March
Semiconductor Major Events
Monthly IC Events Summary
Hot Trends
Government Work Report: New Achievements in Integrated Circuits, Artificial Intelligence, Quantum Technology, and Other Fields in 2024
On the morning of March 5, the third session of the 14th National People’s Congress opened.
The government work report pointed out that in 2024, the pace of “progress” is solid and powerful. This is mainly reflected in new progress in industrial upgrading, with grain production first reaching a new level of 1.4 trillion jin, and yield per mu increasing by 10.1 jin; the added value of high-tech manufacturing and equipment manufacturing industries increased by 8.9% and 7.7%, respectively, with the annual production of new energy vehicles exceeding 13 million units; the added value of information transmission software and information technology services, as well as leasing and business services, increased by 10.9% and 10.4%, respectively. There are new improvements in innovation capabilities, with new achievements in integrated circuits, artificial intelligence, quantum technology, and other fields.
Su Zhou Accelerates Development of AI Chip Industry with Special Policies to be Released
On March 17, the “Several Measures for Accelerating the Development of the AI Chip Industry in Suzhou (Draft for Comments)” was released, aiming to seize the opportunity of rapid development of artificial intelligence technology and accelerate the innovative development of the AI chip industry. This document was drafted by the Suzhou Municipal Bureau of Industry and Information Technology and is now open for public comments, with a deadline of April 16, 2025.
It proposes to focus on key directions such as GPU general-purpose chips, ASIC dedicated chips, FPGA semi-customized chips, storage-computing integrated chips, and silicon photonic chips, increasing investment attraction efforts, and accelerating the introduction of a number of high-quality projects and leading enterprises. Comprehensive support will be provided for key projects in terms of space assurance, site construction, and talent introduction. AI chip companies are encouraged to enhance resource integration capabilities through mergers and acquisitions, expand business along the upstream and downstream of the industry chain, and conduct mergers and acquisitions for high-quality AI chip companies, with incentives for county-level cities (districts) to reward enterprises for mergers and acquisitions.
Nanjing New Policy Released: Supporting Mergers and Acquisitions in the Integrated Circuit Sector
On March 10, the “Several Measures to Support High-Quality Development of Enterprise Mergers and Acquisitions in Nanjing” (hereinafter referred to as “Several Measures”) was released, proposing to carry out mergers and acquisitions based on industrial advantages and future industrial directions, leverage the leading role of state-owned enterprises, utilize the advantages of leading listed companies, support listed reserve companies in participating in mergers and acquisitions, support cross-regional mergers and acquisitions, strengthen financial support for mergers and acquisitions, develop and expand merger and acquisition funds, optimize market service ecology, and prevent risks in mergers and acquisitions.
The “Several Measures” encourage enterprises to actively carry out mergers and acquisitions in industries such as biomedicine, integrated circuits, new energy vehicles, low-altitude economy, artificial intelligence, and robotics, rapidly enhancing industrial scale and achieving breakthroughs in key technologies.
Wuhan Promotes New Policies for IC Industry Development, Offering Up to 6 Million Yuan Subsidy for Advanced Processes Below 14nm
On February 21, the Wuhan Municipal Bureau of Economy and Information Technology released the “Several Policy Measures to Promote the Development of the Integrated Circuit Industry in Wuhan (Draft for Comments)” aimed at further accelerating the high-quality development of the integrated circuit industry in Wuhan.
The draft for comments states that support will be provided for the first round of wafer fabrication of integrated circuit products. For new products independently designed by integrated circuit companies, a subsidy of up to 50% of the first round wafer fabrication costs (including mask and IP acquisition costs) will be provided, with a maximum subsidy of 6 million yuan for advanced processes (below 14nm) and a maximum subsidy of 3 million yuan for mature processes (14nm and above).
Industry Chain Dynamics
120 Billion Yuan Investment, Wuhan Pilot Rare Materials Project Expected to Fully Cap by March
According to news from China Optics Valley, the Wuhan Donghu Comprehensive Protection Zone Pilot Rare Materials Project, a planned investment of 120 billion yuan, is rapidly growing at a visible speed. This project includes production workshops, R&D centers, office buildings, and supporting facilities. Except for the 1st and 4th workshops, which are still under construction, other main buildings were capped in January and are expected to be fully capped by mid-March, with equipment installation completed and production delivered by the end of the year.
The Pilot Rare Materials Project was signed and settled in March 2024, with substantial construction starting at the end of July of the same year. The main building of the high-end compound semiconductor materials and chip industrialization base project is expected to be capped by January 15, 2025.
Over 1 Billion Yuan Investment, Ningbo Guanshi Semiconductor Photomask Manufacturing Project Commences
On March 19, the Ningbo Guanshi Semiconductor Photomask Manufacturing Project commenced.
In July 2024, Ningbo Guanshi Semiconductor Co., Ltd. reached a critical milestone with the introduction of its first electron beam photomask lithography machine. This equipment is key for mass production at the 40nm technology node and R&D at the 28nm technology node. Currently, Ningbo Guanshi has achieved delivery of 55nm photomask products and the commencement of the 40nm production line.
Shengjian Technology’s 600 Million Yuan Semiconductor Project Commences Production in Shanghai Jiading
On March 25, Shengjian Technology’s domestic semiconductor process auxiliary equipment and key components project (Phase I) commenced production. Previously, Shengjian Technology signed an investment agreement with the Jiading Industrial Zone Management Committee. This project covers an area of approximately 27,728.6 square meters, with a planned total investment of about 600 million yuan, aiming to create a platform integrating R&D, manufacturing, sales, and maintenance services for domestic advanced semiconductor auxiliary equipment and key components, mainly producing process waste gas treatment equipment, vacuum equipment, and temperature control equipment.
Leading Enterprises Intensively Merging and Integrating
Against the backdrop of ongoing external technology blockades, Chinese semiconductor companies are strengthening their industry chain collaboration capabilities through strategic mergers and acquisitions, promoting breakthroughs in independent innovation.
Within this month, leading companies such as GeLun Electronics, Yangjie Technology, and Zhixing Technology have announced acquisition plans covering key areas such as EDA tools, chip IP, power electronics, and automotive electronics, showcasing the dual-driven development path of “endogenous growth + resource integration” in China’s semiconductor industry.
Industry Attention
Huada Jiutian Plans to Acquire Controlling Stake in Xinheng Semiconductor
On March 17, Beijing Huada Jiutian Technology Co., Ltd. temporarily suspended trading of its stock. At noon, the company announced the reason for the suspension, which is planning to acquire a controlling stake in Xinheng Semiconductor Technology (Shanghai) Co., Ltd. through issuing shares and cash payments.
The announcement stated that this transaction is still in the planning stage, with preliminary identified transaction parties including Shanghai Zhuohe Information Consulting Co., Ltd., Shanghai Xiangwen Minshen Information Consulting Co., Ltd., Shanghai Heai Enterprise Management Center (Limited Partnership), Shanghai Yanshen Enterprise Management Center (Limited Partnership), Shanghai Yidi Ai Enterprise Management Center (Limited Partnership), Shanghai Feitejia Enterprise Management Center (Limited Partnership), Shanghai Feierte Enterprise Management Center (Limited Partnership), and Shanghai Meiai Enterprise Management Center (Limited Partnership), but the scope of the transaction parties has not yet been finalized.
Some Memory Chip Prices Rise Over 50%
According to supply chain news, Samsung and SK Hynix also plan to raise prices starting in April to respond to market trends. These two companies have significantly reduced production, leading to a more than 10% decline in output in the first quarter compared to the end of 2024. Samsung’s delivery volume in March was only 20% to 25% of original orders, while SK Hynix and other manufacturers faced similar situations. This tight supply situation has provided strong support for price increases. It is expected that normal deliveries will resume after April, with NAND prices expected to rise by about 10% or more.
Domestic memory chip companies have also begun to follow suit. Recently, there have been reports that Yangtze Memory’s retail brand ZhiTai will also raise procurement prices for channels starting in April, with an increase of over 10%. Industry insiders pointed out that this year’s price increases in the memory chip market are mainly concentrated in the 3D NAND field, with overseas manufacturers and Yangtze Memory being the main beneficiaries. The domestic 2D NAND market remains stable due to mature technology and sufficient supply.
General Administration of Customs: China’s Integrated Circuit Exports Reached 180.44 Billion Yuan in the First Two Months
According to data from the General Administration of Customs, in the first two months of 2025, China’s total goods trade import and export value was 6.54 trillion yuan, a year-on-year decrease of 1.2% (compared to the same period last year, there were two fewer working days in the first two months of this year, and after excluding non-comparable factors, imports and exports grew by 1.7%). Among them, exports were 3.88 trillion yuan, an increase of 3.4%; imports were 2.66 trillion yuan, a decrease of 7.3%.
In the first two months, China exported electromechanical products worth 2.33 trillion yuan, an increase of 5.4%, accounting for 60% of total exports. Among them, automatic data processing equipment and its components amounted to 217.68 billion yuan, an increase of 11.7%; integrated circuits reached 180.44 billion yuan, an increase of 13.2%; mobile phones were 134.08 billion yuan, a decrease of 2.2%; and automobiles were 116.02 billion yuan, an increase of 3.7%.
Institutions: Total Investment in China’s Semiconductor Industry Projects in 2024 is 683.1 Billion Yuan
Recently, market research firm Counterpoint Research reported that in the first three quarters of 2024, the revenue of the top five wafer fabrication equipment (WFE) manufacturers, including Applied Materials, ASML, TEL, KLA, and Lam Research, increased by 3%, with storage demand being the main driver.
CINNO Research’s latest statistics show that the total investment in semiconductor industry projects in China (including Taiwan) in 2024 is expected to reach 683.1 billion yuan, a year-on-year decrease of 41.6%. Nevertheless, data from specific segments indicate that investment in semiconductor equipment has increased by 1.0%, reaching 40.23 billion yuan, becoming the only investment category to achieve positive growth.
In terms of investment structure, wafer fabrication remains the main focus of funding, with an investment amount of 256.9 billion yuan in 2024, accounting for 37.6%, but down 35.2% year-on-year. Investment in chip design is expected to reach 179.8 billion yuan, accounting for 26.3%, down 39.5% year-on-year.
Source: Jiwei Network
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Haimen Jiwei Industrial Innovation Base
The Haimen Jiwei Industrial Innovation Base is located in the Haimen Economic and Technological Development Zone, co-built by the Haimen Economic and Technological Development Zone and the ICT industry consulting service organization Aijwei. The base focuses on providing services during the preparation period for “mature projects” and supporting consulting services after landing, aiming to cultivate more specialized and innovative enterprises and high-tech enterprises, promoting the development of the Haimen semiconductor industry chain, and establishing a “Haimen landmark” in the Chinese integrated circuit industry landscape.