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The first billion-level integrated circuit project in Hefei was officially mass-produced, and will reach 40,000 units/month after full production in 2020
On December 6, Hefei Jinghe Integrated Circuit Co., Ltd., the first 12-inch wafer foundry in Anhui Province and the city's first billion-yuan integrated circuit project, officially entered mass production. This milestone marks a significant step forward for the region’s semiconductor industry. The project is not only the first 12-inch integrated circuit production line in Anhui but also the country's first 12-inch wafer foundry focused on manufacturing panel-driven chips. It represents a new era of cross-strait collaboration.
The successful mass production of "Hefei" wafers signifies that the historical task of self-developing driver chips for display panels has been accomplished. Anhui has now completed one of the most challenging and critical tasks in the national blueprint for integrated circuit development. With full-scale operations expected to reach 40,000 wafers per month by 2020, this project is set to significantly boost local chip manufacturing capabilities.
Hefei Jinghe, a joint venture between Hefei Construction Investment Holdings and Taiwan Power Crystal Technology, was established with a total investment of 12.81 billion yuan. Construction began in October 2015 and was completed in June 2017. By mid-July, the first batch of wafers was successfully produced, and the factory is now operating at full capacity. By the end of this year, the monthly output will reach 3,000 units, with plans to scale up to 40,000 units by 2020. Once fully operational, the plant will produce 160,000 12-inch wafers monthly.
In 2020, China aims to achieve a 70% localization rate for panel-driven chips. These chips are essential components in daily life, from smartphones and computers to home appliances, medical devices, and even high-speed trains and aircraft. BOE’s successful establishment in Hefei helped break China’s long-standing “chip shortage,†addressing key challenges in the integration of display technology and chip manufacturing.
According to Li Xianghu, General Manager of Hefei Jinghe, China’s current IC self-sufficiency rate stands at around 14.4%. The company is working toward the goal of achieving a 70% self-sufficiency rate in integrated circuits by 2025 as outlined in the "Made in China 2025" initiative. With the completion of mass production, the localization rate for panel-driven chips is expected to hit 70% by 2020, supporting broader national goals.
Wang Wensong, deputy mayor of Hefei City, emphasized that the city has consistently pursued a strategy of "building a city through industry." Hefei has accelerated innovation and industrial upgrading, cultivating world-class advanced manufacturing clusters. The success of the Crystalline Project has filled market gaps, increased the localization of driver ICs, and contributed to the realization of "China's Core Hefei Manufacturing."
Looking ahead, during the "Thirteenth Five-Year Plan," Hefei aims to further develop its integrated circuit industry, enhance the "Hefei Core," "Hefei Production," and "Hefei Use" chains, and expand the design and manufacturing of memory chips, driver chips, and specialty chips. By 2020, the city hopes to exceed 50 billion yuan in output value, positioning its manufacturing and design sectors among the top five nationally. This progress underscores Hefei’s growing role in China’s semiconductor landscape and its ambition to become the "IC Capital" of the nation.