Reply report on the implementation letter of the opinions of the audit center of Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects
Sponsor (lead underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
April, 2002
Shanghai Stock Exchange:
According to the requirements of szkss (refinancing) No. [2022] 73 implementation letter of the audit center on Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects (hereinafter referred to as the “implementation letter”) issued by your exchange on April 14, 2022, China Securities Co.Ltd(601066) (hereinafter referred to as ” China Securities Co.Ltd(601066) securities”, “sponsor” or “sponsor”) as the sponsor (lead underwriter) of Changzhou Galaxy Century Microelectronics Co.Ltd(688689) (hereinafter referred to as ” Changzhou Galaxy Century Microelectronics Co.Ltd(688689) ,” issuer “or” company “) issuing convertible corporate bonds to unspecified objects, carefully discussed, verified and implemented the issues raised in the implementation letter item by item based on the principles of diligence, honesty and trustworthiness, And made a reply one by one. The specific reply is attached.
Explanation on the content, interpretation, format, supplementary and updated disclosure of the reply:
1. Unless otherwise specified, the abbreviations or terms used in this reply have the same meanings as those in the prospectus for Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects (draft of the meeting).
2. In this reply, if the mantissa of the total count is inconsistent with the mantissa of the sum of the listed values, it is caused by rounding.
3. The font of this reply represents the following meanings:
Issues listed in the letter of implementation in bold (BOLD)
Reply to the questions listed in the implementation letter
The contents listed in the original prospectus are in Song typeface
interpretation
Dissipative power refers to the maximum power when the transistor can maintain stable operation and the parameter change does not exceed the specified allowable value. It is closely related to the maximum allowable junction temperature of the transistor and the maximum current of the collector
Rated current refers to the current that can work continuously for a long time under rated environmental conditions (ambient temperature, sunshine, altitude, installation conditions, etc.)
Like an assembly line, chips are manufactured through a series of process steps. Generally, there are two periods of time in the process of chip manufacturing, which can be called flow chip. Mass production of chips is one of them; In addition, in order to test whether the chip design is successful, it is necessary to test whether each process step is feasible and whether the circuit has the required performance and function from a circuit diagram to a chip. If the chip is successfully streamed, the chip can be manufactured on a large scale; On the contrary, we need to find out the reasons and carry out the corresponding optimization design
Power toll package refers to a package type suitable for high-power applications and specially tailored for low on resistance and high-speed switching MOSFET
SGT structure refers to the full name: shield gate trench, which is translated into “shield gate trench” in Chinese. The design can optimize the MOS process flow of the device, reduce the production cost and improve the yield of the product
Chinese translation is “groove”. Because the channel is arranged longitudinally, the area of the unit can be reduced. The trench structure refers to and a large number of units can be arranged. Therefore, the on resistance can be reduced under the condition of the same chip area
DFN packaging technology refers to the abbreviation of dual flat no leads package
When the MOSFET is in the off state, the voltage accumulated on the inductor exceeds the MOSFET breakdown avalanche voltage, resulting in avalanche breakdown. When avalanche breakdown occurs, the instantaneous discharge current of the inductor will flow through the closed MODFET, resulting in high power loss
Question 1 Please explain to the issuer: the specific product categories and corresponding capacity planning of the industrialization project of vehicle specification level semiconductor devices in the raised investment project of the issuer, the market competition in the corresponding subdivided fields, and the specific product categories corresponding to the orders of vehicle specification level devices on hand; The issuer’s technical R & D layout, technical level, revenue proportion in the reporting period and on-hand orders on MOSFET devices, and clarify whether the products of this raised investment project involve MOSFET devices. If so, please explain the corresponding capacity planning and benefit prediction.
The issuer is requested to revise the relevant statements in the prospectus and the inquiry reply in combination with the above matters.
The recommendation institution is requested to check and comment.
[reply]
[description of issuer]
1、 Specific product categories, corresponding capacity planning and market competition in corresponding segments of the vehicle specification semiconductor device industrialization project in the issuer’s raised investment project;
(I) specific product categories and corresponding production capacity planning of vehicle specification semiconductor device industrialization project in the issuer’s raised investment project
The main products of the company’s industrialization project of vehicle specification semiconductor devices are vehicle specification semiconductor discrete devices. According to the definition of the World Semiconductor Trade Statistics Association (WSTS), discrete devices can be divided into small signal devices and power devices according to power and current indicators. Among them, dissipative power less than 1W (or rated current less than 1a) is classified as small signal devices, and dissipative power not less than 1W (or rated current not less than 1a) is classified as power devices; According to the chip structure and function, it can be divided into diode, triode, rectifier bridge, etc.
The specific product category structure of the raised investment project can be listed in the following table:
The general name of products is level-1 category and level-2 category. The subdivisions involved in this raised investment project
Small signal diode, switching diode, Schottky diode, voltage stabilizing diode, small signal device diode, ESD protection diode
Small signal triode MOSFET, bipolar triode (BJT), vehicle gauge semiconductor discrete device digital triode
Rectifier diode, fast recovery diode, Schott power device, power diode base diode, transient diode (TVS), bidirectional trigger diode, solid-state discharge diode, voltage stabilizing diode
The general name of products is level-1 category and level-2 category. The subdivisions involved in this raised investment project
Power triode MOSFET and bipolar triode (BJT) rectifier bridge are not involved
The annual production capacity planning of specific product categories of the raised investment project is as follows:
Unit: million pieces, 10000 yuan
Annual production capacity planning and annual benefit calculation of product categories
Small signal diode 3151501248390
Small signal triode 885.50341990
Subtotal of small signal devices 4037001590380
Power diode 620.001592835
Power triode 189.00876665
Including: MOSFET 150.50825460
Subtotal of power devices 809. Shandong Sunway Chemical Group Co.Ltd(002469) 500
Total 484 Beijing Dynamic Power Co.Ltd(600405) 9880
Note: the calculation of the raised investment capacity is based on the equipment in the production process, especially the key equipment, as well as the corresponding supporting molds, tooling and fixtures. However, the molds are different due to different product shapes and sizes, which are embodied in the form of packaging. Therefore, the packaging shape is finally taken as the minimum unit of planned capacity.
The correspondence between most subdivision varieties and packages is many to many, that is, the same product model can correspond to several packages, and the same package can also correspond to several subdivision product models. Therefore, the above table mainly focuses on the category of secondary products, and does not specify all subdivided product models.
According to the above table, small signal devices, especially small signal diodes, account for a high proportion of the planned production capacity after the project is completed; From the perspective of expected benefits, power devices account for a relatively high proportion of the total benefits due to the higher estimated unit price.
(II) market competition in corresponding segments
As mentioned above, the vehicle scale semiconductor discrete devices of the raised products can be divided into small signal devices and power devices from the perspective of dissipated power (or rated current), and diodes and triodes from the perspective of chip structure and function. The above classification dimensions do not cross each other. The schematic diagram is as follows:
Starting from the four categories of signal devices, power devices, diodes and triodes (including MOSFETs), this paper expounds the market competition in the corresponding segments of the products of this raised investment project.
1. Small signal device field
After decades of development, the technology development of small signal device industry is mature and the market is full of competition. Manufacturers in Europe, America, Japan and Taiwan China have the advantage of first out. In terms of technical level, foreign well-known semiconductor discrete device manufacturers master the leading 8-inch wafer manufacturing technology, multi specification, medium and high-end chip manufacturing technology and advanced chip packaging technology, so as to maintain an advantageous position in the global competition. Especially in the field of small signal MOSFET, most of the current market share is controlled by European and American leading enterprises represented by NXP and Infineon. From the application field of downstream products, the products produced by foreign leading manufacturers are mainly used in medium and high-end fields such as automotive electronics, industrial control and the Internet of things, with strong bargaining power and generally high product profit margin.
China’s small signal device industry started late and is in the stage of rapid development. The number of market participants of domestic products is small. Except for Changzhou Galaxy Century Microelectronics Co.Ltd(688689) , only a few brands such as Leshan Radio, Jcet Group Co.Ltd(600584) , Yangzhou Yangjie Electronic Technology Co.Ltd(300373) . In recent years, domestic small signal devices have gradually participated in the market supply system, and import substitution has been basically realized in some middle and low-end application scenarios; In the middle and high-end application scenarios, China’s leading enterprises gradually catch up with and surpass the technology, and the willingness of domestic substitution at the downstream demand side increases year by year. In the future, as China’s small signal device industry gradually breaks through the technical bottleneck of high-end products, the import substitution effect will further appear.
2. Power device field
From the perspective of industrial competition, the high-end products manufacturers of global power devices are mainly concentrated in Europe, America, Japan and Taiwan, China. The top ten power device manufacturers occupy 60% of the world’s market share, and all of them are overseas manufacturers. China’s power device industry started late, but the market scale grew rapidly. Due to the long-term constraints of enterprise scale and technical level, the overall scale effect and cluster effect have not been formed in the field of high-end power devices. At present, China’s power device industry is concentrated in the processing, manufacturing and sealing and testing parts, and the industrial structure is mainly medium and low-end. International manufacturers still occupy the absolute dominant position in China’s high value-added power device market. For example, more than 50% of the income of international first-line brand manufacturer darco comes from China, There is huge room for import substitution. Compared with foreign manufacturers, Chinese factories
