material growth, silicon III-V semiconductor material epitaxial growth, SOI wafer substrate preparation and advanced CMOS devices and processes, amongst others. It has received 36 patents, with the remaining patent applications still pending.

Zing Semiconductor Corporation Confidential

Quality Certification Plans

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Certification\ Time

2015 2016 2017 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

ISO 9001:2015 ISO 14001:2004 OHSAS 18001:2007 ISO/TS16949:2009

2017/5 2017/9

Zing Semiconductor Corporation Confidential

Advantages when working in China

• Market
• Policy

Challenges when working in China

• Partners
• Localization

A brief introduction to Zing Semiconductor Challenges for next-generation wafers

Zing Semiconductor Corporation Confidential

Challenges for the industry at 14nm and beyond

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• Growing demand for COP-free, starting with

near-perfect crystal

• Smaller edge exclusions

Zing Semiconductor Corporation Confidential

Challenges for the industry at 14nm and beyond

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• Thick epi and FD-SOI

SOURCE: Applied Materials SOURCE: Soitec

Zing Semiconductor Corporation Confidential

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Zing Semiconductor – Your source for 300mm wafers in China Richard Chang

changrrg@zingsemi.com

www.zingsemi.com