33 Billion Yuan! Beijing Builds A Large-Scale 12-Inch Wafer Factory!

According to Yandong Micro and BOE A announced on the evening of November 15, Yandong Micro and BOE plan to join other state-owned companies in Beijing to invest in the construction of Nortel's integrated 12-inch integrated circuit production line project.

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The total investment of the project is 33 billion yuan, and Yandong Micro will actually control Nortel Integrated Project Company. On November 15, Yandongwei's share price closed at 25.13 yuan, with a market value of 30.1 billion yuan. The total investment is 33 billion yuan

Yandong Micro announced on the evening of November 15 that it plans to increase its capital by 4 billion yuan to its wholly-owned subsidiary, Yandong Technology, and Yandong Micro holds 100% of the equity of Yandong Technology after the capital increase; Yandong Technology plans to increase its capital by 4.99 billion yuan to Beijing Electronic Control Integrated Circuit Manufacturing Co., Ltd. (hereinafter referred to as Nortel Integration) for the 12-inch integrated circuit production line project invested and constructed by Nortel Integration. BOE A also announced on the evening of November 15 that it plans to increase its capital by 2 billion yuan to Nortel Integration through its wholly-owned subsidiary, Tianjin BOE Venture Capital, for investment in the construction of Nortel Integrated 12-inch integrated circuit production line project.
The total investment of the project is 33 billion yuan, and the registered capital of the project company is 20 billion yuan. The difference between the total investment of the project and the capital is settled by the loan of the project company. The project will start in 2024, start moving in equipment in the fourth quarter of 2025, achieve mass production by the end of 2026, and full production in 2030.
In addition to Yandong Technology and Tianjin BOE Venture Capital, Nortel Integration's other investment shareholders are also relevant state-owned companies in Beijing.

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Yandong Micro said that the project is conducive to Yandong Micro to build a 28nm-55nm HV/MS/RF-CMOS, PD/FD-SOI and other characteristic process platforms based on domestic equipment, and build a 12-inch production line with a planned production capacity of 50,000 pieces/month to realize the evolution of technology from 65nm to 40nm/28nm.
At present, Yandong Micro has a 6-inch wafer production line, a 6-inch SiC wafer production line, an 8-inch wafer production line, and a 12-inch wafer production line (under construction).
Yandong Micro will actually control Nortel Integration According to Yandong Micro announcement, Yandong Technology intends to sign a concerted action agreement with Tianjin BOE Venture Capital, Yizhuang State Investment and Beijing State Management to actually control Nortel Integration.

In terms of corporate governance arrangements, the new board of directors of Nortel Integration will be composed of 11 directors, including 6 recommended candidates by Yandong Technology, 1 recommended candidate by Tianjin BOE, 1 recommended candidate by Yizhuang Guotou, 1 recommended candidate by Yizhuang Technology, 1 recommended candidate by Beijing State Management, and 1 recommended candidate by China Development Fund.
The chairman of the board of directors is recommended by Yandong Technology, elected by the board of directors, and serves as the legal representative of the company. The chairman of the board of supervisors is recommended by Yandong Technology and elected by the board of supervisors. The general manager and chief financial officer are nominated by Yandong Technology, and the board of directors decides to appoint or dismiss them.
Make up for the shortcomings of the manufacturing end of Beijing's chip industry chain The products of Nortel's integration project are oriented to display drivers, digital-analog hybrid, embedded MCUs and other fields, which are highly in line with the country's guidance and encouragement of the integrated circuit industry.

The project is based on the strategic positioning of Beijing Electronic Control with "core screen" as the core, and will give full play to the demand drive of the display industry and the supply guarantee role of the equipment industry, with BOE and other IC markets as the traction, based on the 8-inch/12-inch integrated circuit manufacturing capacity of Yandong Micro, supplemented by the equipment and process development capabilities of North Huachuang, to build a strong integrated circuit industry ecological chain.
It is worth noting that as one of the important carriers of the national integrated circuit development strategy, Beijing has an enterprise layout in the integrated circuit design industry, manufacturing industry, packaging and testing industry, equipment industry, materials industry and other links, and the industrial chain covers a comprehensive range, but it is relatively concentrated on the design end, and there are relatively few enterprises at the manufacturing end and the packaging and testing end. Therefore, investing in this project will help promote Beijing to vigorously develop characteristic processes, break through key technologies, and promote "making up for shortcomings" and "forging long boards" at the same time.