Production expansion focuses on special processes such as Driver IC, CIS/ISP and Power Discrete
In terms of Driver IC, it mainly uses HV (High Voltage) special process. Various manufacturers have recently focused on the development of 40/28nm HV process. Currently, the leader in process technology in the market is UMC, followed by GlobalFoundries. However, SMIC's 28HV and Hefei Jinghe Integrated's 40HV will enter mass production in the fourth quarter of this year and the second half of next year, and the technological gap with other foundry manufacturers will gradually narrow, especially in competition with comparable process capabilities and production capacity. Companies such as Power Semiconductor Manufacturing Co., Ltd. (PSMC), or Vanguard and DBHitek, which currently do not have 12-inch factories, will be the first to bear the brunt in the short term; UMC and GlobalFoundries will also be affected in the medium and long term.
In terms of CIS/ISP, the 3D CIS structure includes the logic layer ISP and the CIS photosensitive layer. The mainstream process is roughly based on 45/40nm. The logic layer ISP process will continue to develop towards more advanced nodes; the CIS photosensitive layer and FSI/BSI CIS are based on 65nm. /55nm and above are the mainstream. Currently, the technology leaders are mainly TSMC, United Microelectronics, and Samsung, but SMIC and Hefei Jinghe Integration are closely following them. In addition to continuing to catch up with the process gap, production capacity has also benefited from Chinese smartphone brands OPPO and Vivo. , Xiaomi and other support, plus mainland CIS manufacturers OmniVision, Galaxycore and SmartSens responded to government policies and gradually moved orders back to mainland China for production support.
In terms of Power Discrete (power components), it mainly covers MOSFET and IGBT products. It is world-leading and HHGrace has been deeply involved in the Power Discrete process for a long time. The completeness of the process platform and vehicle regulation verification coverage is higher than other peers. Thanks to mainland China's electric vehicle subsidy policy and the laying of solar energy-related infrastructure, mainland wafer foundries have gained more entry opportunities, including mainstream foundries HHGrace, SMIC, Hefei Jinghe Integration, and CanSemi. Industry players, as well as local small Power Discrete IDMs and wafer fabs such as GTA and CRMicro, have joined the ranks of Power Discrete competition. If mainland production capacity is released in large quantities at the same time, it will intensify the pressure on global Power Discrete OEM competition.
Generally speaking, mainland China aims to increase the proportion of localized production by actively recruiting overseas and domestic IC design companies to put into production or develop new products. However, the result of substantial expansion of production may result in overcapacity of global mature processes and the consequent There will be a price war. TrendForce believes that mature process production capacity in mainland China is gradually opening up, and the localized production trend for Driver IC, CIS/ISP and Power discrete will become increasingly clear. Second- and third-tier foundry manufacturers with similar process platforms and production capacity may Facing the risk of customer loss and price pressure, technological progress and yield will be the decisive points for subsequent consolidation of production capacity.
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