Bomin electronics 6 billion project hand in hefei IC carrier plate production expansion to add new forces

When IC board is in short supply, another PCB manufacturer invests in this field. On the evening of May 25, Bomin electronics announced that it planned to invest 6 billion yuan to build bomin IC sealed loading plate industrial base project. The reporter learned from the relevant person in charge of the company that this project, as a supporting project of Hefei chip industry chain, is expected to get relevant support in terms of capital, policy and market, and the subsequent production capacity will also be matched with local customers in memory chips, micro-electromechanical system chips and other fields.

According to the strategic cooperation agreement signed by Bomin Electronics and hefei Economic development Zone Management Committee, the company plans to invest and build IC sealed loading plate industrial base project in Hefei Economic Development Zone, with a total investment of about 6 billion YUAN, covering an area of about 200 mu, divided into two phases of construction, the first and second phases of investment of 3 billion yuan, scheduled to start in this year and 2025 respectively. After the first phase of the project is completed, it is expected to achieve annual sales of 3.1 billion yuan, annual tax revenue of 175 million yuan, and the need for 3,000 new jobs.

Bomin electronics related person told reporters, including Hefei, the domestic chip industry chain in the board link is still vacant or in short supply, the domestic production rate is low. IC board is developed from HDI board. Based on the company's technology and customer accumulation in HDI products, both parties have reached a preliminary agreement on the project prospect, capital and r&d direction. Local industry chain has nearly 40 sealed test plants, customer demand is strong. Due to the large demand for project funds, the Hefei government is willing to actively promote the participation of government funds and local industrial funds. After the production capacity of subsequent projects is established, it will also give priority to local cooperative clients.

IC board is an important material used to connect the chip and PCB board in chip packaging, accounting for 40-50% of the material cost in low-end packaging, 70-80% in high-end packaging, as the main material with the largest value in the packaging link. In recent years, benefiting from the surge in downstream terminal demand, IC board is facing a continuous shortage.

IC board leader Xin Xing had said in February, this year will continue to increase investment, 80% of the capital expenditure budget will be used for IC board expansion, and the planned expansion capacity has been "fully booked", including ABF board customer booking orders even to 2027-2030.

At present, however, mainland Chinese manufacturers account for only about 5 per cent of the market. Under the background of tight supply and demand and low localization rate, a number of domestic PCB manufacturers have poured into the expansion tide of IC board.

In 2021, Shennan Circuit plans to raise more than 8 billion yuan to invest in FC-BGA package substrate project (6 billion yuan) and IC carrier product manufacturing project for high-order flip chip (2 billion yuan); In February this year, Xingsen technology also officially announced a 6 billion yuan FCBGA package substrate project plan. In addition, jingwang Electronics, Zhuhai Yueya, Zhongjing Electronics and other mainland manufacturers have also announced the construction of IC board projects last year.

The industry intensive expansion trend, coupled with a longer construction period and product verification period, also let some market people give birth to "far water can not solve the near thirst" worry. So how do companies see the risk of future overcapacity?

The person in charge said to reporters, "good projects we will go in this direction", from the current point of view, domestic IC board has several times the growth space, the present more face or the problem of insufficient capacity; Second, IC board has a high customer and verification barriers, the company is also through the upstream and downstream of the industrial chain to participate in the project investment, to help establish a deep cooperative relationship with downstream customers, to ensure orders and market.