Tongfu Microelectronics: fixed increase of 5.5 billion, invested in five major packaging and testing projects
Recently, Tongfu Microelectronics, a leading domestic packaging and testing company, issued an announcement that the total amount of funds to be raised through non-public offerings will not exceed RMB 5.5 billion (including RMB 5.5 billion).
Tongfu Microelectronics pointed out that before the funds raised from this non-public offering are in place, the company will first invest with self-raised funds according to the needs of the project, and replace them after the raised funds are in place. On the premise of not changing the projects funded by this fundraising, the company can make appropriate adjustments to the order and amount of raised funds invested in the above-mentioned projects according to the actual needs of the projects. After the raised funds are in place, if the actual net amount of raised funds after deducting the issuance expenses is lower than the amount to be invested in the raised funds, the company will solve the problem through self-raised funds.
According to Tongfu Microelectronics, the reason why the company has this fixed increase demand is mainly when it sees the development needs of the market.
Tongfu Microelectronics said that as a leading enterprise in the domestic integrated circuit packaging and testing industry, the company’s operating income has continued to grow in recent years, and its market share has continued to increase. According to the statistics of the Core Thought Research Institute, the company’s global market share in 2020 will reach 5.05%, making it the fifth largest packaging and testing company in the world. Through the acquisition of Tongfu Chaowei Suzhou and Tongfu Chaowei Penang, the company and AMD formed a strong alliance model of “joint venture + cooperation”, established a strategic partnership with AMD, and further enhanced the company’s advantages in customer groups . At the same time, at the technical level, it breaks the monopoly and fills the gap in my country’s large-scale mass production in the field of FCBGA packaging and testing.
The financial report shows that Tongfu Microelectronics’ operating income in 2020 was 10.769 billion yuan, an increase of 30.27% over 2019; its net profit was 389 million yuan, an increase of 937.62% over 2019. From January to June 2021, the company’s operating income was 7.089 billion yuan, a year-on-year increase of 51.82%; net profit was 412 million yuan, a year-on-year increase of 219.13%. The company’s revenue scale and profitability continued to improve.
The funds raised in this non-public offering will be mainly used for the “memory chip packaging and testing production line construction project”, “high-performance computing product packaging and testing industrialization project”, “5G and other new-generation communication product packaging and testing projects”, “round Chip-level packaging product expansion project” and “power device packaging and testing expansion project” to further enhance the company’s production capacity and production level of high-end integrated circuit packaging and testing technology.
According to the announcement, since the second half of 2020, the global semiconductor industry has gradually resumed its growth trend. With the increase in market demand for integrated circuits, the overall capacity of the packaging and testing industry has been in short supply. With the continuous increase in the number of orders, the company’s capacity utilization rate has reached a relatively high level. Therefore, the company has increased investment and capacity expansion according to market demand. The construction of “high-performance central processing unit and other integrated circuit packaging and testing projects” to meet the growing needs of customers.
On the other hand, the company’s current asset-liability ratio is higher than the average level of companies in the same industry, and the financial costs are relatively high. Part of the funds raised in this non-public offering will be used to repay bank loans and supplement working capital to optimize the company’s capital. structure, reduce financial costs, and support the rapid, healthy and sustainable development of the company’s main business.
In the view of Tongfu Microelectronics, the huge domestic substitution space, high potential for domestic demand growth, good economic effects and high-quality customer resources are the driving forces for the company’s fixed increase.
According to reports, in the long-term business development process, Tongfu Microelectronics has accumulated rich customer resources with advanced technology and technology, good product quality and high-quality customer service. The company’s current main customers are AMD, MediaTek, STMicroelectronics, Infineon, Realtek, Awinic Electronics, Goodix Technology, Zhuoshengwei, Weir shares, etc. More than 50% of the world’s top 20 semiconductor companies and the vast majority of domestic well-known integrated circuit design companies have become corporate customers. Although it is a relatively long process for packaging and testing manufacturers to develop customers, once the certification is completed and mass production starts, the customer stickiness is strong, and the packaging and testing suppliers are rarely changed.
At present, the company continues to actively deploy the industrial ecological chain in the fields of advanced products such as high-performance computing, 5G communication products, memory and Display drivers, and strengthens in-depth cooperation with leading customers in various segments at home and abroad. In the high-speed growth fields such as SOC, MCU, power management, power devices, and antenna communication products, the company will continue to give full play to the company’s existing advantages and expand in-depth cooperation with key strategic customers at home and abroad. At the same time, in terms of domestic FCBGA products, the market expansion has achieved remarkable results. Rich and high-quality customer resources have laid a solid market foundation for the implementation of this fundraising project.
Of course, a solid technical foundation is the guarantee that Tongfu Microelectronics can become bigger and stronger.
At present, Tongfu Microelectronics has mastered a series of high-end integrated circuit packaging and testing technologies. The company’s products such as WLCSP, FC series, SiP series, high-reliability automotive Electronic packaging technology, BGA substrate design and packaging technology, and power devices have all achieved industrialization; Through mergers and acquisitions, the company has acquired high-end packaging technologies such as FCBGA, FCPGA, and FCLGA and a large-scale mass production platform, and can provide world-leading packaging and testing services for high-end customers at home and abroad.
At present, the company’s packaging and testing technology level and technology research and development strength are in a leading position in the domestic industry. The company has established high-level innovation platforms such as a nationally recognized enterprise technology center, a national post-doctoral research station, a Jiangsu enterprise academician workstation, a provincial key laboratory for advanced packaging and testing of integrated circuits, a provincial technology center and an engineering technology research center. It has established close cooperative relations with well-known scientific research institutes and universities such as the Institute of Microelectronics of the Chinese Academy of Sciences, the Institute of Microsystems of the Chinese Academy of Sciences, Tsinghua University, Peking University, Huazhong University of Science and Technology, and hired a number of experts to participate in new products and new technologies. development work.
As of June 30, 2021, the company’s cumulative patent applications exceeded 1,100, of which invention applications accounted for 72%, and patent authorization exceeded 500; it has won the China Patent Award Excellence Award for three consecutive years.
After years of continuous research and development and technology precipitation, the company has formed a profound accumulation of packaging and testing technology, which has provided strong technical support for the smooth implementation of this fundraising project.
The investment status of specific projects is as follows:
First look at the memory chip packaging and testing production line construction project, the main body of which is Hefei Tongfu Microelectronics Co., Ltd. According to their plan, after the completion of the project, the annual production capacity of memory chip packaging and testing will increase by 144 million, including 108 million wBGA (DDR) and 36 million BGA (LPDDR). The construction period of the project is 2 years. After the project is put into production, it is estimated that the annual sales income will increase by RMB 504,000,000, and the annual after-tax profit will be increased by RMB 58,211,500.
Secondly, look at the high-performance computing product packaging and testing industrialization project, the main body of which is Nantong Tongfu Microelectronics Co., Ltd. After the completion of the project, the annual production capacity of 321.6 million pieces of packaging and testing high-performance products will be added, including 300 million pieces of FCCSP series and 21.6 million pieces of FCBGA series.
As can be seen from the announcement, FCCSP technology is mainly used in the packaging of SOC main chips and peripheral chips in mobile phones, tablets and various mobile terminals. FCBGA packaged integrated circuit products are mainly used in CPU, GPU, cloud computing and other fields. According to the plan, the construction period of this project is 2 years. After the project is put into production, it is estimated that the new annual sales income will be RMB 1,153,200,000, and the annual after-tax profit will be increased by RMB 111,664,800.
As for the packaging and testing projects of new-generation communication products such as 5G, it is a plan implemented by Yitongfu Microelectronics Co., Ltd. After the completion of the project, the annual production capacity of 5G and other new-generation communication products will increase by 2.412 billion pieces, including 1.29 billion pieces of FCLGA series, 642 million pieces of QFN series, and 480 million pieces of QFP series. It can provide strong support for the packaging of 5G smartphone chips and Bluetooth, WiFi, and RF chips. According to the forecast, the construction period of the project is 2 years. After the project is put into production, it is estimated that the new annual sales income will be RMB 822,000,000, and the annual after-tax profit will be increased by RMB 96,287,200.
The expansion project of wafer-level packaging products is also based on Tongfu Microelectronics Co., Ltd. The planning goal is to increase the annual production capacity of integrated circuit packaging by 780,000 pieces.
According to reports, with the rapid rise of application scenarios such as 5G communication, Internet of Things, artificial intelligence, and autonomous driving, the downstream market has an increasing demand for diversified chip functions. With the slowdown of Moore’s Law, the improvement of semiconductor performance is more and more dependent on the advancement of packaging technology, which puts forward higher requirements for packaging technology. Advanced packaging technology can improve product integration and functional diversification through wafer-level packaging and system-level packaging without relying solely on chip process technology to achieve breakthroughs, and meet the needs of terminal applications for thin, low-power, high-performance chips. demand, while significantly reducing chip costs.
There are two main technical paths for advanced packaging technology: one is to reduce the package volume to make it close to the size of the chip itself, which is collectively referred to as wafer-level chip packaging (WLCSP), and the other packaging technology is to combine multiple The bare chips are packaged together to improve the integration of the entire module. This technology path is called system-in-package (SiP).
Wafer-level packaging is a low-cost packaging technology with smaller dimensions. Wafer-level packaging directly takes the wafer as the processing object, packaging and testing many chips on the wafer at the same time, and finally cutting it into a single device. Wafer-level packaging technology completes rewiring on the wafer through wafer reconstruction technology and forms metal bumps interconnected with the outside through wafer bumping process, which can accommodate more pins in a smaller package area, Reduce the size of packaged products. At the same time, wafer-level packaging enables greater bandwidth, higher speed and reliability, and lower power consumption, and is a powerful tool for many applications in mobile consumer electronics, high-end supercomputing, gaming, artificial intelligence, and IoT devices. Chip packages offer a wider range of form factors.
Wafer-level packaging technology has been widely used in mobile and consumer electronics, Internet of Things, wearable devices, automotive and other fields. Today, wafer-level packaging has become the mainstay of flash memory, EEPROM, high-speed DRAM, SRAM, LCD drivers, RF devices, logic devices, power/battery management devices, and analog devices (voltage regulators, temperature sensors, controllers, operational amplifiers, Advanced packaging solutions commonly used in high-end electronic products such as power amplifiers) have broad market prospects.
After the project is completed, it is estimated that the annual sales income will increase by 780,140,000 yuan and the annual after-tax profit will be 123,239,900 yuan.
The power device packaging and testing expansion project is also another project with Tongfu Microelectronics Co., Ltd. as the main body of implementation. According to the planning of the Bureau, after the completion of the project, the annual production capacity of power device packaging and testing will increase by 1,449.6 million pieces, including 1,242 million pieces of PDFN series and 207,600,000 pieces of TO series.
The construction period of the project is 2 years. After the project is put into production, it is estimated that the annual sales income will increase by RMB 499.600 million, and the annual after-tax profit will be increased by RMB 55.1520 million.