Beijing's largest investment and financing this year - a total of 19.99 billion yuan, flowing into the semiconductor industry.
The semiconductor manufacturer will use this financing, combined with loans, totaling 33 billion yuan, to build a new 12-inch wafer production line in Yizhuang, Beijing.

With an investment of 33 billion yuan, a new wafer production line lands in Yizhuang

Recent news has revealed the largest investment and financing in Beijing's semiconductor sector since 2024.

Beijing Electronic Control IC Manufacturing Co., Ltd. (BJECC) has secured a total capital increase of 19.99 billion yuan from investors such as BOE, Beijing Yan Dong Microelectronics, and Yizhuang Technology, among others.

BJECC will use this funding, combined with loans, to raise a total of 33 billion yuan to build a new 12-inch wafer production line using 28-nanometer to 55-nanometer technology in Yizhuang, Beijing.

The project has a construction investment of 31.5 billion yuan and a working capital of 1.5 billion yuan. Construction is scheduled to begin in 2024, with equipment installation in the fourth quarter of 2025, mass production by the end of 2026, and full production capacity by 2030.

Details of BJECC's 12-inch Integrated Circuit Production Line Project

A Star-Studded Lineup Leads to Nearly 20 Billion Yuan in Financing

This capital increase was jointly conducted by Beijing Yan Dong Microelectronics and BOE A, along with several Beijing state-owned enterprises, including Yizhuang Technology, Zhongfa Fund, Yizhuang State Investment, Beijing State Management, and Guoxin Juyuan.

Multiple parties plan to jointly increase their investment in BJECC, with a scale reaching 19.99 billion yuan.

Among them, Beijing Yan Dong Microelectronics made the largest contribution, investing 4.99 billion yuan in cash to BJECC.

Beijing Yan Dong Microelectronics, previously known as the 878 Factory (State-owned Dongguang Electric Factory) founded in 1968, is China's first specialized integrated circuit factory, renowned alongside the "Shanghai Radio Factory 19" as the "Northern Hegemon" and "Southern Hegemon." After multiple reforms, the 878 Factory evolved into today's Beijing Yan Dong Microelectronics, a seasoned player in the domestic wafer manufacturing industry with extensive experience in chip design, manufacturing, and packaging.

Yizhuang, Beijing, is equally impressive - Yizhuang Technology and Yizhuang State Investment contributed a combined 6.5 billion yuan, and BJECC's production line project will also be located in Yizhuang.

Additionally, Tianjin BOE Venture Capital invested 2 billion yuan in cash, Zhongfa Fund II invested 2 billion yuan in cash, Beijing State Management invested 2.5 billion yuan in cash, Guoxin Juyuan invested 2 billion yuan in cash, and Beijing Electronic Control invested 10 million yuan in cash.

According to business registration information, BJECC was established in October 2023 with a registered capital of 10 million yuan before the capital increase. After the capital increase, the registered capital reached 20 billion yuan.

Beijing Yan Dong Microelectronics announced that it has signed a concerted action agreement with Tianjin BOE, Yizhuang State Investment, and Beijing State Management. BJECC will become a subsidiary of Beijing Yan Dong Microelectronics in the future, with Beijing Yan Dong Microelectronics retaining actual control over BJECC.

Beijing Attracts Talents and Investments to Strengthen Its Semiconductor Cluster

China's integrated circuit industry has formed four major clusters: the Bohai Rim, Yangtze River Delta, Pearl River Delta, and central and western provinces.

The Bohai Rim region, centered in Beijing, encompasses the entire integrated circuit industry chain, including design, manufacturing, packaging and testing, equipment, and materials, holding significant strategic importance for the country.

In recent years, Beijing has gradually established integrated circuit industry clusters centered in Haidian, Yizhuang, and Shunyi. Among them, Yizhuang, an important component of the national economic development zone and Beijing Free Trade Zone, has an industrial scale exceeding 80 billion yuan, accounting for half of the city's total and gathering over 200 enterprises.

Since the introduction of SMIC's 12-inch wafer production line in 2002, Yizhuang, Beijing, has become a core region for China's integrated circuit industry, with an output value exceeding 40 billion yuan in the first half of 2024. It has gathered leading enterprises such as SMIC, Northern Microelectronics, Advantest Semiconductor, CETC Huazhuo Precision, Guowang Optics, Keyi Hongyuan, and Dongfang Jingyuan. The Majuqiao area of Yizhuang New City plans to invest 70 billion yuan to build an integrated circuit equipment and materials parts base covering 3,300 mu, aiming to strengthen Beijing's position in the global semiconductor industry.

Beijing is actively paving the way to attract semiconductor projects. As mentioned earlier, "Yizhuang Technology and Yizhuang State Investment jointly invested 6.5 billion yuan, successfully bringing BJECC's production line project to Yizhuang." This exemplifies Yizhuang's eagerness for talent, Beijing's favorable investment and financing environment, regional policy support, and agglomeration efficiency.

Such massive capital injections provide strong support for the integrated circuit industry in Beijing and nationwide, serving as an important supplement to the global semiconductor supply chain.

China's chip industry was once barren and weak but is gradually improving.

With popularity, implementation, and hot money flowing in, the development of Beijing's semiconductor industry is promising and worth anticipating.