Recently, Huatian Technology released the Feasibility Report on the Use of Funds Raised by Non-public Issuance of A Shares (Revised Draft). In the report, Huatian stated that in order to further enhance the comprehensive strength of Tianshui Huatian Technology Co., Ltd. (hereinafter referred to as the “Company”), seize development opportunities, and realize the company’s development strategy, the total amount of funds raised by this non-public offering of shares will not be planned. Over RMB 5.1 billion, the net proceeds after deducting issuance expenses are planned to be used for the following projects:
According to the report, the integrated circuit packaging and testing industry is one of the pillar industries of my country’s integrated circuit industry. In recent years, benefiting from the strong support of the state and the promotion of market demand growth, the technical level has continued to improve, and the market size has been showing a steady growth trend. According to the “National Integrated Circuit Industry Development Promotion Outline” and “Made in China 2025” issued by the state, by 2020, the gap between the integrated circuit industry and the international advanced level will gradually narrow, and the average annual growth rate of sales revenue in the whole industry will exceed 20%. The sustainable development capability has been greatly enhanced. The integrated circuit design technology in key fields such as mobile smart terminals, network communications, cloud computing, Internet of Things, and big data has reached the international leading level. The industrial ecosystem has been initially formed. The testing technology has reached the international leading level; vigorously promote the merger and reorganization of domestic packaging and testing enterprises to improve the industrial concentration; adapt to the evolution and upgrading needs of integrated circuit design and manufacturing process nodes, develop chip-level packaging (CSP), wafer-level packaging (WLP), The development and industrialization of advanced packaging and testing technologies such as through-silicon via packaging (TSV) and 3D packaging, improving the level of advanced packaging and testing technologies such as CSP, WLP, TSV, and 3D packaging, and expanding the scale; The policy target of raising the self-sufficiency rate of the domestic circuit market to 70%.
The report emphasized that in order to meet the development and market demand of the IC packaging and testing industry, the company must continuously implement technological progress and industrial upgrading, and improve the scale of advanced IC packaging and testing products and the level of process technology, in order to further improve the company’s core competition in the domestic and foreign markets. force, enabling the company to achieve greater development in the fierce market competition. The products of this fundraising project cover MCM (MCP), TSV, FC, SiP, WLCSP, Bumping, BGA, LGA and other series of products, which are mainstream integrated circuit packaging products encouraged and supported by the state, in line with the development trend of industry technology.
The report further pointed out that the products of this fundraising project are mainly used in computers, smart phones, tablet computers, multimedia, detection controllers, cameras, automotive electronics, high-definition TVs and other fields, and are in line with the consumer and communication fields, as well as memory, radio frequency and other fields. This kind of emerging industry’s demand for integrated circuit packaging and testing products is multi-functional, multi-chip, high-performance, high-reliability, portable, and low-cost.
In order to seize market opportunities and win development opportunities, the company needs to expand the existing packaging scale and improve the existing technology level. Therefore, it is planned to expand the production scale, improve the production process and improve the technical level through the construction of this fundraising project. , Optimize product structure. At the same time, the IC packaging and testing industry is an industry with relatively obvious economies of scale. From the perspective of the development path of the world IC industry and the company’s future development strategy, it is only necessary to continuously expand the production capacity of advanced IC packaging and testing, improve the level of process technology, and expand products. Only in the application field can the company increase its market share in the global integrated circuit packaging and testing market, consolidate and improve its market position, and thus improve and drive the concentration of domestic packaging and testing products in the global semiconductor industry and its leading position in the industry.
For Huatian, the company has independently developed multi-chips that have reached the international advanced or domestic leading level by undertaking the National Science and Technology Major Project 02 Project, the Integrated Circuit Industry Research and Development Project, and Gansu Province/Jiangsu Province’s scientific and technological research projects. Packaging (MCP) technology, multi-chip stacking (3D) packaging technology, thin high-density integrated circuit technology, integrated circuit packaging anti-separation layer technology, 16nm wafer-level bump technology, C2W and TSV-based surface acoustic filter packaging technology, etc. , realized the mass production introduction of a series of packaging and testing products such as various processors, memory, radio frequency baseband, fingerprint identification, etc., forming a certain production capacity and competitive advantages in technology and scale, and through the construction of this fundraising project, will Further enhance the company’s advanced packaging and testing level and production scale, improve production efficiency and product quality, enhance the company’s profitability, and promote the rapid development of the company.
First look at the scale-up project of integrated circuit multi-chip packaging. Huatian said that the total investment of the project is 1,158,000,000 yuan, including 1,128,011,500 yuan for plant construction and equipment purchase, and 29,988,500 yuan for initial working capital. After the project is completed, it will form an annual production capacity of 1.8 billion MCM (MCP) series integrated circuit packaging and testing products.
Next, look at the scale-up project of high-density system-level integrated circuit packaging and testing. According to Huatian, the total investment of this project is 1,150,380,000 yuan, of which, 1,114,831,700 yuan is invested in equipment purchase, and 35,548,300 yuan is the initial working capital. After the project is completed and put into production, it will form an annual production capacity of 1.5 billion SiP series integrated circuit packaging and testing products.
Look at the TSV and FC integrated circuit packaging and testing industrialization projects. Huatian pointed out that the total investment of this project is 983.200 million yuan, of which, 963.1458 million yuan is invested in equipment purchase, and 20.0542 million yuan is the initial working capital. After the project is completed and put into production, it will have an annual production capacity of 336,000 wafer-level integrated circuit packaging and testing products and 480 million FC series products.
Finally, look at the storage and RF IC packaging and testing industrialization projects. Huatian plans to invest 1,506,400,000 yuan in this project, including 1,464,575,900 yuan for equipment purchase, and 41,824,100 yuan for initial working capital. After the project is completed and put into production, it will form an annual production capacity of 1.3 billion BGA and LGA series integrated circuit packaging and testing products.
Huatian emphasized that after the implementation of the investment project with the raised funds, the company will further expand the production capacity of advanced packaging and testing, and improve the process and technical level in the field of advanced packaging and testing of integrated circuits, which will help consolidate and enhance the company’s position in the industry and promote The company’s sustained and rapid development.
After the completion of this issuance, the company’s net assets and total assets will increase accordingly, the company’s capital scale will be expanded, the capital structure will be further optimized, and the company’s development strength will be enhanced. At the same time, the investment projects with the funds raised from this issuance have broad market prospects, and the implementation of the raised investment projects will become a new profit growth point for the company. With the improvement of production capacity, the enhancement of technical strength and the strengthening of competitive advantages, the company’s operating scale and profitability will be further improved.
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