The new 12-Inch factory will generate CNY 3.3 billion revenue per year for the large semiconductor manufacturer.
On January 4, 2020, according to the announcement of Wingtech Technology (600745:SH), the construction of the company's 12-inch semiconductor wafer manufacturing factory project began in China (Shanghai) Pilot Free Trade Zone. Xuezheng Zhang, the company's chairman, said that the manufacturing factory project is planned to be completed and put into operation in 20 months to help its subsidiary, Nexperia, improve production capacity. The project is expected to produce 400,000 wafers per year; these can be widely used in automotive electronics, computing and communication equipment. The output value of the new manufacturing factory will reach CNY 3.3 billion per year.
With the rapid popularization of EV globally, automotive semiconductors are entering the course of rapid development. It is estimated that the scale of the automotive semiconductor market will reach USD 65.1 billion in 2022, accounting for 12% of the global semiconductor market. By 2026, the market share of electric vehicles is expected to exceed that of traditional vehicles, and China will become the world's largest producer and consumer of EVs.