Silicon wafers are the most expensive material in IC manufacturing, accounting for 37% of the total cost of wafer manufacturing. In recent years, under the accelerated pace of localization substitution, the Shanghai silicon industry, a major manufacturer representing the localization of China's silicon materials, has achieved rapid growth in revenue. According to Qiu Ciyun, president of Shanghai Silicon Industry Group, in 2019, the annual revenue of Shanghai Silicon was 1.46 billion, and in 2022, it reached 3.6 billion, becoming the fastest growing enterprise in the industry, and Shanghai Silicon Industry has also become the world's sixth largest silicon supplier.
In terms of specific production capacity, President Qiu Ciyun revealed that Xinsheng Technology, a subsidiary of Shanghai Silicon Industry Group, achieved a monthly production capacity of 300,000 wafers at the end of last year in terms of 12-inch wafers. At present, Xinsheng Technology is building a production capacity of 600,000 pieces. It is expected that by the end of 2023, the monthly production capacity will reach 450,000 pieces, and by the end of 2024, it will reach a monthly production capacity of 600,000 pieces. The long-term goal in the future is to strive for a monthly production capacity of 1.2 million pieces. As production capacity continues to grow, Sunborn's technology can also meet the wafer needs of major domestic IC manufacturers. In addition to logic chips and memory chips, Sunsun also supplies CIS silicon wafers in large quantities.
In addition, with the accelerated development of the domestic new energy industry, especially electric vehicles, as well as photovoltaic and solar energy industries, the demand for domestic IGBT has soared. Shanghai silicon industry has also entered the field of epitaxial wafers of IGBTs, and has unique technology to realize the "high resistance and low oxygen" of materials. The most representative is that in 2022, Xinao Technology, a subsidiary of Shanghai Silicon, will supply more than 50% of the epitaxial materials for the IGBT of BYD, a leading domestic electric vehicle company, which can support BYD's production of 1 million electric vehicles.
In addition to the two domestic companies of Sunsun and Xinao, Shanghai Silicon Industry Group also has a subsidiary OKMETIC in Finland. President Qiu Ciyun said that the company mainly produces 8-inch and 6-inch silicon wafers, as well as some special silicon wafers, which are very resistant. In addition, the company also has the best technology in thick film SOI, and has strong competitiveness in the international market.
Regarding the future development of the Shanghai silicon industry, President Qiu Ciyun said: "The Shanghai silicon industry has been committed to serving domestic IC factories, in addition to continuing to promote the production capacity of silicon wafers, it will also strengthen the key investment in electronic materials to solve the neck problem of national integrated circuit industry materials. At the same time, the Shanghai silicon industry will continue to maintain internationalization, cooperate and grow together with global semiconductors. "