Semiconductor packaging and testing leader Changdian Technology completed 5 billion yuan of capital increase

May 7, Changdian Technology announced that the company completed a fixed-rate fundraising of about 5 billion yuan, more than half of the fundraising amount from the Abu Dhabi sovereign wealth fund, JP Morgan, Guangfa Fund, is the heart of the Valley and other domestic and foreign head of the investment institutions.

According to the previous announcement, the long power technology to 23 specific objects non-public offering of RMB ordinary shares (A shares) *** counting 177 million shares, the issue price of RMB 28.30 yuan / share, to raise funds of 5 billion yuan, mainly invested in the "annual production capacity of 3.6 billion pieces of high-density integrated circuits and system level packaging module project ", "annual output of 10 billion pieces of high-density hybrid integrated circuits for communications and module packaging project". The company said the fundraising will help develop SiP (System in Package), QFN (Quad Side Pinless Flat Pack), BGA (Ball Grid Array Package) and other packaging capabilities to better meet the demand for packaging for end-use applications such as 5G communication equipment, big data, automotive electronics, etc., and to further promote the development of 5G technology in China's commercial sector.

With the chip size getting smaller and smaller, more and more types of chips, the number of output pins has increased dramatically, 3D packaging, fan-shaped package (FOWLP/PLP), micro-pitch soldering technology, as well as the development of SiP and other technologies to become the continuation of Moore's Law, one of the best choices. The semiconductor packaging industry is also in transition from traditional packaging to advanced packaging technology, and the proportion of advanced packaging technology in the overall packaging market is gradually increasing.

According to market research organization Yole, the global market size of advanced packaging in 2018 was about $27.6 billion, accounting for about 42.1% of the global packaging market, and the global market size of advanced packaging is expected to be about $43.6 billion in 2024, accounting for about 49.7% of the global market size, and the CAGR of the global advanced packaging market in 2018-2024 was about 8%, compared to the overall packaging market (CAGR=5%) and traditional packaging market in the same period, the growth of the advanced packaging market is more significant, and will contribute to the main incremental volume of the global packaging and testing market.

In addition to the evolution to advanced packaging, the demand for the packaging and testing industry is also rising. Benefiting from the wave of IC localization, intelligent, 5G, Internet of Things, electric vehicles and other new technologies, as well as the epidemic spawned by the "house economy" has brought PC, servers, video games and other electronic terminal demand, semiconductor wafers and testing capacity are in short supply, but also boosted the performance of packaging and testing vendors.

2020 long power technology revenue of RMB 26.46 billion, an increase of 28.2% over the previous year, net profit of more than the company listed on the 17-year net profit of twice the sum of 17 years; through the rich microelectronics 2020 to achieve operating income of 10.769 billion yuan, compared with the same period a year earlier increased by 30.27%, the net profit of 338 million yuan, an increase of 1,668.04%; Huatian Science and Technology 2020 revenue of 8.382 billion yuan, an increase of 3.44%, net profit of 702 million yuan, an increase of 144.67% over the previous year.

The huge demand in the market has led to a shortage of semiconductor supply chain and production capacity, and the contradiction is difficult to resolve in the short term. Tomfoolery Microelectronics said, at present, the semiconductor industry is in a high boom cycle, capacity supply constraints brought about by the shortage of goods, price increases have been spread throughout the industry in many parts of the industry, from the design to the wafer to the sealing and testing, are negotiated with the customer to raise prices. Semiconductor capacity constraints will continue for quite some time. "Semiconductor sealing and testing capacity has appeared for a long time in short supply situation, the company can take advantage of this time to communicate with customers together, negotiation, adjust the cost structure and price, improve the efficiency of capacity utilization. On the one hand, to drive the company's profitability rebound, on the other hand, to realize the benign sustainable development of the company and customers. "

Zheng Li, chief executive officer and director of Changdian Technology, said at a recent forum that this capacity constraints will be alleviated to a certain extent in September and October this year. He said at the results meeting that the company's three packaging and testing plants purchased in Singapore are expected to go into production in 2021.