(Economic Observation) SMIC's high-level changes, changes in technical routes?

　　China News Agency, Beijing, December 16 (Reporter Liu Yuying) From 15th to 16th, SMIC's top management changed dramatically.

Analysis believes that personnel changes will trigger changes in the technical route.

　　On the evening of the 15th, SMIC announced that Jiang Shangyi had been appointed as the Vice Chairman of the Board of Directors of SMIC, the second type executive director and a member of the Strategy Committee.

On the 16th, SMIC confirmed that Liang Mengsong, the company's executive director and co-CEO, has offered to resign.

These two are technical leaders in the chip industry, and both have worked in the foundry company TSMC.

　　Affected by this news, SMIC’s A-share share price fell by nearly 10% on the 16th, and finally closed at 55.2 yuan (RMB, the same below) per share, a decline of 5.53%.

After trading resumed in the afternoon, SMIC's Hong Kong stocks fell more than 8% to close at HK$20.20 per share, a drop of 4.94%.

　　According to media reports, Jiang Shangyi, 74, served as an independent non-executive director of SMIC from December 20, 2016 to June 21, 2019.

From 1997 to 2013, Jiang Shangyi served as vice president of research and development and co-chief operating officer of TSMC, which made TSMC's industry status from a technology follower to a technology leader.

　　Liang Mengsong, 68, joined SMIC in October 2017.

The resignation of Liang Mengsong disclosed on the Internet stated that he spent three years leading SMIC to complete 5 generations of technology development from 28 nanometers to 7 nanometers.

SMIC's 28-nanometer, 14-nanometer, 12-nanometer, and n+1 technologies have all entered mass production, and the development of 7-nanometer technology has also been completed. Risk mass production will be available in April next year.

　　SMIC is the largest and most technologically advanced integrated circuit chip manufacturer in Mainland China.

In the first three quarters of 2020, SMIC’s revenue was 20.8 billion yuan, a year-on-year increase of 30.2%; net profit attributable to shareholders of listed companies was 3.08 billion yuan, a year-on-year increase of 168.6%.

Classified by technology node, 14/28 nanometer wafers accounted for 14.6% of wafer revenue in the third quarter.

　　At present, the biggest pressure and difficulty facing SMIC is that it cannot get the most advanced equipment.

In early October, SMIC confirmed that it was subject to export control by the United States.

In early December, the US Department of Defense included SMIC on the list of military-related companies.

　　SMIC's third quarterly report also shows that the company's 2020 capital expenditure plan will be revised down from about 45.7 billion yuan to about 40.2 billion yuan, mainly due to the extension or uncertainty of the supply period of some machines due to US export controls, and logistics reasons The arrival of some machines was delayed.

　　Zhang Yang, a senior analyst at Zhongcheng Think Tank, believes that SMIC’s personnel changes will inevitably lead to changes in technical routes.

The reason SMIC hopes to change its technological route is closely related to the current US sanctions and blockades on the Chinese chip field.

　　He said that SMIC’s 7nm has entered the stage of risky mass production. According to the previous technical route, the next step should be 5nm, 3nm and other technologies. It is necessary to break through these technologies in EUV lithography machines, but under the current situation, SMIC The relevant lithography machine cannot be obtained.

Therefore, SMIC may want to adjust its technical route and improve product performance through other methods or paths, but the specific route and method have not yet been finalized.

　　Industry analyst Wang Ruchen believes that apart from the technical route, the two have different business routes.

He believes that Liang Mengsong pays more attention to long-term technical competitiveness, while Jiang Shangyi pays more attention to operation and supply chain. In terms of decision-making control and business dimensions, it may make the system work better.

　　At present, SMIC is still at a critical moment in corporate development and technological innovation.

Due to the absence of EVU lithography machines and other equipment, SMIC’s 5nm and 3nm process technology research and development is at a standstill.

7 nanometers will start mass production at risk next year, which still has a gap with commercial mass production.

While TSMC's 5nm has been mass-produced, Samsung plans to hit 3nm mass production in 2022.

　　Many observers believe that companies should maintain stability when dealing with external pressures, otherwise the gap will be difficult to narrow.

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