Hohhot moves big in semiconductor manufacturing industry

Zhonghuan Semiconductor Co Ltd plans to establish an industrial base of semiconductor material in Hohhot, North China's Inner Mongolia autonomous region, marking a big step forward for the city's hi-tech industrial economy, announced the local government on July 30.

The move is significant for the research of core technologies of semiconductor material for the integrated circuit industry, said Feng Yuzhen, mayor of Hohhot, speaking at the signing ceremony.

Countries such as Japan, Germany and South Korea currently dominate in the global market of silicon wafer, which is a prominent material in the semiconductor manufacturing industry.

China has long lagged behind these developed markets in producing silicon wafers, but it is hoped that the establishment of the base will be a significant step towards bucking the trend. 

Only a few companies in the country currently possess the core technologies for producing 8-inch (200mm) silicon wafers and 12-inch (300mm) silicon wafers.

According to a third party analyst, China is presently nearly 100 percent reliant on imports of 12-inch silicon wafers.

To deal with the long-term dependence of imported silicon wafers, Zhonghuan launched a project focusing on the research and production of silicon wafers in November 2017.

Shen Haoping, chairman at Zhonghuan, expressed his gratitude for the local government's firm support during the signing ceremony.

He noted that the base is of strategic importance to the upgrade of the national supply chains in the semiconductor manufacturing industry.

Feng stressed that the local government will provide comprehensive services to help with the implementation of the project.