HuaHong and ACM Shanghai Report Breakthroughs in Semiconductor Industry
The semiconductor industry has received promising news as HuaHong Group and ACM Research Shanghai both announced significant achievements. HuaHong has successfully launched production at its new 12-inch fab in Wuxi, while ACM Shanghai has made strides with its advanced semiconductor equipment validations.
The semiconductor industry has received promising news as HuaHong Group and ACM Research Shanghai both announced significant achievements. HuaHong has successfully launched production at its new 12-inch fab in Wuxi, while ACM Shanghai has made strides with its advanced semiconductor equipment validations.
HuaHong Wuxi 12-Inch Fab Officially Commences Production
On December 10, HuaHong Group revealed that its Wuxi Integrated Circuit Research and Manufacturing Base Phase II—featuring a 12-inch production line—has commenced production. This milestone transitions the project from construction to operational status.
Since its inception in March 2018, the Wuxi base has undergone two construction phases and expansions, accumulating an investment exceeding $10 billion. The Phase II project, also known as HuaHong Fab 9, focuses on 65/55-40nm specialty processes with a monthly capacity of 83,000 wafers. Upon reaching full production, the total capacity of HuaHong Wuxi's integrated circuit base will rise to 180,000 wafers per month.
Phase II prioritizes automotive-grade chips and specialty technologies for non-volatile memory, power management, and power devices. These advancements target applications in electric vehicles, IoT, renewable energy, and smart devices.
HuaHong is recognized as a leader in China's semiconductor manufacturing, operating three 8-inch and three 12-inch fabs across Shanghai and Wuxi. According to TrendForce, HuaHong ranks as the sixth-largest global foundry, holding a 2.2% market share in Q3 2024, following closely behind SMIC, which leads in China with a 6.0% market share, placing third globally.
Additionally, both HuaHong Group and SMIC have gained investor confidence. HuaHong recently raised its registered capital from 132.7 billion RMB to 134.5 billion RMB, while SMIC Holdings increased its capital from $2.45 billion to $4.45 billion—an 82% surge.
ACM Shanghai Advances Equipment Validations
On December 11, ACM Research Shanghai announced the successful initial validations of two critical pieces of semiconductor equipment.
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Ultra Fn A Plasma-Enhanced Atomic Layer Deposition (PEALD):
This system has passed early-stage validation with a Chinese semiconductor client and is now being optimized for mass production. -
Ultra Fn A Thermal Atomic Layer Deposition (Thermal ALD):
Successfully validated with another major Chinese client, this tool meets international benchmarks in performance and reliability.
ACM’s Ultra Fn A ALD vertical furnace systems offer both thermal and plasma-enhanced deposition configurations. They support a variety of applications, such as hard mask layers, barrier layers, spacer layers, sidewall protection, and dielectric fills, with the capacity to process 100 wafers per batch. Each system includes integrated features like real-time dry cleaning and atmospheric control, adhering to SEMI standards.
ACM Shanghai's product portfolio spans seven key categories, covering cleaning equipment, plating equipment, advanced packaging tools, vertical furnaces, coating/developing equipment, PECVD systems, and panel-level packaging solutions, addressing an estimated $20 billion market.
Rising Domestic Semiconductor Equipment Market
The momentum in China's semiconductor equipment market continues to accelerate. Notable developments in 2024 include:
- ACM Shanghai’s 4.5 billion RMB capital raise and innovative cleaning solutions integrating batch and single-wafer cleaning capabilities.
- Xinhuilian’s D2W and W2W hybrid bonding equipment, breaking international monopolies.
- Jingcheng Technology’s breakthroughs in 8-12 inch silicon wafer manufacturing equipment.
According to SEMI, China's semiconductor equipment shipments are projected to hit a record $49 billion in 2024, solidifying its position as a global leader.
Conclusion
The semiconductor industry faces challenges such as capacity constraints, geopolitical tensions, and technological barriers. However, China's advancements in manufacturing, design, and equipment demonstrate its determination to close the gap with international competitors. With firms like HuaHong and ACM Shanghai driving innovation, the country is steadily strengthening its position in the global semiconductor landscape.
