Reply report on the second round examination and inquiry letter of Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects
(Revised Version)
Sponsor (lead underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
April, 2002
Shanghai Stock Exchange:
According to the requirements of the second round examination and inquiry letter of Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects (hereinafter referred to as the “inquiry letter”) issued by your exchange on March 3, 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, Together with the issuer and the issuer’s lawyer Guohao law firm (Nanjing) (hereinafter referred to as “Guohao law firm”, “issuer’s lawyer”, “lawyer”) and the reporting accountant Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin accountant”, “reporting accountant”, “accountant”) and other relevant parties, in line with the principles of diligence, honesty and trustworthiness, we have a serious discussion on the issues raised in the inquiry letter one by one Check and implement, and reply and explain 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 application).
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:
The questions listed in the inquiry letter are in bold (BOLD)
Reply to the questions listed in the inquiry letter
The contents listed in the original prospectus are in Song typeface
Amendments and supplements to the prospectus (in BOLD)
This revision is in italics (BOLD)
catalogue
interpretation…… 41. About the industrialization project of vehicle specification semiconductor devices 52. About the cash flow statement 303. Reply to EIA 36. General opinions of the sponsor forty-five
interpretation
Constant current means that the current in the line does not change with the voltage applied at both ends of the line, and the current is kept constant
Jesd47 refers to a standard on device reliability of JEDEC Solid State Technology Association (an international semiconductor industry standardization organization)
Pat / SBL / SYL is a kind of statistical method used to detect the abnormal characteristics of semiconductor components, which is used to eliminate abnormal components from the products specified by the test technology. Pat is the component average test; SBL refers to the limit of statistical box and SYL refers to the limit of statistical yield.
Chemical vapor deposition (CVD) refers to the synthesis of coatings or nano materials by the reaction of chemical gas or steam on the substrate surface, including a wide range of insulating materials, most metal materials and metal alloy materials.
Forward voltage drop refers to the forward voltage drop of the diode under the specified forward current, which is the lowest forward voltage that the diode can turn on.
Planar chip refers to a chip structure in which the PN junction interface extends to the upper surface
Relay refers to an element that uses small current to control large current or low voltage to control high voltage
Micro electro mechanical systems (MEMS) is a mechanical system made of industrial technology that integrates microelectronic technology and mechanical engineering. The size of these systems is generally between microns and millimeters.
Using different doping processes and diffusion, the p-type semiconductor and n-type semiconductor pn junction are fabricated on the same semiconductor (usually silicon or germanium) substrate, and the space charge region is formed at their interface, which is called PN junction
Intelligent power module (IPM) is the abbreviation of intelligent power module. It is an advanced IPM package refers to the power switching device. The IPM package integrates logic, control, detection and protection circuits, which is convenient to use. It not only reduces the volume and development time of the system, but also greatly enhances the reliability of the system.
Bonding wire technology refers to the technology that uses metal wires (copper, gold, aluminum, etc.) to connect the bonding pads and external pins on the chip through heat, ultrasound and pressure
Jumper welding technology refers to the technology of using a solid copper bridge welded to solder to realize the connection between chip and pin
This reply report refers to the reply report on the second round of examination and inquiry letter of Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects
Note 1: unless otherwise specified, the abbreviation of this reply report has the same meaning as the abbreviation in the prospectus for Changzhou Galaxy Century Microelectronics Co.Ltd(688689) issuing convertible corporate bonds to unspecified objects. Note 2: in this reply report, if the total number and the mantissa of the sum of the itemized values are inconsistent, or the mantissa after the decimal point is different from the original data, it is formed by the difference of the exact digits or rounding.
1. About the industrialization project of vehicle specification semiconductor devices
According to the first round of replies, (1) foreign manufacturers occupy a leading position in the field of vehicle specification semiconductor. In 2020, the top ten vehicle specification semiconductor manufacturers in the world are all foreign manufacturers, and the localization rate of vehicle specification semiconductor devices is low. As of February 22, 2022, the amount of orders in hand from the company’s automobile customers was 323192 million yuan; (2) The estimated unit price of the small signal devices mainly produced in the project is basically consistent with the historical sales, and the estimated unit price of power devices is higher than the historical sales data; (3) In the future, the market competition pattern of China’s vehicle specification semiconductor devices will transition from monopoly competition to full competition.
The issuer is requested to explain: (1) in combination with the relevant industry standards of vehicle specification level semiconductor devices, explain the special requirements of vehicle specification level semiconductor products in terms of product performance compared with products in other fields, the specific implementation methods of relevant requirements in terms of raw materials and production processes in all links, as well as the corresponding relationship with the issuer’s existing, under research and related technologies of the raised investment project, and whether the issuer has the technical basis for implementing the raised investment project; (2) The differences between the product types and application scenarios involved in this raised investment project and foreign vehicle specification semiconductor manufacturers, the advantages and disadvantages of relevant technologies compared with foreign manufacturers, whether there are obstacles in order development, and give corresponding risk tips; (3) Whether the specific calculation process of unit price and capacity of vehicle gauge small signal devices and power devices produced by the raised investment project fully considers the impact of factors such as intensified market competition, increased supply and technological renewal on price and capacity in the future, and whether the relevant prediction results are cautious and reasonable.
The reporting accountant is requested to verify the above matters and express clear opinions.
[description of issuer]
1、 In combination with relevant industry standards of vehicle specification level semiconductor devices, explain the special requirements of vehicle specification level semiconductor products in terms of product performance compared with products in other fields, the specific implementation methods of relevant requirements in terms of raw materials, production processes in all links, and the corresponding relationship with the issuer’s existing, under research and related technologies of the raised investment project, and whether the issuer has the technical basis for implementing the raised investment project;
(I) in combination with relevant industry standards of vehicle specification level semiconductor devices, explain the special requirements of vehicle specification level semiconductor products in terms of product performance compared with products in other fields
According to different application scenarios and technical parameter requirements, semiconductor discrete devices can be divided into four levels: consumer level, industrial level, vehicle specification level and military level. The requirements for product performance at each level are as follows:
Consumer grade, industrial grade, vehicle specification grade, military grade
Consumer grade, industrial grade, vehicle specification grade, military grade
Application mobile phone, PC and other industrial control automotive electronic military applications
Temperature: 0-70 ℃ – 40 ℃ – 85 ℃ – 40 ℃ – 150 ℃ – 55 ℃ – 150 ℃
Low humidity 0-100% 0-100% according to the environment
Vibration / shock low high high high
Service life 1-3 years 5-10 years 15 years ＞ 15 years
Failure rate ＜ 3% ＜ 1% 0
Test standard: jesd47, etc., aec-q100, mil-std-883, etc
The system has low cost and high cost
Special requirements: waterproof, anti-corrosion, moisture-proof reinforced packaging, high and low reinforced packaging, high and low temperature isothermal and heat dissipation, etc
Low reliability and high reliability
Compared with the special requirements of automotive semiconductor devices, the performance of automotive semiconductor devices first comes from the special requirements of automotive semiconductor devices. First, cars are high-grade durable goods, with a long design life cycle, generally 15 years or 200000 kilometers. Compared with consumer goods and general industrial products, devices are required to work stably for a longer time. Second, automobile is a means of transportation involving personal safety, which needs to adapt to various working environments, especially in extremely harsh or abnormal environments such as high temperature, severe cold, severe storm and rain. Therefore, the requirements for the temperature and humidity range, anti vibration, impact or electromagnetic interference of the device are higher than those of consumer and industrial products. Third, due to the continuous improvement of the degree of integration, intelligence and electronization of modern vehicles, the requirements for the failure rate of each component of the system are increased accordingly. For example, there are hidden dangers in the core devices, which may even lead to large-scale recall measures. At present, the market requires vehicle specification semiconductor devices to achieve zero failure efficiency, and foreign leading enterprises have been able to achieve a failure rate of 5% per million, which is much higher than that of consumer and industrial products.
Secondly, vehicle specification semiconductor devices have different requirements for product reliability. Consumer grade and industrial grade semiconductor products also have sub item reliability test requirements, but they are generally non mandatory; The reliability test requirements of vehicle specification products are mandatory, and the test standards are more extreme. Take aec-q101 series of standards for vehicle specification grade semiconductor discrete device products formulated by the automotive electronics Committee as an example. Compared with consumer grade and industrial grade discrete device products, this standard has the following characteristics:
1. There are more items. Aecq-101 certification has more than 25 test items for products, while other standards have no mandatory test requirements.
2. The test cycle is long and the judgment standard is strict. Aecq certification selects the longest test time and the strictest judgment standard, while other standards emphasize the test method, and the test judgment provides the choice of different strictness,
It is not required to cover all items.
3. There are many test batches. Aecq requires at least three batches of samples to pass before they are considered to pass, while the requirements for test batches of other standards are relatively loose.
4. In addition to the product performance and reliability test items, the AEC standard also requires the structural analysis of the samples before and after the test. Even if the parameters change within the standard range, they cannot pass in case of delamination, defect and other abnormalities.
5. AEC standard also puts forward specific requirements for test technology, copper wire process, packaging process control and other details, which are not available in consumer and industrial product standards.
Finally, vehicle specification semiconductor device products have high requirements in terms of life, fault tolerance and reliability
