The China Semiconductor Industry Association announced an important policy adjustment on April 11, 2025, changing the certification standard for the origin of integrated circuits from “packaging location” to “wafer fabrication location.” This new regulation is expected to accelerate the migration of global chip companies’ wafer fabrication processes to mainland China, bringing a significant influx of new orders to local wafer foundry companies.
Wafer fabrication is a critical verification step in transforming chip designs into physical products, requiring small-batch pilot production (typically dozens to hundreds of wafers) to test design feasibility and process stability, ultimately determining whether the chip can successfully enter the market. This article will provide a detailed analysis of six core companies that may benefit, ordered by company size.
The first company mentioned is SMIC (Semiconductor Manufacturing International Corporation), the second-largest pure-play foundry in the world, covering 8-inch and 12-inch chip manufacturing, with technology nodes ranging from 0.35 microns to 14 nanometers. By the end of 2024, its equivalent monthly capacity for 8-inch wafers will reach 948,000 wafers, with cumulative shipments exceeding 8 million wafers. The 2024 financial report shows that the company achieved a revenue of 57.796 billion yuan, with the wafer foundry segment contributing 53.246 billion yuan, a year-on-year increase of 30.3%. However, due to increased R&D investment, net profit decreased by 23.31% year-on-year to 3.699 billion yuan.
The second company, Hua Hong Semiconductor, excels in specialty processes and ranks as the fifth-largest foundry globally. The company focuses on five major areas, including embedded memory and analog power management, with technology nodes ranging from 0.35 microns to 55 nanometers. Its 12-inch production line in Wuxi has achieved a monthly capacity of 83,000 wafers, with overall wafer shipments in 2024 increasing by over 10%. The annual revenue reached 14.388 billion yuan, with R&D investment accounting for 11.42%. Although net profit was only 381 million yuan, it demonstrates a commitment to continuous technological investment.
The third company, Jinghe Integrated Circuit, has core competencies in panel driver chips and image sensors. As the ninth-largest foundry globally, controlled by the Hefei State-owned Assets Supervision and Administration Commission, its driver chip processes cover 55-150 nanometers, and image sensor technology has reached the 55-nanometer node. A strategic partnership with leading security company Sitiwei has achieved monthly deliveries of 15,000 stacked wafers, with 2024 revenue increasing by 27.69% year-on-year to 9.249 billion yuan, and net profit soaring by 151.67% to 533 million yuan.
The fourth company, Chipone Technology, originated from the power device division of SMIC and is now the tenth-largest foundry globally. It focuses on automotive-grade IGBTs and silicon carbide devices, with its latest SiC MOSFET products achieving world-leading yield rates, and its automotive analog chip technology filling domestic gaps. In 2024, revenue grew by 22.25% to 6.509 billion yuan, although it still reported a loss of 968 million yuan, the loss margin has narrowed by 50.57% year-on-year.
The fifth company, China Resources Microelectronics, is the largest IDM (Integrated Device Manufacturer) semiconductor enterprise in China, with a monthly capacity of 70,000 8-inch and 200,000 6-inch wafers. In 2024, revenue slightly increased by 2.2% to 10.119 billion yuan, while net profit decreased by 47.55% to 776 million yuan. However, its mask factory technology and MOSFET device R&D capabilities remain at the forefront domestically.
The sixth company, Saimo Electronics, became a leader in MEMS foundry through the acquisition of Swedish Silex, with its 8-inch production line in Beijing continuing to ramp up. Although revenue in 2024 decreased by 7.31% to 1.205 billion yuan, resulting in a loss of 170 million yuan, its accumulation in advanced packaging technologies such as TSV and TGV, as well as breakthroughs in gallium nitride epitaxy, still demonstrate a technological reserve advantage.
This adjustment in origin rules not only breaks international trade barriers but also marks a critical turning point for the Chinese semiconductor industry, shifting from technology following to market-driven. The technological accumulation and capacity layout of these six companies make them direct beneficiaries of this round of industrial transformation.
In the next three years, as the process of domestic substitution accelerates, it is recommended to closely monitor the technological breakthroughs and capacity release pace of these companies, but it should be noted that the content of this article does not constitute any investment advice.
Follow our public account for daily shares of popular sectors and high-value companies.