On the evening of November 11, Zhaoyi Innovation released an announcement announcing that it has cooperated with Hefei Industrial Investment Holding (Group) Co., Ltd. (hereinafter referred to as “Hefei Industrial Investment”) and Ruili Integrated Circuit Co., Ltd. (hereinafter referred to as “Ruili Integration”). Jointly signed the Supplementary Agreement to the “Convertible Debt Investment Agreement” to provide a principal amount of 3 to Hefei Changxin Integrated Circuit Co., Ltd. Supplementary agreement on the issue of convertible loans of 100 million yuan.
According to the supplementary agreement, Zhaoyi Innovation plans to invest 300 million yuan to cooperate with Changxin Integration, Hefei Shixi Power Collection Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as “Shixi Power Collection”), and National Integrated Circuit Industry Investment Fund II Co., Ltd. (hereinafter referred to as “Big Fund II”), Anhui Sanchong Yichuang Industrial Development Fund Co., Ltd. (hereinafter referred to as “Sanchong Yichuang”) and other investors signed the “About Ruili Integrated Circuit Co., Ltd.” The Capital Increase Agreement (hereinafter referred to as the “Capital Increase Agreement”) and the Shareholders’ Agreement on Ruili Integrated Circuit Co., Ltd. (hereinafter referred to as the “Shareholders Agreement”), and jointly participate in the capital increase of Ruili Integrated Circuit to complete the “Convertible Debt Investment”. The share conversion investment matters stipulated in the Agreement.
Before the capital increase, the total registered capital of Ruili Integration was 18.9 billion yuan, and the actual paid-in registered capital was 18.9 billion yuan. Among them, Shixi Jidian invested 13.044 billion yuan, with a shareholding ratio of 69.01%; Changxin Integration invested 5.856 billion yuan, with a shareholding ratio of 30.99%.
After the completion of this capital increase, Zhaoyi Innovation will hold about 0.85% of the equity of Ruili Integration. According to the information on the capital increase of Ruili Integration by other institutions exposed in the Zhaoyi Innovation announcement, in addition to Zhaoyi Innovation, the second phase of the Big Fund and Anhui Sanzhong Yichuang Fund contributed 4.76 billion yuan respectively to participate in the capital increase of Ruili Integration. , with a shareholding ratio of 14.08%. In addition, Changxin Integration also increased its capital by 808 million yuan, with a shareholding ratio of 19.72%; Hefei Jixin Enterprise Management Partnership (Limited Partnership) invested about 476 million yuan, with a shareholding ratio of 1.41%; other “follow-up investors” The investment is about 3.808 billion yuan, and the shareholding ratio is 11.27%.
In general, for this round of capital increase alone, Ruili Integration has completed a total of about 14.899 billion yuan in capital increase. After the capital increase is completed, the total investment of shareholders obtained by Ruili Integration has accumulated to 33.799 billion yuan!
It is understood that Ruili Integration is mainly engaged in the production, research and development, design and sales of integrated circuits and related products. The domestic DRAM manufacturer Changxin Storage Technology Co., Ltd. (hereinafter referred to as “Changxin Storage”) is the only wholly-owned subsidiary of Ruili Integrated. At present, Changxin Storage is also the only domestic DRAM memory manufacturer mass-produced in China. Obviously, investors such as the second phase of the big fund and Zhaoyi Innovation have increased their capital by nearly 15 billion yuan, which will further accelerate the development of domestic DRAM.
It is worth mentioning that at present, Zhu Yiming, chairman of Zhaoyi Innovation, is also the chairman of Changxin Storage. At the same time, Mr. Zhu Yiming controls Hefei Shixi Changxin Enterprise Management Partnership (Limited Partnership) (ie, the executive partner of Shixi Jidian, hereinafter referred to as “Shixi Changxin”). Before this capital increase, Shixi Jidian held 69.01% of the target company Ruili Integration.
According to the announcement, within the 12 months before this announcement, the value of DRAM products purchased by Zhaoyi Innovation from Changxin Storage was about 179.5558 million yuan, and the value of the joint product development platform of the two parties was about 19.6668 million yuan.
Changxin Storage will surpass Nanya Technology in the fourth quarter of next year, and 17nm memory will come out next year
According to the global DRAM memory chip market data released by TrendForce in the second quarter of 2020, the top three DRAM manufacturers, Samsung, SK Hynix and Micron, account for 94.6% of the global market. The fourth place is Nanya Technology, with a market share of only 3.2%, and the share of other manufacturers is less than 1%.
Obviously, in the DRAM memory chip market, the three leading manufacturers have formed a strong monopoly position, leaving very little space for other manufacturers. However, under the efforts of domestic DRAM chip manufacturers, relying on the huge domestic market demand, the market share of domestic DRAM chips is also rapidly increasing.
At the MTS2021 Storage Industry Trends Summit hosted by TrendForce on November 12, TrendForce announced the estimated data on wafer production of global memory manufacturers in 2020-2021.
According to the data, since the successful mass production of Changxin Storage’s DRAM chips in the fourth quarter of last year, its wafer input volume has continued to grow. With the further expansion of its DRAM products in the client, its production capacity has also continued to expand. By the fourth quarter of this year, its production volume has rapidly increased to 45,000 pieces/month. According to TrendForce’s forecast, by the fourth quarter of 2021, Changxin Storage’s film production volume will reach 85,000 pieces/month, which will successfully surpass Nanya Technology (71,000 pieces/month), which is currently ranked fourth, and become second only to Samsung, SK Hynix and Micron are the world’s fourth largest DRAM chip manufacturers.
Of course, the so-called fourth place does not actually make much sense, because there is a huge gap compared with the amount of the top three. Even the third-ranked Micron, its film production volume in the fourth quarter of next year is as high as 355,000 pieces/month, which is about 4.18 times the projected film production volume of Changxin Storage’s 85,000 pieces/month. Such a huge gap is not something that can be caught up in the short term. In addition, in terms of DRAM technology, there is also a large gap between Changxin Storage and the top three manufacturers.
According to the data, Changxin is currently mass-producing DDR4/LPDDR4/LPDDR4X chips with a 19nm process, which has been adopted by storage brand manufacturers such as ADATA and Longsys FORESEE. However, in terms of DRAM technology, Changxin Storage is 2-3 years behind the technology of first-tier DRAM manufacturers such as Samsung, so the rapid improvement of the technical level is also the key for Changxin Storage to gain a firm foothold in the DRAM market.
According to the “Work Plan for Unveiling Products in Key Fields and Key Technology Tackling Tasks” released by Anhui Province in early July this year, it is hoped that some key technical bottlenecks will be solved within 2-3 years. Among them, in terms of memory technology, it is required to promote low power consumption. The development of high-speed LPDDR5 DRAM products should meet the independent and controllable needs of DRAM memory chips for mid-to-high-end mobile, tablet and consumer products, develop advanced low-power high-speed LPDDR5 products and realize industrialization, relying on DRAM 17nm and below technology, tackling high-speed interfaces Technology, Bank Group architecture design technology, low-power power supply (voltage) technology, on-chip error correction coding (On-Die ECC) technology, to complete the development of low-power and high-speed LPDDR5 DRAM products.
At present, the only domestic manufacturer of DRAM memory chips that has achieved mass production in China is Changxin Storage, and Changxin Storage is also an enterprise located in Hefei, the capital of Anhui Province. Obviously, the memory technology research requirements proposed in this document are exactly the same It is proposed for Changxin Storage. In addition, according to previous plans, Changxin Storage will complete the technology research and development of 17nm DRAM in 2021.
The previously exposed roadmap of Changxin Storage also shows that Changxin Storage will launch DDR4/LPDDR4x and DDR5/LPDDR5 based on 10G3 process, and will also launch DDR5/LPDDR5 and GDDR6 based on 10G5 process. The 10G3 process here should refer to the 17nm process.