IT Home plans 3 billion yuan semiconductor wafer project
IT Home plans to invest approximately 3 billion yuan (around $410 million) in a new 12-inch semiconductor silicon wafer production facility in Jiaxing, China.
Chinese technology company IT Home, officially Hangzhou Leap Research Microelectronics Co., Ltd., has announced plans for a significant investment in the semiconductor sector. The company intends to construct a new 12-inch semiconductor silicon wafer production facility in Jiaxing city, Zhejiang province.
The project's total investment is estimated at approximately 3 billion yuan (around $410 million), with 2.9 billion yuan designated for fixed asset investment. The new facility is projected to produce 200,000 units of 12-inch lightly doped substrate wafers and 120,000 units of 12-inch silicon epitaxial wafers per month. Upon reaching full production capacity, the facility is expected to generate an annual output value exceeding 1.3 billion yuan.
The construction period for the project is planned to span five years. The initiative will utilize existing facilities of IT Home's subsidiary, Jinruihong Microelectronics (Jiaxing) Co., Ltd., and will be managed by another subsidiary, Jinruihong Angxin Microelectronics (Jiaxing) Co., Ltd. The company states the project supports its strategy of focusing on high-value-added applications, including logic chips and power management integrated circuits.
IT Home has previously indicated a focus on high-end, differentiated products within its 12-inch silicon wafer offerings. The company confirms that its order book for silicon epitaxial wafers is currently robust, with average selling prices significantly higher than those for polished silicon wafers. The company's financial position, including its cash and cash equivalents and net cash flow from operating activities, is expected to support the project's funding, which will primarily rely on internal funds and self-raised capital.