Semiconductor Silicon Wafers
The frenzy of AI (Artificial Intelligence) computing power ultimately relies on a single silicon wafer.
HBM stacking and 3D NAND bonding—every iteration of these cutting-edge processes invisibly extends the "consumption chain" of silicon wafers. Under the same capacity, the silicon wafer consumption for HBM is three times that of traditional DRAM.
Monthly production and sales exceeding one million pieces, a half-year revenue growth of over 70%, and the intensive landing of billion-yuan investments... In the summer of 2026, domestic silicon wafer companies declared with a series of figures that domestic large silicon wafers are no longer just samples in laboratories, but tangible "rigid demands" in wafer fabs. More importantly, the tracks in this battle have been divided—some are deeply cultivating epitaxial wafers, some are betting on SOI (Silicon on Insulator), and some are expanding production with heavy investments.
Domestic 12-inch silicon wafers are accelerating, and the curtain of differentiated competition has also been drawn.
I. Xi'an Yicai Materials: Production and Sales Cross the Million-Piece Threshold, 6.5 Billion RMB Capital Increase Boosts High-End Capacity Construction
As a core domestic manufacturer of 12-inch silicon wafers, Xi'an Yicai Materials Materials has recently seen both the realization of scaled production capacity and the implementation of capacity expansion actions, continuously consolidating its leading industry advantage.
On August 8, Xi'an Yicai Materials Materials officially announced that, together with multiple strategic investors, it completed a 6.5 billion RMB capital increase in Wuhan YSWE Materials. The funds from this capital increase will be entirely dedicated to the construction of the Wuhan 12-inch silicon wafer base, focusing on the layout of high-end silicon wafer capacity to precisely match the rigid demand for high-end silicon wafers in the domestic memory and logic chip fields.
Earlier, in late July, Xi'an Yicai Materials Materials officially disclosed key operational data, revealing that the company's monthly production and sales scale of 12-inch electronic-grade silicon wafers successfully exceeded one million pieces. This marks the company's official entry into the million-piece scale supply stage, achieving a qualitative improvement in capacity utilization rate and market-oriented delivery capabilities.
In terms of capacity layout, the pace of capacity expansion is advancing steadily. The third factory in Wuhan completed the capping of its main structure in May this year, with supporting construction in the factory area proceeding in an orderly manner. It is planned to start equipment relocation in October, laying a solid foundation for subsequent mass production. Once all three production bases in Xi'an and Wuhan reach full capacity, the company's long-term monthly capacity of 12-inch silicon wafers will reach 1.8 million pieces, further consolidating its domestic capacity advantage in large-size silicon wafers.
II. Lion Micro: Bright Performance in Semi-Annual Report, 12-Inch Epitaxial Wafers Become Core Growth Engine
On the evening of August 7, Lion Micro officially released its 2026 semi-annual report. The financial data clearly demonstrates the structural upgrading achievements of the company's 12-inch silicon wafer business, with significant trends in high-end product substitution and improved profitability.
The report shows that semiconductor silicon wafers have always been the company's largest source of revenue. In the first half of 2026, the company's semiconductor silicon wafer business achieved a main business revenue of 1,582.2697 million RMB (including 147.2558 million RMB in sales to the parent company), a year-on-year increase of 25.68%. The revenue scale expanded steadily, and the overall operating condition achieved a substantial turnaround. During the reporting period, both the net profit attributable to the parent company and the net profit after deducting non-recurring gains and losses achieved a year-on-year turnaround from loss to profit, with the net profit attributable to the parent company reaching 83.9726 million RMB. The core driving force is the significant improvement in the profitability of the semiconductor silicon wafer segment.
As the company's core strategic segment, 12-inch silicon wafers have fully released their growth momentum. In the first half of 2026, the company's 12-inch silicon wafers generated a revenue of 612.5910 million RMB, a substantial year-on-year increase of 74.02%, performing outstandingly in the industry recovery. The upgrading of product structure towards high-end and high value-added has achieved remarkable results. Among them, the revenue of 12-inch semiconductor silicon epitaxial wafers was 409.6641 million RMB, a year-on-year increase of 115.47%; the revenue of 12-inch silicon polished wafers was 202.9269 million RMB, a year-on-year increase of 25.35%. The proportion of revenue from high value-added epitaxial wafers increased significantly, climbing from 54.01% in the same period last year to 66.87% in the current period, an increase of nearly 13 percentage points, effectively driving the overall profitability recovery of the segment.
From the perspective of shipment data, market demand remains robust. In the first half of 2026, the company's overall sales volume of 12-inch silicon wafers reached 1.1243 million pieces, a year-on-year increase of 38.55%. Among them, the sales volume of core 12-inch silicon epitaxial wafers was 515,500 pieces, with a year-on-year increase of up to 125.19%, achieving doubled growth; the sales volume of 12-inch silicon polished wafers was 608,800 pieces, a steady year-on-year increase of 4.50%.
III. CCMC: Synergistic Efforts of Dual Bases Highlight the Strategic Value of 12-Inch Large Silicon Wafers
CCMC also disclosed its 2026 semi-annual report during the same period. In the first half of 2026, the company achieved a total operating revenue of 1,234.0583 million RMB, a robust year-on-year increase of 57.69%. Among them, the core "silicon wafer" business generated a revenue of 1,224.0536 million RMB, a substantial year-on-year increase of 57.45%.
Relying on the professional layout of its two major Lishui production bases, CCMC has achieved synergistic development across the entire 12-inch silicon wafer industry chain. Among them, Lishui Materials focuses on the full-process production of 12-inch polished wafers from crystal pulling to polishing, achieving a revenue of 203 million RMB in the first half of 2026, with capacity ramp-up and customer certification advancing steadily in parallel. Lishui Technology focuses on the production of 8-inch and 12-inch epitaxial wafers, generating a revenue of 279 million RMB in the first half of the year, becoming a core revenue growth pole for the company.
The two bases contributed a total revenue of nearly 500 million RMB in the first half of the year, accounting for over 40% of the company's total revenue. This fully verifies the implementation effectiveness of the company's strategic layout of 12-inch large silicon wafers, and the competitive advantages of the dual-line layout of high-end polished wafers and epitaxial wafers are gradually emerging.
In terms of project progress, as of the end of the period, the cumulative investment proportion of the "Lishui Epitaxial Wafer Project" with a budget of 4.20 billion RMB reached 89.11%, and the project progress reached 90.00%. The cumulative investment proportion of the "Lishui Annual Production of 3.6 Million 12-Inch Polished Wafers Project" with a budget of 5.646 billion RMB was 62.41%, and the project progress reached 65.00%. Meanwhile, the project progress of the "12-inch 200,000 Pieces Project" with a budget of 3.994 billion RMB and the "12-inch Phase III Expansion Project" with a budget of 1.227 billion RMB have also reached 96.00% and 80.00%, respectively.
IV. TCL Zhonghuan: Billion-Yuan Investment Lands, New Shenzhen Base Expands High-End Silicon Wafer Capacity
On July 17, TCL Zhonghuan released an official announcement, finalizing the landing of a billion-yuan 12-inch large silicon wafer capacity expansion, further amplifying the company's scaled capacity advantage in semiconductor silicon wafers.
The project is implemented by Shenzhen Zhonghuan Leading, a wholly-owned platform under the holding subsidiary Zhonghuan Leading. The full name of the project is "Shenzhen Project for Large Semiconductor Silicon Wafers for ICs (Integrated Circuits)". The total investment is strictly approved at 11.96 billion RMB, of which 11.58 billion RMB is for construction investment and 380 million RMB is for initial working capital. The funds are raised through a diversified financing model including self-owned funds, equity financing, and syndicated loans, with the proportion of self-owned funds for registered capital not exceeding 40% of the total investment.
From the perspective of core project parameters and construction pace, the total construction cycle of the project is 60 months, and it possesses the ability to be put into production rapidly. The first phase only requires 18 months to complete equipment trial production. The production line covers the complete set of processes including single crystal forming, cutting, grinding, heat treatment, polishing, cleaning, and epitaxy. The product matrix includes 12-inch IC polished wafers, epitaxial wafers, and test wafers, with an overall designed monthly capacity of 700,000 pieces.
V. NSIG: Billion-Yuan Capital Increase Empowers Upgrading, 12-Inch Silicon Wafer Sales Surge Significantly
On June 18, NSIG announced that it plans to jointly increase the capital of its subsidiary Shanghai Simg with Shanghai Guosheng Group, a shareholder holding more than 5% of the shares. The total capital increase amounts to as high as 11.448 billion RMB.
Among them, NSIG subscribed to the newly added registered capital of Shanghai Simg with a valuation of 7.448 billion RMB, using its 46.7354% equity in Xingsheng Jingtou, 49.1228% equity in Xingsheng Jingke, and 48.7805% equity in Xingsheng Jingrui. Guosheng Group contributed 4 billion RMB (including 1 billion RMB in debt-to-equity swap) to subscribe to the newly added registered capital. After the capital increase, the registered capital of Shanghai Simg will increase from 2.38 billion RMB to 4.283 billion RMB. The funds will be exclusively used for the "300mm Silicon Wafer Capacity Upgrading Project for ICs" launched and implemented by the company in 2024.
In terms of capacity, in the first quarter of 2026, the company achieved a revenue of 1.084 billion RMB, a year-on-year increase of 35.22%. The sales volume of 12-inch silicon wafers increased by over 90% year-on-year, driving the revenue scale to increase by over 60% year-on-year. The company's 12-inch silicon wafers have achieved full coverage of logic process and memory process products, as well as full coverage of major domestic customers.
VI. Coexistence of Upward Boom and Supply Gap: Opportunities Arrive for Domestic 12-Inch Silicon Wafers
The explosive growth in AI computing power demand is reshaping the global semiconductor silicon wafer industry landscape. According to SUMCO's estimates, the demand for 12-inch silicon wafers by AI servers is 3.8 times that of general-purpose servers. In 2026, the monthly demand for advanced process silicon wafers from AI-related applications is expected to exceed one million pieces, accounting for over 10% of the global 12-inch total demand. Meanwhile, due to wafer stacking, yield constraints, and larger chip sizes, the silicon wafer consumption for HBM under the same capacity is three times that of traditional DRAM. After 3D NAND fully switches to the dual-wafer bonding process, the demand for 12-inch silicon wafers has doubled. The continuous migration of power device production from 6-8 inches to 12 inches also brings deterministic increments to heavily doped silicon wafers.
From the perspective of the competitive landscape, domestic leading enterprises have initially formed differentiated positioning. Xi'an Yicai Materials Materials has prominent capacity scaling effects. Once all three factories are fully operational, the total capacity will exceed 1.8 million pieces per month. The monthly capacity in 2026 can reach 1.2 million pieces, covering about 40% of the domestic 12-inch silicon wafer demand. NSIG's 12-inch silicon wafers have achieved full coverage of logic and memory process products, with a combined capacity of 850,000 pieces per month in Shanghai and Taiyuan. Lion Micro's 12-inch silicon wafer revenue reached 613 million RMB in the first half of 2026, a year-on-year increase of 74.02%. TCL Zhonghuan is expanding its capacity by 700,000 pieces per month through the billion-yuan Shenzhen project, and in the long term, it will form a dual-base supply capacity of 1.4 million pieces per month with the Yixing base.
On the pricing front, the logic for price increases has been confirmed. In May 2026, the three global silicon wafer leaders—Shin-Etsu Chemical, SUMCO, and GlobalWafers—simultaneously issued price increase notices, initiating the second round of price hikes within the year. Among them, the price of conventional 12-inch silicon wafers increased by 5% to 8%, while high-end dedicated silicon wafers adapted for AI/HPC scenarios saw an increase of 18% to 22%. The cumulative increase from the two rounds of price hikes within the year exceeded 15%. Domestic manufacturers followed suit simultaneously. Zhejiang Jinruihong Technology, a wholly-owned silicon wafer subsidiary of Lion Micro, announced that starting from July 1, 2026, its full range of silicon wafers (including 8/12-inch polished and epitaxial wafers) would be uniformly increased by 10%-15%.
However, challenges are equally cannot be ignored. Industry data shows that the global 12-inch silicon wafer market is still dominated by five overseas manufacturers, with a combined shipment share of about 80%. The domestic substitution rate for domestic enterprises in cutting-edge fields remains insufficient. The capital expenditure pressure brought by large-scale capacity expansion, the long-term nature of technology ramp-up, and the process of moving from "scale expansion" to "high-end breakthroughs" remain issues that the industry must face directly.
#Semiconductor Silicon Wafers #NSIG #TCL Zhonghuan