By Greg Gao

(JW Insights) Aug 22 -- China’s listed chip design and manufacturing company Silan(士兰微) managed to expand its monthly production of 12-inch IGBT/FRD wafers to 10,000 pieces and aims for full IGBT wafer fabrication capacity by May next year, its vice chairman and general manager Zheng Shaobo stated during the 2023 semi-annual performance briefing on August 21.

Chen Xiangdong, chairman of Silan, stated, “The company’s performance is directly related to the current market conditions. It is difficult to predict when the semiconductor market will fully recover. The competition in China’s chip market is extremely fierce. There should be opportunities for one or two large IDM companies to gradually dominate China’s high-end semiconductor market. Currently, Silan’s 6-inch and 8-inch wafer production lines are running at full capacity. At the same time, there is still some time for the 12-inch line to put into production, and it is expected to gradually achieve full capacity in the next 2-3 quarters.”

Chips for automotive applications usually have a high entry barrier. In the first half of 2023, Silan’s revenue from IGBT (including IGBT devices and PIMs) reached over RMB590 million($81 million), an increase of over 300% from the same period last year. The company’s electric vehicle main motor drive modules based on the self-developed V-generation IGBT and FRD chips have been supplied in large quantities to multiple domestic and international automakers, including BYD, Geely, Leapmotor, and industrial automation components provider Inovance. 

Silan’s IGBT and MOSFET devices for automobiles have also achieved mass shipments. The company is accelerating the production capacity construction for automotive IGBT chips, SiC-MOSFET chips, and power inverter modules (PIMs).

Zheng Shaobo said, “Currently, in the EV main motor driver modules market, Silan dominated the MOS and IGBT devices. These are sold through Tier 1 suppliers. As for PIMs, the customers are BYD, Leapmotor, and Geely. Other potential customers include GAC, Changan, Dongfeng, SAIC, and Wuling. Overall, Silan’s IGBT market share in the EV main motor driver market is still at the forefront. “

Regarding changes in the company’s stock price, Silan stated that the semiconductor industry has experienced a cycle of ups and downs in recent years. Benefiting from the rapid growth of the semiconductor industry in 2021, timely capacity increase, and continuous adjustments to the product portfolio, the company reached its historical peak in performance in 2021 and also achieved a recent peak in stock price. 

As the semiconductor industry entered an adjustment period, the net profit attributable to the parent company’s shareholders in the first half of 2022 and 2023 did not meet expectations. However, the company's revenue maintained growth in 2022 and the first half of 2023. 

Founded in 1997, Silan was headquartered in Hangzhou, eastern China’s Zhejiang Province, and went listed on the Shanghai Stock Exchange in 2003. It was one of the first IC companies listed in China.

Silan’s products cover many consumer electronics sectors with its technologies leading in many fields in China, including energy-saving power chips, MEMS sensors, LED lighting and screen display, high-voltage intelligent power module, third-generation power semiconductor devices, and digital audio and video, according to its official website.