SEMICON Taiwan 2024 has officially launched with global semiconductor equipment and materials suppliers in attendance.
Notably absent was AMEC, the only company integrated into Taiwan's wafer supply chain. Meanwhile, Naura Technology Group and ACM Research face scrutiny following reports of NAURA's alleged poaching of engineers, which prompted a search of its Taiwan office by authorities.
Taiwan's semiconductor industry has flourished recently, with Chinese equipment manufacturers eager to enter its wafer fabrication supply chain. This year's SEMICON Taiwan, the largest ever, places a spotlight on Chinese firms Naura and ACM. However, AMEC, the only Chinese company involved in TSMC's advanced process equipment supply chain, has quietly opted out of the event.
At SEMICON Taiwan 2024, ACM is showcasing its advanced panel-level packaging electroplating equipment and negative pressure wafer cleaning systems. The company, which also operates an office in Hsinchu, has stated that it remains unaffected by recent industry developments.
Making the most of its presence at this year's expo, ACM introduced semiconductor front-end and advanced wafer-level packaging equipment, including the new Ultra C bev-p edge etching tool for fan-out panel-level packaging (FOPLP) applications.
The Ultra C bev-p tool is crucial for fan-out panel-level packaging (FOPLP), employing a specialized wet etching technique for bevel etching and copper residue removal. This method helps prevent electrical shorts, reduce contamination risks, and maintain the quality of subsequent processing stages, ensuring the long-term reliability of the devices.
Before the expo, authorities reportedly searched the office of a Chinese company suspected of poaching engineers in Taiwan, with Naura among those targeted. The unexpected search of Naura, a major semiconductor equipment manufacturer under a Chinese state-owned enterprise, has shocked many and sparked speculation. Naura has yet to comment on the matter.
Naura's key clients include top Chinese firms like SMIC and Yangtze Memory. In recent years, China’s semiconductor supply chain has focused on localization, boosting the growth of domestic equipment suppliers and prompting local wafer fabs to source equipment and materials locally.
Data show that domestic semiconductor equipment suppliers in China are seeing a boom. Among the top three local firms, Naura reported a revenue of CNY12.335 billion (approx. US$1.74 billion) in the first half of the year, up 46.38% year-on-year, with a net profit of CNY2.78 billion, an increase of 54.54% year-on-year. AMEC saw revenues of CNY3.448 billion, a 36.46% increase, and new orders totaling CNY4.7 billion, up 40.3% year-on-year. ACM achieved a revenue of CNY2.439 billion, a 49.33% year-on-year rise, and a net profit of CNY443 million, which increased by 0.85% year-on-year.
SEMI indicates that China continued to provide for enormous expenditures on semiconductor equipment in July 2024, with expectations to set new records. China's total semiconductor equipment spending for 2024 is projected to reach US$50 billion, making it the most important investment region for new wafer fabs.
In the first half of 2024, China’s semiconductor equipment expenditure totaled US$25 billion, exceeding the combined total of South Korea, Taiwan, and the US. SEMI attributes this growth to the trend of localization in the semiconductor supply chain, with more than ten chip manufacturers actively sourcing equipment and materials domestically.
According to data, China is now the largest revenue source for major semiconductor equipment suppliers. Applied Materials, Lam Research, and KLA each reported that nearly 44% of their revenue in a recent quarter came from China. For Tokyo Electron (TEL) and ASML, the Chinese market is even more crucial, with TEL generating about 49.9% of its quarterly revenue from China and ASML deriving 49% of its revenue from the region.
Despite a global economic slowdown, China was the sole region to record year-over-year growth in semiconductor manufacturing equipment expenditure during the first half of the year.
Article translated by Levi Li
