Gree's Silicon Carbide Chip Factory Begins Production

December 18, 2024 – Gree Electric Appliances has officially announced the completion and production commencement of its silicon carbide (SiC) chip factory, marking a significant milestone in its chip manufacturing ambitions. The announcement was made by Gree Chairwoman Dong Mingzhu during an episode of Zhen Zhi Zhuo Jian, where she declared, “Gree’s chips have succeeded.”

Factory Overview

The SiC chip factory represents a major investment of nearly 10 billion yuan, embodying Gree's comprehensive vertical integration in the semiconductor industry.

Key Details:

Construction Timeline:

Groundbreaking: December 2022

Steel structure installation: April 2023

Equipment installation: October 2023

Fully operational within 12 months.

Facilities:

600-acre site including:

Chip factory

Packaging and testing facility

Semiconductor testing center

Super energy station.

Technological Highlights:

Over 70% of the core manufacturing equipment is domestically sourced.

First in Asia and second globally to establish a fully automated third-generation semiconductor chip factory.

World’s first SiC factory to integrate a fully automated defect detection solution.

Strategic Importance

Silicon carbide chips are pivotal to the third-generation semiconductor industry, known for their superior efficiency in high-power and high-frequency applications. They are essential for sectors such as:

Electric vehicles (EVs)

Renewable energy systems

High-performance industrial equipment

This factory positions Gree as a major player in the SiC semiconductor market, furthering its goal of semiconductor self-sufficiency and technological leadership.

Gree's Semiconductor Journey

Over the past decade, Gree has steadily expanded its presence in the semiconductor industry:

• 2012: Launched China's first domestically produced IPM power module production line.
• 2018:
  • Founded Zhuhai Zero Boundary Integrated Circuit Co., Ltd.
  • Co-founded Hunan Guoxin Semiconductor Technology Co., Ltd. in partnership with Changan Automobile and six other companies.
• 2019: Invested 30 billion yuan to acquire a stake in Wingtech Technology, contributing to the purchase of Nexperia Semiconductor.
• 2020: Acquired equity in San’an Optoelectronics.
• 2022: Established Gree Electronic Components Co., Ltd.
• This factory completes a vertically integrated semiconductor ecosystem, encompassing chip design, manufacturing, packaging, and testing.

Industry Impact

The factory’s operational success cements Gree’s role as a leader in China’s semiconductor self-reliance strategy, addressing critical supply chain vulnerabilities while aligning with national initiatives to bolster the domestic semiconductor industry.

Advantages:

Technological Independence: High localization of manufacturing equipment mitigates reliance on foreign technologies.

Market Leadership: As the first fully automated SiC chip facility in Asia, Gree sets a benchmark for innovation and efficiency.

Growth Potential: Positions Gree to capitalize on booming markets for SiC semiconductors in EVs, renewable energy, and industrial applications.

Future Outlook

As Gree continues to scale its semiconductor operations, its SiC factory is expected to:

Enhance its competitive edge in power electronics and energy efficiency markets.

Drive broader adoption of SiC technology across industries.

Serve as a blueprint for future automated semiconductor manufacturing facilities.