Source: e-company

Recently, the National Integrated Circuit Industry Investment Fund Phase III Co., Ltd. (hereinafter referred to as “National Big Fund Phase III”) was registered and established, with a registered capital of 344 billion yuan, which is larger than the previous two phases. In this context, on May 27, the A-share and Hong Kong-share semiconductor industry chains fully exploded, and concepts such as lithography machines, semiconductor materials, and advanced packaging were active. On the same day, the Bank of China, China Construction Bank, Agricultural Bank, and Postbank announced plans to invest in the third phase of the National Capital Fund.

The Securities Times · e Company reporter interviewed semiconductor industry insiders and learned that the third phase of the National Big Fund is expected to continue investing in the “stuck neck” links of the semiconductor industry chain, including large-scale manufacturing, equipment, materials, etc. In addition, key areas of artificial intelligence semiconductors such as the HBM industry are also expected to receive investment from the third phase of the National Big Fund.

Judging from the comparison of existing information, the third phase of the National Big Fund showed the four major characteristics of “changing the head”, “changing shareholders”, “long-term cycle”, and “project adjustment.”

Change coach

According to the National Enterprise Credit Information Publicity System, on May 24, the third phase of the National Enterprise Fund was established. The legal representative is Zhang Xin, with a registered capital of 344 billion yuan. The scope of business includes private equity investment fund management, venture capital fund management services, and the use of private equity funds to engage in activities such as equity investment, investment management, asset management, etc., and enterprise management consulting.

Furthermore, the legal representatives of the National Integrated Circuit Industry Investment Fund Co., Ltd. (“National Integrated Circuit Industry Investment Fund Phase I”) and the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (“National Integrated Circuit Fund Phase II”) have all been changed to Zhang Xin. Previously, they were Lou Yuguang.

A semiconductor investor told reporters that related personnel changes have been taking place for a long time, and Zhang Xin is from the Ministry of Industry and Information Technology. According to data, in February 2022, Zhang Xin went to Beijing's Shunyi District to investigate and guide the third-generation semiconductor industry as a first-level inspector of the Ministry of Industry and Information Technology, and had in-depth exchanges with companies such as the National Third-Generation Semiconductor Technology Innovation Center, the League of Nations Wanzhong, Ruineng Semiconductor, and Tianke Heda, on the development status, trends, difficulties faced by the third-generation semiconductor industry at home and abroad, and card blockages in the industry chain, policy and financial support suggestions.

Change shareholders

In addition to the change of legal representative, the main investment structure of the third phase of the National Big Fund has also undergone significant changes. Banks have been added as major shareholders, and local state-owned assets are concentrated in Beijing and Guangdong.

Among them,$CCB (00939.HK)$,$BANK OF CHINA (03988.HK)$,$ABC (01288.HK)$und$ICBC (01398.HK)$It will soon invest 21.5 billion yuan and hold 6.25% of the shares;$BANKCOMM (03328.HK)$It is planned to invest 20 billion yuan, accounting for 5.814%;$PSBC (01658.HK)$It is planned to invest 8 billion yuan, accounting for about 2.33%. Bank shareholders hold about 33% of the total shares, and the six banks mentioned above will invest a total of 114 billion yuan.

Local state-owned or related integrated circuit industry investments such as Zhejiang, Chongqing, Jiangsu, Anhui, Fujian, Wuhan, and Chengdu participated in the second phase of the National Big Fund; in comparison, in the third phase of the National Big Fund, apart from “old faces” such as the Ministry of Finance, CDF Finance, and Guosheng Group, central enterprises and local state-owned assets from Beijing and Guangdong became the “main forces” of the third phase of the National Big Fund.

Another notable change in the third phase of the National Big Fund is the drastic reduction in the number of industrial investment institutions and the scale of investment. Among them, China Mobile Capital Holdings Co., Ltd., a subsidiary of China Mobile, participated in the second phase of the National Capital Fund, with an investment amount of 10 billion yuan, accounting for about 4.9%; its investment in the third phase of the National Big Fund fell to about 5 billion yuan, accounting for 1.45%. China Unicom Capital, Telecom Group, China Electronics, Sanan Group, etc. did not appear among the shareholders investing in the third phase of the National Capital Fund.

However, shareholders of the third phase of the National Big Fund have also emerged as a “new face” of large central enterprises. China Resources Investment and Entrepreneurship (Tianjin) Co., Ltd., a subsidiary of China Resources Capital Management, will soon invest 5 billion yuan, accounting for 1.45%.

Long cycle

The integrated circuit industry is a capital-intensive industry that requires a large amount of long-term capital investment. The first two phases of the National Big Fund have been in existence for ten years, while the third phase of the newly established National Big Fund has been in existence for a longer period of 15 years, that is, from May 24, 2024 to May 23, 2039.

On May 27, the bank shareholders mentioned above announced their participation in the third phase of the National Capital Fund, and all indicated that it is expected that the registered capital will be paid within 10 years from the date the fund is registered and established.

According to industry investors, the country encourages “patient capital,” and now there is a guiding capital theory for local governments to invest in the integrated circuit industry that can achieve a 17-year cycle.

Reconcile the project

Bank shareholders explained in this announcement that the third phase of the National Capital Fund aims to guide social capital to increase multi-channel financing support for the integrated circuit industry and focus on investing in the entire integrated circuit industry chain.

The head of a listed semiconductor company previously funded by the National Big Fund told reporters that the third phase of the National Big Fund is expected to focus on the equipment, materials, and components of “large semiconductor manufacturers and stuck necks,” including wafer manufacturers involved in HBM (high bandwidth memory).

Some industry investors close to the major shareholders of the National Big Fund told reporters that according to our understanding, the current investment field for the third phase of the National Big Fund has not been fully finalized.

Earlier, institutional research reports showed that with the booming development of the digital economy and artificial intelligence, computing power chips and memory chips will become key nodes in the industrial chain. In addition to continuing support for semiconductor equipment and materials, the third phase of the National Big Fund may list high-value-added DRAM chips such as HBM as key investment targets.

HBM is an important field in the artificial intelligence industry, and it is also a shortcoming in the domestic semiconductor industry. At the beginning of March this year, Wuhan Xinxin Integrated Circuit Co., Ltd. provided external financing, released the “High-Bandwidth Storage Core Advanced Packaging Technology R&D and Production Line Construction” tender project, and recently disclosed the IPO Counseling and Filing Report at the Hubei Securities Regulatory Bureau.

Wang Haiwei, co-chief electronics analyst at Huajin Securities, told reporters that currently there are no companies in mainland China that can complete HBM foundry. Currently, they are still in the process from 0 to 1. In terms of the industrial chain, there are some companies that can participate in the global HBM supply chain, such as companies that make materials, consignment sales, and seal testing.

Overall, each phase of the National Fund has its own focus. Among them, the first phase focuses on manufacturing, focusing on downstream industry chain leaders; the second phase focuses on upstream fields such as semiconductor equipment materials, etc., focusing on equipment such as etching machines, film equipment, testing equipment, cleaning equipment, etc. The materials covered large silicon wafers, photoresists, mask plates, and electronic specialties.

editor/tolk