Advancements continue in China’s semiconductor landscape with progress reported in five major semiconductor projects. Companies like BYD Semiconductor, Empyrean Technology, CGEE, Sinopack, and CETC (Shanxi) have witnessed recent developments across semiconductor materials, design, packaging and testing, and power semiconductors.

BYD Semiconductor: completed the first phase of power devices and sensor controller project

BYD Semiconductor has successfully completed the first phase of its Power Devices and Sensor Controller project, focusing on automotive-grade semiconductors. This project aims to establish a production line capable of producing 720,000 power device products and CNY 6 billion (about USD 847 million) sets of optical microelectronics products annually, contributing to an expected annual output value of CNY 15 billion (about USD 2.1 billion). The devices produced are critical components for new energy vehicles.

Empyrean Technology: 7 semiconductor-related projects signed to build in Xi’an

Empyrean Technology is an EDA and services provider, focusing on analog design and digital SoC solution.

Empyrean Technology’s Xi’an R&D base, along with six other projects, has been signed in Xi’an High-tech Zone. Empyrean Technology envisions its Xi’an R&D base as the largest center in northwest China. According to CCTV, these projects included fields such as integrated circuits and network security, providing essential technical support to address challenges arising from the U.S. bans.

CGEE: completed headquarters production and R&D center project

CGEE specialize in semiconductor-grade single crystal silicon furnaces (8-12 inches), 6-8 inch SiC, GaN, and associated crystal growth equipment and processes.

On November 28, CGEE highlighted the completion of the opening ceremony for its headquarters production and R&D center project. Focused on expanding production capacity, the company clarified that this project is an extension of its core business. It involves technical research, development, and upgrades in crystal growth equipment and processes, hastening the industrialization of research outcomes. This strategic move aims to assist the company in diversifying its product line to better align with customer demands.

In a recent interview, CGEE highlighted its proactive approach to enter the Taiwan market, engaging in close technical exchanges with customers. The company has not only secured bulk orders but also witnessed a continuous increase in order quantities. Furthermore, there is an active strategic deployment in overseas markets. CGEE emphasized the successful delivery and acceptance of its semiconductor-grade single crystal silicon furnaces and SiC single crystal furnaces in Taiwan.

Sinopack’s subsidiary Bowei: completed third-generation semiconductor power device industrialization project

Bowei focus on GaN communication base station RF device. The project’s annual capacity is planned to reach 6 million units.

On November 27, Sinopack announced that its subsidiary, Bowei, has successfully completed the expansion project for the third-generation semiconductor power device industrialization. The key products of this project include GaN communication base station RF chips and devices, with an annual production capacity planned at 6 million units.

Sinopack highlighted that Bowei primarily engages in integrated circuits design, packaging, testing, and sale of GaN communication RF integrated circuits products. This includes including GaN communication base station RF integrated circuits and devices, along with microwave communication RF integrated circuits and devices.

CETC (Shanxi): Completed Its third-generation semiconductor technology innovation center project

CETC(Shanxi) engage in the research, development, and industrialization of high-purity graphite and carbon-based material equipment.

The third-generation semiconductor technology innovation center of CETC (Shanxi) is situated in the Shanxi Transformation and Comprehensive Reform Demonstration Zone (Shanxi ZGQ). This center includes the trial verification line and supporting projects, along with the microelectronics smart manufacturing industry base project. The construction is planned in two phases. Upon completion of the first phase, it will possess the capacity to produce 600 units/sets of smart manufacturing equipment annually, along with 24,000 pieces/year of ceramic substrates and modular circuits. The facility will also establish a 6-inch wide bandgap semiconductor manufacturing equipment process verification platform and a common technology research and development platform.
(Image: BYD Semiconductor)

According to Chinatimes’ report, NVIDIA, the powerhouse in the AI domain, has recently announced recruitment initiatives in China, signaling an expansion of its autonomous driving team to propel the arrival of the AI-defined automotive era.

With a total of 25 positions across five departments, the focus is primarily on fields such as autonomous driving software, algorithms, and more, with job locations spanning Beijing, Shanghai, and Shenzhen.

The five departments open for recruitment at NVIDIA encompass the Autonomous Driving Software Group, Autonomous Driving Platform Group, System Integration and Testing Group, Map and Simulation Group, and the Product Group.

While each department has a varying number of open positions, the collective count reaches 25. Notably, within less than a day of posting the recruitment information on LinkedIn, NVIDIA has received over 100 resumes, indicating significant interest in the roles.

According to NVIDIA’s introduction, the mission of their autonomous driving team is to design, create, and deploy the safest and most advanced artificial intelligence-driven systems for automation and autonomous vehicles.

The scope of their work spans various modes of transportation, ranging from passenger cars to commercial vehicles and robot taxis. Safety is their top priority, whether it involves simultaneously training and testing AI in data centers or performing real-time data processing in vehicles.

NVIDIA asserts that as a leader in AI and accelerated computing, their autonomous driving solutions are global in scope. They aim to collaborate with automotive manufacturers to create value for users worldwide on the journey from L2 to L4 autonomy levels.

On the other hand, the team is led by Wu Xinzhou, who resigned from his position as Vice President of Autonomous Driving at XPeng Motors in August of this year.

Wu aspires for the Chinese autonomous driving team to become a core force propelling NVIDIA’s autonomous driving products to commercialization. He envisions leveraging China’s talent pool and experience to collaboratively create globally competitive autonomous driving products.

Wu also outlined specific requirements for prospective candidates, emphasizing the need for a solid professional background, strong self-motivation, a relentless pursuit of excellence in technology and product development, alignment with NVIDIA’s diverse work environment, and excellent communication skills to engage effectively with colleagues from different backgrounds.

(Photo credit: Nvidia)

With China intensifying export controls, Japanese companies relying on crucial battery and semiconductor materials manufactured in China are contemplating alternative solutions. They are actively seeking materials sources to achieve supply diversification.

TrendForce’s insight:

1. Alternative Solution Cannot be Translated into Immediate Success

While countries like Japan and South Korea have swiftly initiated strategies to find alternative solutions, the majority are still in the evaluation, research, or testing stages, unable to provide immediate assistance.

Even if alternative graphite production sources outside of China, such as in North America or Australia, are identified, it is likely to increase manufacturing costs, thereby impacting the selling price or profit performance of electric vehicles.

2. Back to Negotiation with Chinese Manufacturers

The post-export control scenario may accentuate the cost advantage of Chinese battery manufacturers, influencing the effectiveness of various protective measures taken by Europe and the United States to counter Chinese electric vehicles.

Consequently, countries may ultimately realize that returning to the negotiation table with China is more practical than going through a prolonged process, aligning with China’s primary objective.

3. Material Edge Won’t Last Forever

The continuous export restrictions on critical materials by China may encourage countries to persist in developing alternative solutions. For instance, OEMs like Tesla, GM, and Stellantis are actively investing in research on rare-earth-free motors to reduce dependency on Chinese rare earths.

While currently constrained by battery material technology, graphite remains the highest-value anode material. Yet, numerous companies are also exploring anodes with higher energy density, such as silicon oxide (SiO) and lithium metal (Li Metal).

Therefore, China must recognize that material advantages may not be permanent, and the core lies in the ability for technological iteration.

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• [News] Japanese Companies Seek Battery and Chip Materials Outside China

(Photo credit: Pixabay)

According to IJWEI’s report, Japanese companies heavily reliant on key battery and semiconductor materials manufactured in China are expanding their sources as China intensifies export controls.

On October 20th, China announced that certain graphite items, including high-purity, high-strength, and high-density synthetic graphite materials and their products, cannot be exported without permission.

This regulation officially takes effect on December 1st of this year. Graphite is crucial for manufacturing the negative electrode of lithium-ion batteries for electric vehicles. While the permit requirements do not constitute a ban, they may lead to a reduction in China’s graphite exports.

Over 80% of the natural graphite used in Japan comes from China. In case of a disruption in graphite imports, Mitsubishi Chemical Group in Japan is considering strengthening its production of electrode materials in Shandong. The company is also exploring partnerships in Australia and production in Mozambique and Norway to diversify the supply.

Representatives from Nissan Motor Company have stated that they will consider sourcing graphite and other key electric vehicle materials from alternative regions.

Panasonic’s battery subsidiary, Panasonic Energy, is collaborating with a Canadian graphite company on research for large-scale production of electrode materials. In September of this year, the Japanese Ministry of Economy, Trade, and Industry (METI) and the Canadian government signed an agreement to strengthen the battery supply chain.

According to data from the United States Geological Survey, the global graphite production reached 1.3 million tons in 2022, experiencing a 15% year-on-year growth due to the popularity of electric vehicles. China contributes to 70% of the graphite production and is a major producer of synthetic graphite. China serves as the primary low-cost exporter for both types of materials.

“The costs of procuring graphite will inevitably rise, the focus will be on how companies maintain their competitive advantage while bearing the costs.” as stated by Noboru Sato, visiting professor at Nagoya University.

Graphite is not the sole crucial mineral for China. In August of this year, China intensified export restrictions on gallium and germanium, vital rare metals used in the manufacturing of electronic components and semiconductors. Customs data indicates a significant decrease in the export of these two metals.

Japanese manufacturers are also exploring materials sources unaffected by China’s export controls. Kanto Denka Kogyo, a chemical producer, is testing lithium compounds from regions like South America to manufacture battery electrolytes. The company is also collaborating with Sumitomo Metal Mining to test technology for lithium recovery from discarded electric vehicle batteries.

At the same time, Japan is using diplomacy and foreign aid to ensure a stable supply of critical materials. Both China and Japan have confirmed the establishment of new bilateral export control dialogues. Senior trade officials from both sides will engage in regular consultations on export restriction issues.

The Japanese Ministry of Economy, Trade, and Industry is seeking JPY 260 billion (approximately USD 1.74 billion) in the supplementary budget proposal for this fiscal year to support Japan’s battery manufacturing. Some of the funds may be allocated for investing in companies producing synthetic graphite in Japan.

Last year, Japan’s additional budget provided approximately JPY 200 billion to support the extraction, refining, and processing of critical minerals. Companies investing overseas in the production of rare metals will receive subsidies of up to half.

Companies outside Japan are also taking action to mitigate the impact of Chinese supply restrictions. According to Business Korea’s report, South Korea’s company Posco Future M, which produces battery materials, has preemptively planned to manufacture synthetic graphite using coal tar, a byproduct that can be sourced domestically in Korea.

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• [News] China Implements Export Restrictions on Graphite, Impacting Battery and Electric Vehicle Industries
• [News] China’s Export Control Measures and Their Impact on Electric Vehicle Battery Production

(Photo credit: Pixabay)

On November 28, CXMT revealed its latest DRAM product, LPDDR5. As the first Chinese brand to independently develop and manufacture LPDDR5 products, CXMT marks a breakthrough in the Chinese market and broadens its product reach in the mobile terminal market, reported by MooreNews.

CXMT’s LPDDR5, the fifth generation of low-power double data rate synchronous dynamic random access memory, boasts a 50% increase in single-die density and speed compared to LPDDR4X, respectively reaching 12Gb and 6400Mbps. Notably, power consumption is reduced by 30%. Featuring robust RAS features, including on-die error correction code (ECC) for real-time error correction, LPDDR5 enable data security and system stability. The 12GB LPDDR5 chip from CXMT is the first product adopting Package on Package (PoP) stacking for the company.

The launch of LPDDR5 by CXMT enhances the quality and reduces costs for personal and business applications, further expanding its footprint in the mobile market. As the first company in launching independently developed and manufactured LPDDR5 products in China, CXMT accelerates the industrialization of the DRAM industry, spearheading the Chinese DRAM industry into the LPDDR5 era.

LPDDR5 chips bring faster speeds and lower power consumption to mobile electronic devices, significantly improving overall product performance. According to CXMT’s website, LPDDR5 products have already received validation from major Chinese smartphone brands such as Xiaomi and Transsion, with plans to expedite overall market commercialization.

In its product lineup, CXMT specializes in DRAM design, with DDR4, LPDDR4X, and DDR4 modules catering to diverse storage needs in terms of performance, capacity, and usage. Collaborating through joint research and development with leading customer companies, CXMT delivers highly customized integrated solutions, effectively meeting the varied demands of the market. The introduction of LPDDR5 further solidifies CXMT’s position in the mobile market.
(Image: CXMT)