Youyan Silicon Plans to Invest in Large-Size Semiconductor Silicon Monocrystal Project

Securities Times Reporter Zhao Liyun

On the evening of March 19, Youyan Silicon (688432) announced that the company plans to establish a wholly-owned subsidiary, Guojing Semiconductor Materials (Baotou) Co., Ltd., and use it as the main entity to invest in the new “Large-Size Semiconductor Silicon Single Crystal Base Construction Project,” with a total planned investment of 400 million yuan.

According to the disclosure, the scope of business for the proposed subsidiary includes the manufacturing of silicon single crystals, silicon wafers, and other electronic specialized materials. The large-size semiconductor silicon single crystal base construction project plans to build approximately 50,000 square meters of single crystal factory buildings. The factory will have 140 single crystal furnaces, capable of producing over 1,000 tons of single crystal silicon for integrated circuit materials and etching equipment annually. The project is expected to reach operational readiness by December 2027.

In 2022, Youyan Silicon raised a total of 1.855 billion yuan through an initial public offering, with an oversubscription amount of 664 million yuan, of which 469 million yuan has already been used. For this large-size semiconductor silicon single crystal base construction project, the company plans to use 195 million yuan of oversubscription funds and 205 million yuan of self-owned funds.

Since its establishment, Youyan Silicon has focused on the research, production, and sales of semiconductor silicon materials, making it one of the earliest domestic companies engaged in R&D and industrialization of semiconductor silicon materials. By breaking through and optimizing multiple key technologies, the company has built its own technological barriers. To date, the company has obtained multiple patents related to silicon wafer and semiconductor component manufacturing processes, forming a core technology system with independent intellectual property rights, which provides strong support for the smooth implementation of the project.

Regarding the construction of the large-size semiconductor silicon single crystal base, Youyan Silicon stated that market demand for semiconductor products continues to rise, especially the rapid growth in demand for 8/12-inch large-size silicon wafers. Meanwhile, as etching processes become increasingly important and advanced in chip manufacturing, the technological iteration speed of materials used as core components in etching reactions is accelerating, and market demand continues to expand. The company plans to expand production of 8-inch wafers and components by building a single crystal manufacturing base, further enhancing its supply capacity and consolidating and increasing its market share and profitability.

Youyan Silicon aims to become a world-class semiconductor enterprise. Currently, the industry scale is still in the catching-up stage. To achieve this, the company needs to gradually increase capacity in phases, reasonably expanding the production of 8-inch wafers and semiconductor components based on market demand. The existing single crystal factory cannot meet the needs for capacity expansion. The project site is located in Baotou, Inner Mongolia, which can fully utilize local electricity cost advantages, improve product competitiveness, and enhance the company’s profitability. Implementing this project will help promote the large-scale development of the company’s semiconductor wafers, lay a foundation for emerging businesses such as quartz crucibles and polycrystalline ingots during the “14th Five-Year Plan” period, and strengthen overall competitiveness and industry influence, thereby steadily advancing the company’s development strategy.

(Edited by: Wang Zhiqiang HF013)

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