Sanan Optoelectronics Co., Ltd.: 8-inch SiC chips are expected to be put into production in December!

Sanan Optoelectronics Co., Ltd.: 8-inch SiC chips are expected to be put into production in December!

As a leading manufacturer in the SiC industry, Sanan Optoelectronics' related dynamics have received widespread attention in the industry. Recently, Sanan Optoelectronics disclosed a series of latest developments, involving 8-inch transformation, new substrate factory production, establishment of new companies, government subsidies and other aspects.

01 Accelerate 8-inch transformation

Currently in the SiC industry, major manufacturers are actively transforming to 8 inches, and Sanan Optoelectronics is among them. After the first phase of the Hunan Sanan SiC project was fully put into production, in order to comply with the general trend of 6-inch to 8-inch transformation, the second phase of the project will all introduce 8-inch production equipment and processes. Recently, Hunan Sanan's 8-inch SiC production line has made positive progress. On July 2, Sanan Optoelectronics stated on the investor interaction platform that the subsequent expansion of the Hunan Sanan project will produce 8-inch SiC products. At present, the 8-inch SiC substrate has started trial production, and the 8-inch SiC chip is expected to be put into production in December.

source: Hunan Sanan Optoelectronics

On the same day, according to the official microblog of Xiyong Microelectronics Park, Chongqing Sanan Semiconductor's silicon carbide substrate factory has completed the main equipment entry ceremony. This marks that the Chongqing Sanan substrate factory is about to enter the countdown stage.

source: Xiyong Microelectronics Park

According to the person in charge of Chongqing Sanan's infrastructure, the main plant of the project has completed the structural capping in December last year, the exterior wall decoration was completed in May this year, and the outdoor road connection was completed in June. At present, the overall construction progress has been completed by more than 95%, and it is in the critical stage of equipment installation and commissioning. It is expected that the substrate factory will be lit up and connected by the end of August.

According to the data, the total planned investment of Chongqing Sanan ST Silicon Carbide Project is about 30 billion yuan. After the project reaches full production, it will build the country's first 8-inch silicon carbide substrate and wafer manufacturing line, with an annual production capacity of 480,000 8-inch silicon carbide substrates and automotive-grade MOSFET power chips. The revenue is expected to reach 17 billion yuan. With the subsequent mass production of Hunan Sanan's 8-inch SiC substrates and the opening of Chongqing Sanan's 8-inch substrate factory, Sanan Optoelectronics' formal transformation into an 8-inch substrate manufacturer will be further accelerated. As the only domestic manufacturer with a layout of the entire third-generation semiconductor industry chain, Sanan Optoelectronics' 8-inch substrates have begun trial production and will eventually achieve mass production, which will provide more competitive products for subsequent devices, modules and terminal applications, and promote the transformation and upgrading of the SiC industry chain to 8 inches. Relying on its own full industry chain layout, Sanan Optoelectronics is expected to accelerate the implementation of the entire process of 8-inch SiC from substrates to terminal applications.

02 Multi-scenario penetration

After the first phase of the Hunan Sanan SiC project was fully put into production, its annual SiC production capacity has reached 250,000 pieces (6 inches). After the second phase of the project is put into production, the entire project will achieve a total annual production capacity of 480,000 pieces. Moreover, with the introduction of 8-inch products, the product quality of the overall project is expected to be further improved. While Hunan Sanan continues to increase SiC production capacity, business and market expansion are also being promoted simultaneously. Focusing on in-vehicle applications, Hunan Sanan has successively reached cooperation with well-known manufacturers such as Ideal Auto and STMicroelectronics; in the photovoltaic field, Hunan Sanan's partners include Sungrow Power Supply, Growatt, Jinlong, GoodWe, Sineng, etc.; after reaching a strategic cooperation with Vertiv in March this year, Hunan Sanan is expected to accelerate the application of SiC in the data center market. After the mass production of 8-inch SiC products, Hunan Sanan is expected to further penetrate into multiple application scenarios of SiC. While actively promoting the mass production of 8 inches, Hunan Sanan recently established a holding subsidiary to strengthen market expansion. Public information shows that Hunan Sanan Semiconductor Technology Co., Ltd. was established in June 2024, and its business scope includes the sales of power electronic components, semiconductor discrete devices, and semiconductor device special equipment. Shareholder information shows that the company is jointly held by Hunan Sanan Semiconductor Co., Ltd. (90% shareholding) and Xiamen Sanan Semiconductor Technology Co., Ltd. (10% shareholding), and is indirectly wholly owned by Sanan Optoelectronics.

03 Moving towards the goal of double increase in revenue and net profit

By establishing a new market entity, Hunan Sanan has laid the foundation for the smooth entry of new 8-inch products into the market, and 8-inch products are expected to become a new driving force for Sanan Optoelectronics' performance growth. Recently, Sanan Optoelectronics has another good news about its performance. On the evening of June 28, Sanan Optoelectronics issued an announcement stating that it received government subsidies of approximately 364 million yuan, accounting for 99.41% of the company's latest audited net profit attributable to shareholders of listed companies. This will have a positive impact on Sanan Optoelectronics' profit and loss in the second quarter of 2024, and in turn have a positive impact on its full-year performance. In 2023, Sanan Optoelectronics achieved revenue of 14.053 billion yuan, a year-on-year increase of 6.28%; net profit attributable to the parent company was 367 million yuan, a year-on-year decrease of 46.50%. With the help of 8-inch products and subsidy funds, Sanan Optoelectronics is expected to accelerate the realization of the goal of double growth in revenue and net profit. According to the announcement, of the 364 million yuan subsidy funds of Sanan Optoelectronics, 200 million yuan is the special support fund for scientific and technological research and development in 2024. On the one hand, the support funds will help Sanan Optoelectronics to steadily promote 8-inch mass production; on the other hand, the achievements in the 8-inch field are expected to win more subsidies for Sanan Optoelectronics, forming a virtuous circle and ultimately driving performance growth.

04 Summary

Overall, Sanan Optoelectronics is making comprehensive layout in the 8-inch SiC market and is progressing rapidly. It is expected to complete the 8-inch transformation and upgrading earlier in the industry. Combined with the good news in market expansion and scientific research subsidies, Sanan Optoelectronics will further consolidate its position in the SiC industry.

Vetek Semiconductor is an important supplier of SiC Coating EPI spare parts of Sanan Optoelectronics, such as LPE halfmoon parts, EPI wafer susceptor, etc., which have advanced from 6 inches to 8 inches. We will improve our products with the development of customers.