Yandong Microelectronics (YDME) announced plans on December 31, 2024, to issue up to 225 million shares at CNY17.86 (US$2.45) per share to Beijing Electronic Holding Co. (BEHC), targeting CNY4.02 billion in funds. Of this, CNY4 billion will support the Beijing Electronics Holding Semiconductor Manufacturing Co., Ltd (Beidian Integration) 12-inch IC production line project, with CNY20 million allocated for working capital, according to ICSmart.
The Beidian Integration project will develop a 28nm-55nm specialty platform for HV/MS/RF-CMOS technologies, with a CNY33 billion investment and a planned capacity of 50,000 wafers per month (wpm).
Targeting applications including display drivers, mixed-signal circuits, and embedded MCUs, Beidian Integration began construction in 2024, with production set for late 2026 and full capacity by 2030. By 2031, it is projected to generate CNY8.34 billion annually, with an average annual net profit of CNY660 million (2027-2038), per EETimes China.
Strategic expansion and ownership
Established in 2023 with a registered capital of CNY10 million, Beidian Integration is a wholly-owned subsidiary of BEHC. As a state-owned high-tech conglomerate authorized by SASAC, BEHC manages BOE, Sevenstar Electronics, and Beijing Electronic Zone High-tech Group, along with 27 subsidiaries, according to Yahoo Finance.
As YDME's majority shareholder, BEHC focuses on semiconductors, displays, and electronics, with total assets of CNY536.61 billion as of September 30, 2024, per Sina Finance.
Manufacturing capabilities and investments
Founded in 1981, YDME has grown into a leading IC and discrete device provider, achieving a monthly 8-inch wafer capacity of 45,000 by June 2022 and developing advanced planar and trench MOSFET platforms.
In December 2022, YDME raised CNY3.953 billion through a STAR Market IPO to fund its 12-inch IC line with domestic specialty processes.
By April 2023, YDME's Phase I 12-inch wafer line began trial production, with power SBD devices meeting yield targets and a year-end capacity goal of 10,000 wpm.
On November 15, 2024, YDME and its partners injected CNY19.99 billion into Beidian Integration to support its expansion.
YDME plans to deepen its focus on SiPh chips by increasing investments, expanding applications, and scaling operations. The successful fundraising is expected to boost profitability and sustain long-term growth, according to East Money.
China's semiconductor manufacturing expansion
By late 2024, five 12-inch wafer fabs—operated by Runpeng Semiconductor, Natural-Integration Advanced Semiconductor Technology (NAST), YDME, CanSemi, and Hua Hong Semiconductor—began operations, highlighting their critical role in semiconductor manufacturing. SMIC and Guangzhou Zengxin Technology also reported advancements, focusing on power devices and advanced logic chips, per UDN.
Runpeng Semiconductor's 12-inch IC line, launched on December 31, 2024, in Shenzhen, focuses on 40nm+ analog processes. Backed by a CNY22 billion investment, it aims for an annual capacity of 480,000 wafers, serving automotive, renewable energy, industrial, and consumer sectors, according to TrendForce.
On December 30, 2024, NAST launched its 12-inch wafer-level TSV 3D integration line in Zhuhai High-Tech Zone. The first phase supports 240,000 TSV-integrated units annually, with plans to expand to 600,000 by 2032. The facility focuses on 2.5D, 3D, and Micro Assembly technologies, and serves autonomous driving, imaging, and data communications, with applications like Samsung's DDR5 DRAM and SK Hynix's HBM.
CanSemi launched its Phase III 12-inch analog process line on December 28, 2024. The CNY16.25 billion project focuses on 180nm to 90nm technologies for industrial and automotive applications, adding 40,000 wpm and targeting CNY4 billion annual revenue.
Hua Hong Semiconductor launched its Phase II 12-inch production line on December 10, 2024, at the Wuxi IC base. The US$6.7 billion facility supports 65nm to 40nm processes, with a capacity of 83,000 wpm, scaling to 180,000 at full ramp-up.
The simultaneous launch of five 12-inch wafer fabs underscores China's push to expand semiconductor manufacturing. Covering advanced processes, TSV integration, and power chips, these projects enhance domestic capacity and reduce global supply chain reliance.