IC foundries overview (3rd part)
A detailed overview on the IC foundry industry with the main players. In this part: UMC, HuaHong Semiconductor.
UMC (United Microelectronics Corporation)
Established in 1980 and headquartered in Taiwan, United Microelectronics Corporation (UMC) stands tall as a global leader in semiconductor foundry services. The company boasts a rich repertoire of mature node technologies and an extensive suite of production capabilities that cater to a wide array of semiconductor products.
UMC's core focus revolves around cutting-edge process technologies, exemplified by its proficiency in areas such as FinFET, 28nm, and advancements beyond. This strategic emphasis enables UMC to continually adapt and respond to the dynamic and evolving demands of the semiconductor market.
The company's capabilities in process node technologies span across various categories, each addressing specific industry needs. UMC's offerings include the groundbreaking 14nm node, introduced in 2017, which has opened new horizons for high-end applications such as CPU and GPU processors, pushing the boundaries of computing capabilities.
In addition, UMC covers an expansive range of nodes, from 28-22nm catering to consumer electronics, to nodes between 40nm to 90nm that find their applications in the Industrial Internet of Things (IoT) and wearable markets. These nodes support logic/mixed-mode functionalities, amplifying their versatility across various technological domains.
UMC's portfolio nodes are completed from 0.13um to above 0.5um, specifically engineered for RF front-end chips, as well as medium and large-size LCD screen driver chips. This diversified approach underscores the company's commitment to serving multiple sectors with tailored semiconductor solutions.
Notably, within the automotive sector, UMC has positioned itself as a front runner, offering an expansive range of nodes spanning from 40nm to 0.5um. These nodes are specifically curated for various automotive applications, including but not limited to smart cockpit technologies, advanced driver assistance systems (ADAS), body control modules, infotainment systems, connectivity solutions, and powertrain applications.
In essence, UMC's unwavering dedication to innovation, coupled with its diverse portfolio of process nodes, positions the company at the forefront of semiconductor manufacturing.
UMC fab list
UMC stands tall as a leading force in semiconductor manufacturing, boasting an impressive array of advanced 12-inch wafer fabs strategically positioned across Asia. These facilities serve as the engines driving technological breakthroughs in the semiconductor industry.
Located in Tainan, Fab 12A embarked on mass production in 2002, employing sophisticated 14- and 28-nanometer processes to craft customer-centric products. Presently, its production capacity surpasses 87,000 pieces per month, a testament to its operational efficiency and scale.
This specialized technology center situated in Singapore, represents UMC's commitment to catering to diverse application products. With a current production capacity of 50,000 wafers per month, Fab 12i stands as a crucial hub for specialized semiconductor manufacturing and UMC planned a new fab in Singapore for increasing the production capacity of 22/28nm addressing in particular 5G, IoT, and automotive industries.
Initializing mass production in the fourth quarter of 2016, Lianxin's 12-inch wafer fab in Xiamen exemplifies UMC's expansion and commitment to innovation in China. Designed with a total production capacity of 50,000 wafers per month, this facility plays a pivotal role in UMC's global production network.
UMC further solidified its global footprint with the acquisition of USJC, a 12-inch wafer fab company based in Japan. Operating at a capacity of 33,000 pieces per month, this facility specializes in providing logic and specialized technologies as small as 40 nanometers, amplifying UMC's technological prowess in the region.
In conjunction with the 12-inch fabs, UMC owns and operates seven 8-inch fabs and one 6-inch fab, cumulatively boasting a monthly production capacity exceeding 750,000 wafers, equivalent to approximately 8-inch wafers. This vast capacity underscores UMC's commitment to meeting the escalating demands of the semiconductor market.
Currently employing approximately 20,000 individuals worldwide, UMC has established service bases across various key regions, including Taiwan, China, the United States, Europe, Japan, South Korea, and Singapore. This global presence reinforces UMC's dedication to providing seamless services and innovative solutions on a worldwide scale.
UMC's expansive network of cutting-edge wafer fabs coupled with its global reach and technological expertise positions the company at the forefront of semiconductor innovation, ready to drive the future of technology across diverse industries.
2023 Q3 revenue snapshot
UMC's revenue diversification across different process nodes delineates its commitment to aim for diverse technological demands. Notably, the 14nm - 28nm process nodes emerged as a significant contributor, representing 32% of the total revenue. This highlighted UMC's strength in advanced processes, particularly in applications associated with computers, including CPU, GPU, and various controllers pivotal for computer systems.
The 28nm - 40nm node accounted for 13% of the revenue, showcasing a substantial focus on communication technologies such as broadband, Bluetooth, and DSP. Furthermore, UMC's engagement in the 40nm - 65nm and 65nm - 90nm nodes, each contributing 19% and 8% respectively, indicated its involvement in consumer-centric applications and a broad range of technological implementations. The nodes between 0.13 um and above 0.5um represent the 16% of the total revenue share.
UMC's revenue distribution across main applications reiterated its versatility and adaptability. Communication applications led the pack, contributing a significant 46% to the total revenue. This encompassed a spectrum of essential technologies like broadband, Ethernet, and DSP, reflecting UMC's pivotal role in the communication technology landscape.
The company's contributions to computer applications, accounting for 13.0% of revenue, demonstrated its crucial involvement in developing essential components vital for computing systems. The consumer applications segment, representing 23.0% of revenue, underscored UMC's significance in consumer electronics, including DVD players, game consoles, and more.
UMC's revenue spread across different regions echoed its global reach and market penetration strategies. The Asia Pacific region emerged as the dominant revenue generator, constituting 58.0% of UMC's earnings. North America followed suit with 27.0%, showcasing UMC's stronghold in this tech-driven market. Europe accounted for 12.0%, signifying the company's presence in the European semiconductor landscape, while Japan contributed 3.0% to the revenue stream.
Hua Hong Semiconductor Limited
HuaHong Semiconductor, is a state-owned conglomerate formed by: HuaHong Grace and Shanghai Huali Microelectronics Corporation (HLMC). Both corporations are focusing on integrated circuit (IC) manufacturing, research and development, and investments in semiconductor-related sectors. It comprises various subsidiaries and affiliates involved in different segments of the semiconductor industry, including IC design, manufacturing, and sales.
Shanghai Huali Microelectronics Corporation (HLMC) is a semiconductor foundry specializing in semiconductor manufacturing services. HLMC offers a range of services including design, mask manufacturing, wafer fabrication, and testing services. They are known for their capabilities in producing integrated circuits (ICs) at various process nodes to address industries such as: automotive, consumer electronics, and IoT applications.
In December 2023, Huahong Semiconductor signed an agreement with Shanghai Huali Microelectronics (HLMC).
HLMC has granted Huahong Group a non-exclusive license to use its production and process technology. Additionally, HLMC will provide complementary technical consulting services to support the construction of Huahong's 12-inch wafer production line.
The agreement aims to accelerate the research, development, and mass production of the 40nm specialty IC process on Huahong 12-inch production line. This move is expected to further enhance the technological and market competitiveness of the Company's specialty processes.
As a globally leading specialty process wafer foundry, HuaHong Semiconductor follows a development strategy focusing on "8-inch + 12-inch" wafers and advanced "specialty IC + Power Discrete." The two companies will continuously innovate in specialty process technologies like embedded/independent non-volatile memory, power devices, analog & power management, logic, and RF, achieving global leadership in multiple fields.
HuaHong Grace
Huahong Group, a prominent industrial conglomerate in China, is focusing on mature node IC manufacturing process technologies for both 8-inch and 12-inch wafers. One of its wholly-owned subsidiaries, Shanghai Huahong Grace Semiconductor Manufacturing Corporation (HHGrace), was formed through the merger of Shanghai HuaHong NEC Electronics Company and Grace Semiconductor Manufacturing Corporation.
HHGrace, operating under Huahong Group, is engaged in IC manufacturing and provides sales and technical support across multiple regions.
Shanghai HLMC
Shanghai Huali Microelectronics Corporation (HLMC) is a semiconductor foundry established in 2003 in China. As one of the leading semiconductor manufacturing companies in China, HLMC specializes in the development and production of integrated circuits (ICs) for various industries and applications, such as: automotive, telecommunications, consumer electronics, and more.
HLMC is part of HuaHong Group, and has continually invested in research and development to enhance its semiconductor technologies.
Process node portfolio
HuaHong Group process node coverage spans from 0.35um to 90nm, showcasing competitive differentiation in embedded non-volatile memory, power devices, analog & power management, logic, and RF technologies. These differentiated technological platforms hold a strong competitive position globally, backed by years of successful mass production experience in automotive electronic chips.
HuaHong Group, in collaboration with several enterprises, established HuaHong Wuxi. As part of its first-phase project, the company operates a 12-inch wafer fab (referred to as HuaHong Fab 7) with a monthly capacity of 65,000 wafers. This initiative, launched in 2018, marked the world's first 12-inch power device foundry line, covering process nodes from 90nm down to 65/55nm.
The establishment of HuaHong Wuxi and the development of HuaHong Fab 7 signify HuaHong Semiconductor's commitment to advancing semiconductor manufacturing, especially in power devices, while strategically leveraging cutting-edge 12-inch wafer technology.
Shanghai Huali Microelectronics Corporation (HLMC) stands at the forefront of semiconductor innovation, boasting a diverse array of cutting-edge process nodes to cater to various industry demands.
Among its notable offerings, HLMC's technological prowess is evident in its 22nm platform technology, housing the 22nm ULP (Ultra Low Power) and ULL (Ultra Low Leakage) processes. This advanced node ensures optimal performance while maintaining efficiency.
Expanding its capabilities further, HLMC harnesses the power of the 28nm platform technology. Here, it offers multiple options including the 28nm LP (Low Power), 28 HKC+ (High Performance Compact Enhanced Technology), and the 28NP split gate process, catering to a spectrum of performance requirements.
Collaborating with renowned entities like IMEC, Huali Semiconductor Manufacturing has ventured into joint development and transfer of CMOS chip manufacturing platforms, exemplified by their work on the 65nm process. This strategic partnership underscores HLMC's commitment to pushing the boundaries of semiconductor innovation.
Additionally, HLMC's offerings extend to the 40nm process node, contributing to its comprehensive suite of advanced semiconductor technologies.
Several reports suggest that HLMC initiated chip production on a 14nm FinFET process using deep ultraviolet (DUV) immersion lithography machines back in 2020. This technology hints at the potential for producing chips within the sub-10nm range, as many DUV tools possess the capability to support such fabrication.
Thanks to a recent funds injection from “Big Fund 2”, some reports suggest that HLMS may aim to produce 10nm and beyond in the future, becoming the second chip maker capable of producing ICs utilizing advanced nodes in China, after SMIC.
Hua Hong Semiconductor fab list
HLMC fab list
Under the umbrella of Huahong Group, HLMC operates two prominent 12-inch integrated circuit production lines – HLMC fab 5 and HLMC fab 6.
HLMC fab 5 (Huahong fab 5): based in Shanghai, this facility commenced construction in January 2010 and began wafer production in April 2011. Covering process technologies from 55nm to 28nm nodes, it boasts a monthly output capacity of 35,000 wafers.
HLMC fab 6 (Huahong fab 6): Initiated as the second phase production capacity, it is based in Kangqiao, Shanghai, construction began in November 2016, and the facility commenced operations in October 2018. Operating at process nodes from 28nm to 22nm, it was designed with a monthly production capacity of 40,000 wafers.
HuaHong Grace fab list
Huahong Semiconductor ranks as one of the world's largest smart card IC manufacturing contractors and the largest MCU manufacturing contractor in China. In the power device sector, it stands as the world's top-ranked power device wafer manufacturer, uniquely equipped with capabilities for both 8-inch and 12-inch power device manufacturing.
HuaHong Grace manufacturing facilities consist of three 8-inch wafer fabrication plants located in Shanghai (Huahong Fab 1, 2, and 3), collectively achieving a monthly capacity of approximately 180,000 wafers. Moreover, Huahong's new 12-inch wafer fabrication plant in Wuxi (Huahong Fab 7) is dedicated to emerging applications such as IoT and automotive sectors. This plant, currently producing eNVM and CIS (CMOS image sensors), is poised to become China's first factory to produce power devices on 12-inch wafers.
Huahong Grace's strategic layout in sensor chip production predominantly encompasses CMOS image sensor chip manufacturing and MEMS sensor chip manufacturing. On its 8-inch manufacturing platform, Huahong has achieved full compatibility between MEMS devices and standard CMOS technology and production lines. The factory represents an early success in achieving MEMS-CMOS full compatibility manufacturing capability in China, with products including image sensors, magnetometers, accelerometers, pressure sensors, among others.
Huahong Grace serves as a primary sensor chip manufacturing supplier for several top-tier sensor enterprises in China, including Goke Microelectronics, one of China’s prominent image sensor suppliers, and MEMS acoustic sensor chip enterprise, Minxin Microelectronics.
2023 Q3 revenue snapshot
In the latest financial disclosure from HuaHong Grace, the publicly accessible arm of the company, the spotlight remains on the revenue breakdown and market dynamics, offering insights into the semiconductor giant's performance in the semiconductor landscape.
Analyzing the revenue distribution based on process nodes a significant portion of HuaHong Grace's revenue stems from the 0.35um and above nodes (46.9%). However, what stands out is the substantial contribution, exceeding 30%, generated from the 90nm/65nm and associated legacy nodes. This data indicates HuaHong's evolution, showcasing strides in enhancing capacity within higher performance nodes.
A notable share, accounting for 22.3% of revenue, is attributed to the 0.25um and 0.11um process node ICs, underlying HuaHong's engagement and revenue generation across multiple technology nodes.
The revenue segmentation based on applications reveals intriguing insights into the market's demand. Consumer electronics emerge as the primary revenue driver, constituting over 57% of HuaHong Grace's revenue. Following closely are industrial and automotive applications, contributing 28.6%. Communication applications form another substantial segment, comprising 12.6% of the revenue. Notably, niche computing applications represent a niche part with a 2.2% revenue share.
Delving into the geographic distribution of revenue unveils China as the primary market for HuaHong Grace, dominating with a remarkable share of 77.5%. While the China market leads significantly, other regions exhibit a considerable disparity in revenue contributions. North America secures an 8.6% share, closely trailed by Europe at 6.9% and Asia 6.1%. Meanwhile Japan followed with lesser proportions, capturing 0.9%.
The third-quarter 2023 financial report from HuaHong Grace delineates a revenue stream, outlining the company's adaptability across varying technology nodes and application segments. HuaHong Grace's multi-faceted approach, balancing legacy technologies with advancements in performance nodes, and its keen sensitivity to diverse market demands across sectors and regions.