From renting a factory in Hangzhou to starting a business, he Xianhan is now at the helm of Ferrotec's 10 companies in China. Today, Qiantang new area has become an important industrial base of Ferrotec (China). The output value of Dahe Jiangdong new materials, a subsidiary of the group, will grow sharply in 2020 against the trend. Zhongxin wafer has also entered a critical period of silicon wafer product certification. Recently, our reporter interviewed Mr. He Xianhan, chairman of the board of directors and President of Ferrotec (China), who shared his views on the development of semiconductor industry and the future investment plan of Ferrotec (China) in Qiantang new area.

    Qiantang New Area News: Recently, Zhongxin wafer successfully rolled off the production line, the first 12 inch silicon epitaxial wafer. Please talk about what the new technological breakthrough means to the development of the enterprise?

    He Xianhan: the first 12 inch silicon epitaxial wafer was successfully rolled off the production line, marking that Zhongxin Jingyuan has become the first domestic enterprise that can independently complete the research, development and production from 12 inch single crystal, polishing to epitaxy. As we all know, semiconductor silicon polished wafer is the basic material for chip manufacturing. Epitaxial wafer is a new layer of silicon single crystal layer on the polished wafer. For example, polished wafer is the blank room, epitaxial wafer is the hardbound room. Epitaxial wafer is more suitable for high-end chip manufacturing for some 5g equipment and artificial intelligence equipment applications. The diversification of product types means that we can develop more downstream customers and increase the added value of products.

    Qiantang New District News: what is the demand for large silicon products in the domestic market? What is the layout and planning of Zhongxin wafer on the product line in 2021? When is the bulk order expected?

    He Xianhan: due to the growth of consumer electronics and storage device market, there is a strong demand for 8-inch silicon chips in the domestic market, which is in short supply. It is worth looking forward to that Zhongxin wafer has built a production capacity of 350000 pieces of 8-inch silicon wafers per month, and we hope to make a big show in this field in 2021.

    Qiantang New District News: when is the batch order expected?

    He Xianhan: at present, our 8-inch silicon wafer products have been sent to several downstream customers for certification. If we are optimistic, there will be batch orders in the second half of 2021, and the 8-inch silicon wafer production line is expected to achieve full production by the end of the year. In addition, our 12 inch silicon wafers have also been sent to TSMC, SMIC international, Changjiang storage and other enterprises for certification, and the results are expected in the second half of 2021.

    Qiantang New Area News: in November 2020, Zhongxin wafer completed the "mixed reform" and the production expansion round of capital increase. What is the impact on the development of the enterprise? In the future, whether enterprises have IPO plans.

    He Xianhan: "mixed reform" and production expansion round capital increase are of great significance for Zhongxin wafer's additional investment. At the same time, domestic capital comes in, which improves the enterprise's domestic popularity and helps to carry out upstream and downstream cooperation.

    Semiconductor industry is a capital intensive industry, and listing and financing is very important for the development of Zhongxin wafer. IPO, enterprises have been actively promoting, mixed reform is one of the steps. In 2021, Zhongxin wafer will also introduce new capital to diversify the company's equity and complete the equity sorting. The company plans to be listed on the science and technology innovation board in 2022. According to the company's plan, if listed successfully, the company will also start the second phase construction project in Qiantang new area.

    Qiantang New District News: in 2020, "semiconductor industry" can be said to be a hot word. In order to get out of the "neck" dilemma of this industry, the state has also issued special industrial policies. As an entrepreneur who has been engaged in semiconductor industry for many years, what do you think is the gap between domestic and foreign semiconductor industry?

    He Xianhan: in the past long time, domestic semiconductor products were highly dependent on imports, and the whole industry ecosystem was very weak. This also caused the gap between the development level of domestic semiconductor industry and foreign countries, which is all aspects, including the advanced technology, the integrity of industrial chain, and the talent resources. At present, China has realized that the way to catch up with the semiconductor industry has to go, and there are many "lessons" to make up for. Take the hardware equipment as an example, not only the key equipment such as lithography machines need to be imported, but most of the auxiliary equipment and consumables also depend on imports, and the cultivation of professional talents needs to be done step by step.

    Qiantang New District News: how should domestic enterprises overcome these difficulties and narrow the gap?

    He Xianhan: to catch up, we need determination and patience. Semiconductor industry has a large investment and a long return period, so many enterprises have to survive the early loss. Take Zhongxin Jingyuan as an example, the initial investment may reach 6 billion yuan, and the sales volume after reaching 4 billion yuan, so the initial investment is very large. But once the enterprise obtains batch orders, it will form a stable profitability, of course, the whole cycle is relatively long. If you choose this industry, you must have no distractions and long-term investment in order to have a return.

    Of course, it is not enough to rely on the strength of enterprises alone. In terms of the development process of semiconductor industry in South Korea, Japan and other countries, the government's strong support can play a key role. The development of domestic semiconductor industry needs a group of large funds to support a group of truly competitive enterprises engaged in technological innovation.

    Qiantang New Area News: the semiconductor industry is one of the leading industries in Qiantang new area, but at present this industry also has the hidden worries of blind investment and overcapacity. As one of the "think tank experts" specially employed by Qiantang core Valley, how do you think the semiconductor industry planning and project recruitment of the new area should avoid this problem.

    He Xianhan: there is indeed a hidden worry about blind investment in the semiconductor industry in China. When recruiting and investing in new projects, the new area should conduct a comprehensive review from the aspects of team, project experience, technology source and technology maturity. It should not rush for success, but pay attention to project quality. It is necessary to set up an expert evaluation think tank, because semiconductor projects have large investment and strong professionalism. Only experts with industrial background can have a comprehensive evaluation. I am very willing to be one of them, hoping to provide professional suggestions for the development of semiconductor industry in the new area.

    Qiantang new area daily: what other aspects do you think the new area needs to strengthen its support for the development of semiconductor industry.

    He Xianhan: one of the actual needs is the lack of industrial talents. Originally, talents in the domestic semiconductor industry are very scarce. With the upsurge of project investment, the "talent grabbing" is more intense. Focusing on the Qiantang new area, I think the attraction for high-end talents is not enough, the city supporting facilities are not perfect, and it is difficult to retain talents.

    In order to overcome this shortcoming, our company is actively introducing experienced talents from South Korea, Japan and other places. At the same time, we are constantly introducing technicians from Shanghai factory to speed up the production capacity construction of Zhongxin wafer. Therefore, it is hoped that the new area will make greater efforts in the talent policy of the semiconductor industry, and in the housing and talent subsidies, so as to help enterprises attract and retain talents.

    In addition, I still call on local governments to be patient in developing the semiconductor industry and give long-term support to entrepreneurs with a sense of mission and responsibility. At the same time, industrial planning should focus on the long term, and it is best to build a semiconductor industrial park.