On December 6, during an interview and research activity organized by the China Economic Media Association, Lin Zhidong was interviewed by media reporters including reporters from the "Daily Economic News". Lin Zhidong said that Sanan Optoelectronics is accelerating the development of the third-generation compound semiconductor industry. "This year, our average utilization rate of gallium arsenide RF (note: an indicator of mass equipment usage efficiency) reached a new high, reaching 95% at the peak. The company has completed the expansion of monthly production capacity of 20,000 pieces."
Lin Zhidong said that in the field of silicon carbide chips, Sanan Optoelectronics has invested in the construction of factories in Hunan and Chongqing respectively. Among them, the first domestic 8-inch silicon carbide chip production line in the central and western regions jointly built in Chongqing and STMicroelectronics (China) Investment Co., Ltd. (hereinafter referred to as STMicroelectronics) has been lit up and is expected to be put into operation next year (Note: refers to the project being completed and put into use) and entering mass production.
Starting from 2017, Sanan OpticalThe company's LED (light-emitting diode) chip production capacity has ranked first in the world for many consecutive years and is the well-deserved industry leader in LED chips.
Lin Zhidong said that at present, Sanan Optoelectronics is the largest optical chip manufacturing and service platform in China with the most complete products. It is the only domestic manufacturing platform with large-scale mass production of gallium nitride/gallium arsenide RF chips. It is the first domestic SAW (surface acoustic wave filter) filter vertical industry chain integrated manufacturing platform, and the world's third and China's first third-generation silicon carbide 6-inch and 8-inch vertical industry chain integrated manufacturing platform for power chips.
The above-mentioned integrated circuit chip field is the "second growth curve" drawn by Sanan Optoelectronics based on its LED chip business foundation.
Lin Zhidong, Director and Deputy General Manager of Sanan Optoelectronics Picture source: Photo provided by the interviewee
Reject "involution"
"On the one hand, all types of compound semiconductor businesses have similarities in materials and manufacturing links. On the other hand, this also benefits from Sanan Optoelectronics' advance layout and investment in the integrated circuit industry." Lin Zhidong said, "The integrated circuits developed by the company in recent years have experienced technology incubation and customer accumulation, and have gradually evolved through exploration. In 2014, the company established its subsidiary Xiamen Sanan Integrated Circuit Co., Ltd. (hereinafter referred to as Sanan Integrated) to incubate its three major product lines: radio frequency, power electronics, and optical technology. The product lines share the Xiamen factory and clean room, actively carry out technology research and development, and gradually begin mass production to expand scale.”
Lin Zhidong said that Sanan Optoelectronics refuses to be "involved" and is willing to focus its energy and investment on R&D and internal skills. Sanan Integration, a subsidiary of Sanan Optoelectronics, won the first prize of the National Science and Technology Progress Award this year. This is the second time in a row that Sanan Optoelectronics has won the first prize of the National Science and Technology Progress Award, which fully illustrates the innovative spirit of Sanan people who value R&D and dare to invest.
Picture source: screenshot of the official website of the Ministry of Science and Technology
Regarding the field of radio frequency chips, Lin Zhidong said that Sanan Optoelectronics' goal in this business field is to "become a world-class radio frequency front-end chip R&D, manufacturing and service platform."
Currently, the RF front-end chip market is still dominated by major international manufacturers. However, in recent years, as domestic mobile phones have opened up in markets such as Southeast Asia and Africa, domestic design companies have also emerged in high-end and flagship models. With the further deepening of 5G commercial use, domestic companies have also gained a deeper understanding of standards and product definitions.
"We believe that the opportunities for the domestic RF front-end supply chain are very large, which is also the confidence we have in promoting a monthly production capacity of 20,000 pieces this year." Lin Zhidong analyzed.
"Our in-house epitaxy ratio has reached a new high this year, and we are extending our gallium arsenide substrate manufacturing capabilities."Lin Zhidong said, "In the strategic business field, Sanan Optoelectronics has always adhered to long-termism and continuously improved its industrial chain integration capabilities, becoming one of the few manufacturing platforms in the world that can simultaneously provide PA (power amplifier) OEM, filter products, and module packaging OEM."
"We started with gallium arsenide PA, and then we laid out filter products that are increasingly used in 5G modules, using a unique bonding substrate technology route and our own chip design to challenge international high-end products; finally, we added the last link of packaging and developed advanced packaging processes, including SIP (system-in-package) and WLP (wafer-level packaging filters), to keep up with the most cutting-edge 5G modularization requirements."
Lin Zhidong further stated that PA and filter chips alone account for more than 50% of the RF front-end chip market. With the penetration of 5G, the price and volume of these two chips will further increase.
Plans for small-scale mass production of 8-inch silicon carbide next year
Last year, threeAn Optoelectronics and STMicroelectronics jointly established An STMicroelectronics Co., Ltd. in Chongqing, mainly engaged in the production and sales of silicon carbide epitaxy and chips. Sanan Optoelectronics holds 51% of the equity of the joint venture.
Sanan Optoelectronics stated that in this field, Sanan Optoelectronics continues to adhere to the concept of "high barriers and wide moats". After the initial results of technology incubation and the initial emergence of market demand, Sanan Optoelectronics launched silicon carbide and gallium nitride production lines in Changsha, Hunan in 2020. Subsequently, it launched joint venture projects with upstream and downstream customers in the industry chain, such as Li Auto and STMicroelectronics, in Suzhou and Chongqing respectively, gradually expanding its business volume and forming its existing power electronics business layout.
Regarding the technical difficulty of silicon carbide, Lin Zhidong said frankly: "The greatest potential of silicon carbide is in new energy vehicles. Charging, voltage secondary conversion, etc. require chips with high reliability. This type of chip is equivalent to the gearbox of a traditional car in a new energy vehicle, so the reliability requirements are very high. Sanan and Li Automobile Since the joint venture, the two parties have done a lot of reliability experiments and tests, just like Tesla and STMicroelectronics did a lot of research and development. This kind of technology accumulation and requirements for basic functions are very high. After several years of R&D experiments and R&D investment, the company’s silicon carbide business has gradually begun to increase its volume.”
Regarding the progress of the silicon carbide project in Chongqing, Lin Zhidong revealed: "We are now bringing the equipment in and then doing process verification, because it is the first complete 8-inch silicon carbide production line in the central and western regions of China. From installation to testing to large-scale mass production, we plan to open the line next year and start small-scale mass production."
Only with core technology can we break through the prisoner's dilemma
"Why is it so 'volatile'? It's because of homogeneity. Without differentiation, you can only rely on price. If you rely on price, you will fall into a prisoner's dilemma. So the only solution (path) must be to rely on core technology." Lin Zhidong said that Sanan Optoelectronics' R&D investment in core technology and high standards for R&D efficiency will always be adhered to.
"The company has been deeply engaged in the research and development and large-scale manufacturing of compound semiconductor chips for more than 20 years. We have been closely following the national information and communication industry development plan, working closely with universities to solve the 'stuck neck' problem, targeting the market's cutting-edge technology, and dare to insist on pressured R&D investment." Lin Zhidong said.
When talking about investment in the future, Lin Zhidong said that Sanan Optoelectronics should start from two aspects. First, it should pay attention to key customer needs and technological development trends, dare to lay out forward-looking research and development, explore and develop new materials and new processes; second, promote the deep integration of digitalization, intelligent technology and the chip manufacturing industry, and continue to improve quality and efficiency.
In the field of silicon carbide, Lin Zhidong pointed out that Sanan Optoelectronics has one of the few vertically integrated manufacturing service platforms in the entire silicon carbide industry chain in China, which can provide full-process services of crystal growth, substrate preparation, epitaxial growth, chip manufacturing, packaging and testing, and achieve all-round control of product iteration, quality, and delivery. Its production capacity scale and technical level are competitive in the same industry around the world, which can effectively guarantee supply and meet market demand.
Looking forward to the development trend of LED chips, Lin Zhidong believes that "by increasing the proportion of high-end LED businesses such as Mini/Micro LED (small/micro light-emitting diodes), plant lighting, vehicle lighting, lasers, etc., the leading position in the industry can be further consolidated. However, one of the drawbacks of Mini/Micro LED is that the cost is too high, and its yield rate and technology still need breakthroughs., we need to improve yield, increase scale production, and then reduce costs to expand market applications."
In addition, Lin Zhidong also said that Sanan Optoelectronics attaches great importance to the cultivation and introduction of talents, and allocates relevant technical resources globally. “We continue to strengthen the cultivation and development of local technical teams and core technical backbones, and are also willing to cooperate with top talent teams around the world. For example, we have a mobile phone filter R&D team in Japan, and we have also established silicon carbide-related R&D centers in Germany and other European regions. " Lin Zhidong said.
ANNA