In response to the escalating US bans, Gerald Yin, a prominent figure in China's semiconductor equipment industry, has finally spoken out. Yin, who had spent an extended period in the US and held high positions in semiconductor companies there, criticized the US sanctions against China and stated that they are groundless and will yield unfavorable outcomes.
During the 2023 China Semiconductor Equipment Conference held recently, Yin, the Chairman and CEO of Advanced Micro-Fabrication Equipment Inc. (AMEC), made these remarks in his keynote speech. As a leading figure in China's semiconductor industry, his words seemed to reflect a sense of pent-up frustration.
Yin noted that the challenges in developing advanced process equipment are substantial. Currently, European, American, and Japanese companies hold 85% of the semiconductor equipment market. "But how did the US develop its semiconductor equipment? Many leading developments were spearheaded by Chinese students studying abroad," he said.
He provided data indicating that eleven categories of semiconductor equipment, including capacitively coupled plasma (CCP) etching, inductively coupled plasma (ICP) etching, plasma-enhanced chemical vapor deposition (PECVD), low-pressure chemical vapor deposition (LPCVD), atomic layer deposition (ALD), physical vapor deposition (PVD), chemical mechanical polishing (CMP), electrochemical plating (ECP), optical inspection, electron beam inspection, and metal-organic chemical vapor deposition (MOCVD) epitaxy, were all led by Chinese students studying abroad or acting as key contributors.
Yin stated that the US attempts to hinder China using equipment are not only irrational but also unlikely to yield positive results. Due to the impact of US restrictions, many leading figures in these fields have returned to China. Given time, China still has the capability to develop internationally competitive products.
In the past decade, plasma thin film and chemical etching equipment have been the fastest-growing segments. AMEC already covers over 95% of plasma etching. Additionally, AMEC, Naura Technology, and Piotech jointly cover thin-film equipment.
Indeed, benefiting from the domestic substitution of semiconductor equipment, both AMEC and Naura have forecasted substantial growth in their sales and net profits for the first half of 2023. AMEC estimates a growth of 28% in revenue and 13-22% in net profit, while Naura estimates a growth of 43–64% in revenue and 1.3–1.6 times in net profit for the first half of the year.
Despite the favorable trend towards domestic equipment substitution in China, it has also led to unprecedented competition. Yin openly discussed the severe internal competition within the domestic equipment sector, resulting in harmful competition obstructing industry development. This includes illegally obtaining competitors' trade secrets and copying their products. Companies are involved in both chip manufacturing and equipment development, leading to counterfeiting of suppliers' equipment.
Furthermore, there are issues of high-salary poaching disrupting the talent market, relying on low-cost competition rather than advanced technology and superior performance, in addition to repetitive investment to gain mere financial returns - these led to internal competition and low success rates. Yin also noted unequal treatment of companies, reliance on relationships, and even using favors to gain business opportunities. Moreover, employees leaving companies take away technical data and corporate secrets, and employees entering companies do not sign effective non-competition agreements – all of these hinder development.
Yin recommended that relevant authorities and industries establish fair competition regulations to reduce internal consumption and promote healthy industry development.
On the same day, during the 2023 Semiconductor Manufacturing Technology and Equipment Materials Chairman's Forum, several semiconductor equipment company chairpersons expressed their intention to seize opportunities and accelerate the development of domestic equipment in China.
Li Jinxiang, director of Shanghai-based GTA Semiconductor, pointed out that despite domestic equipment entering production lines, there are still three bottlenecks: the inability to provide equipment for processes like lithography, measurement, and failure analysis; having equipment that cannot meet specific process requirements, such as special material growth and removal equipment; and key processes having reached the level of maturity to boost yields.
Brian Lu, chairman of Piotech, emphasized during the meeting that semiconductors are a global industry, and isolated development is not viable. It must be open and cooperative, especially in the post-Moore's Law era, with new processes like chiplets requiring collaboration. Tojing has developed two mixed bonding devices, including wafer-to-wafer bonding products and chip-to-wafer bonding surface pre-treatment products, mainly used in the wafer-level 3D integration sector.
