Guangzhou-based CanSemi Technology has launched production for its third-phase project, representing a CNY16.25 billion (approx. US$2.23 billion) investment. The new facility adds monthly capacity for 40,000 12-inch wafers, utilizing 180–90nm technology to establish a platform tailored to industrial and automotive-grade analog IC production.
The facility’s output is geared toward a diverse range of products, including power devices for power electronics, servers, 5G base stations, automotive applications, signal chain chips, power management ICs, MCUs, and image sensors.
Chinese media outlets, including ICSmart, report that CanSemi’s third-phase production line, launched in August 2022, is now operational. The expansion addresses rising demand in industrial and automotive markets, strengthening domestic analog IC manufacturing in China.
CanSemi advances analog IC manufacturing with phased expansion
A CanSemi representative highlighted the third-phase project’s role in solidifying the company’s position as a key player in Guangdong Province’s semiconductor industry. The initiative seeks to promote industrial cluster development, strengthen collaborations with domestic industrial and automotive chip clients, and nurture local semiconductor talent.
CanSemi operates Guangzhou’s first 12-inch wafer production line, the first to achieve mass production in Guangdong Province and the Greater Bay Area (GBA). The company’s three-phase project is set to reach a total monthly capacity of 80,000 wafers, dedicated to advanced analog IC production, upon full completion.
The project’s first phase broke ground in March 2018, with production starting in September 2019 and reaching full capacity by December 2020, delivering a reported yield of over 97%. The second phase, launched in the first half of 2022, added 20,000 wafers to the facility’s monthly production capacity.
Key investors propel CanSemi with CNY30 bln investment
In June 2022, CanSemi raised CNY4.5 billion in a new funding round, securing investments from top automotive groups like SAIC and BAIC, alongside continued support from key shareholders such as Walden International and GF Securities.
The funding was directed toward the third-phase construction to expand analog IC production capacity. East Money reports that CanSemi’s combined investment in its first, second, and third phases totals CNY30 billion.
CanSemi targets growth with advanced production and IPO plans
As Guangzhou’s first chip manufacturer, CanSemi employs a specialized, customized strategy, leveraging resources in chip design, packaging and testing, end applications, and industrial funds to lay the groundwork for the city’s semiconductor ecosystem.
In March, CanSemi imported 100 lithography machines and achieved a 95% trial production success rate by June. Full-scale production, slated for September, will focus on industrial and automotive chip markets.
Equipped with six advanced ASML lithography machines, CanSemi is poised to begin third-phase production, adding 40,000 12-inch wafers per month and doubling its capacity. After completing a shareholding reform in early 2023, the company plans to invest over CNY4 billion in 2024, ensuring the third-phase project goes live while fast-tracking plans for its fourth phase to solidify its position in China’s IC manufacturing sector, according to East Money.
To advance its fourth-phase project, CanSemi is accelerating its IPO efforts and is expected to attract funding from the CNY344 billion National Integrated Circuit Industry Investment Fund (Big Fund) Phase III.
Article translated by Levi Li
