①Multiple parties such as Yandong Micro, BOE Technology Group A, Yizhuang State-Owned Investment, etc., plan to jointly increase the capital of BEIDI Integrated by an amount reaching 19.99 billion yuan; ②The total investment of BEIDI Integrated's 12-inch integrated circuit production line project is as high as 33 billion yuan, and the construction content includes establishing a characteristic process platform ranging from 28nm to 55nm; ③The project will start within this year, equipment move-in will begin in the fourth quarter of 2025, and mass production will be achieved by the end of 2026.
On November 15th, a large wafer factory is about to be born in Beijing, as reported by the Science and Technology Innovation Board Daily.
Tonight (November 15th), Yandong Micro and BOE Technology Group A respectively announced that their subsidiaries will jointly increase the capital of Beijing Electronic Control Integrated Circuit Manufacturing Co., Ltd. (referred to as "BEIDI Integrated"), for investing in and constructing the 12-inch integrated circuit production line project. They will collaborate with multiple parties including Beijing Yizhuang Technology Co., Ltd., Beijing Zhongfa Assistance II Equity Investment Fund (referred to as "Zhongfa II Fund"), Beijing Yizhuang International Investment Development Co., Ltd. (referred to as "Yizhuang State-Owned Investment"), Beijing State-Owned Capital Operation Management Co., Ltd. (referred to as "Beijing State Capital Management"), Beijing National Chip Source Technology Co., Ltd. (referred to as "National Chip Source"), and others.
The announcement indicates that the joint increase in capital by the aforementioned parties for BEIDI Integrated will reach 19.99 billion yuan.
Established in October 2023, BEIDI Integrated was a wholly-owned subsidiary of Beijing Electronic Holdings Co., Ltd. (referred to as "Beijing Electronic Control") before the completion of the mentioned transaction.
After the transaction is completed, Yandong Micro's shareholding in BEIDI Integrated will be in the first place at 24.95%, followed by Yizhuang Technology at 20%, Yizhuang State-Owned Investment and Beijing State Capital Management each at 12.50%, BOE Technology Group A's subsidiary Tianjin BOE Technology Venture Capital and National Chip Source at 10%, and Beijing Electronic Control's direct shareholding will decrease to 0.05%.
After the capital increase, Yandong Micro plans to sign a concerted action agreement with Tianjin BOE Technology Venture Capital, Yizhuang State-Owned Investment, and Beijing State Capital Management to effectively control BEIDI Integrated.
The announcement shows that BEIDI Integrated will be the main body of the project construction to establish the BEIDI Integrated 12-inch integrated circuit production line project. The total investment of this project is as high as 33 billion yuan, with total capacity of 0.05 million pieces per month.
The construction content of the Beidou integrated project includes building a distinctive process platform such as 28nm-55nm HV/MS/RF-CMOS, PD/FD-SOI, with products aimed at areas like display drivers, analog-digital hybrid, embedded MCUs, etc.
In addition to the nearly 20 billion yuan to be injected this time, there is a difference of about 13 billion yuan between the total investment and capital stock of the above project, which the announcement states will be resolved through a loan from the project company Beidou Integrated.
In terms of specific contributions, Yandong Technology contributes 4.99 billion yuan in cash, Tianjin BOE Venture Capital contributes 2 billion yuan in cash, Yizhuang Technology contributes 4 billion yuan in cash, Zhongfa Second Fund contributes 2 billion yuan in cash, Yizhuang Guotou contributes 2.5 billion yuan in cash, Beijing Guan Investment contributes 2.5 billion yuan in cash, Guoxin Juyuan contributes 2 billion yuan in cash, Beijing Electronic Control contributes 0.01 billion yuan in cash.
The project will start within this year, equipment move-in by the fourth quarter of 2025, achieve mass production by the end of 2026, and full capacity by 2030.
Furthermore, the above project is expected to generate an annual revenue of 8.34 billion yuan in 2031; the average after-tax profit for the project calculation period (2027 to 2038) is 0.66 billion yuan, with a sales profit margin of 9.51%, and a total investment profit rate of 2.21%.
Regarding the future corporate governance of Beidou Integrated, the company's shareholders' meeting will have all shareholders exercise voting rights in proportion to their actual contributions, and the new board of directors will consist of 11 directors. Among them, Yandong Micro's subsidiary Yandong Technology will recommend 6 candidates, while the remaining shareholders will each appoint one, with the chairman recommended by Yandong Technology. In addition, the general manager and CFO of Beidou Integrated will be nominated by Yandong Technology.
According to a source close to Yandong Micro who spoke to a reporter from the "STAR Market Daily", as decided by Yandong Micro's board of directors, Beidou Integrated will be a subsidiary of Yandong Micro in the future and will also be an independent legal entity.
Yandong Micro stated in the announcement that it currently owns a 6-inch wafer production line (capacity of 0.065 million pieces/month), a 6-inch SiC wafer production line (capacity of 2000 pieces/month), an 8-inch wafer production line (process node 110nm, capacity of 0.05 million pieces/month), and a 12-inch wafer production line (under construction, process node 65nm, capacity of 0.04 million pieces/month), mainly serving six major areas including AIoT, new energy, automotive electronics, communications, ultra-high-definition displays, and special applications.
The announcement shows that the North Electronics Integration project will rely on the existing technology foundation of Yandong Micro, building a process technology platform through independent research and development and appropriate introduction, introducing 28nm-55nm baseline process IP, and forming independent characteristic IP on the basis of baseline IP through independent research and development of characteristic process platforms, and establishing support for the 12-inch integrated circuit production line.
Yandong Micro stated that through the construction of this project, it will achieve a better industrial layout of wafer production lines, promote the advancement of process technology capabilities to higher process nodes, effectively enhance the company's core competitiveness, and help achieve high-quality and sustainable development.
In addition, according to the announcement, based on Beijing Electronic Control's strategic positioning with 'chip screen' as the core, fully leveraging the demand drive of the display industry and the supply guarantee role of the equipment industry, and using JD.com and other IC markets as traction, with Yandong Micro's 8-inch/12-inch integrated circuit manufacturing capabilities as the foundation, supplemented by Naura Technology Group's equipment and process development capabilities, an integrated circuit industry ecosystem will be constructed.
Currently, the above-mentioned trade matters still require approval from the Beijing SASAC, and also need to be submitted for review by the listed company's shareholders' general meeting.
The Science and Technology Innovation Board Daily noted that in terms of team building, North Electronics Integration, relying on Beijing Electronic Control's talent advantages in the integrated circuit field, has already organized core management and technology teams through system-wide deployment, and is currently supplementing excellent talents globally. In October this year, North Electronics Integration has initiated campus recruitment at renowned universities such as Peking University, Tsinghua University, and Nankai University.
