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Ferrotec, a Japanese semiconductor material manufacturer, is deeply engaged in the Chinese market
2021-02-18

    Ferrotec is more likely to be more favorable to the Chinese market, and it is not afraid of possible sanctions by the United States. It may have a great relationship with his Chinese origin. Although there is also a view that even if the U.S. regime changes, the confrontation between China and the United States will not ease, especially in the field of high technology. Choosing to be close to China may be a gamble, but I believe that the motherland will not take those who believe in themselves.

    Under the Sino US trade friction, many international companies either choose to exit the Chinese market to prevent being targeted by the United States, or choose to low-key, act quietly or wait-and-see. Few companies choose to continue to invest in China or even finance in China. In the context of Sino US trade friction, forrotec, a Japanese semiconductor material and equipment parts manufacturer, has also chosen to continue in China against the background of Sino US trade friction A company that invests in high-level equipment.

    Founded in 1980, forrotec started with ferrofluid magnetic fluid and ferrofluidic sealing products, and then gradually grew into a company providing advanced semiconductor materials and equipment related parts for many fields, such as ceramic products, gas deposition SiC products, etc. Many products of forrotec are among the top in their respective fields, such as 65% in the vacuum wind tight parts market, and 90% in the market of probe plate cutting ceramics. There are many other achievements like this.

    From Ferrotec's official website, Ferrotec currently has five major business segments, namely semiconductor manufacturing, electronic devices, automobiles, solar cells and medical devices. Semiconductor and other equipment related products are their main business, accounting for 65% of the total revenue of forrotec. From the perspective of overseas business structure, China is the main revenue source of forrotec. Ferrotec decided to invest in China as early as 1992, and established Hangzhou Dahe thermomagnetic Electronics Co., Ltd. and Shanghai Shenhe Electronics Co., Ltd. In 2017, Ferrotec and the two subsidiaries jointly established Hangzhou Zhongxin wafer semiconductor Co., Ltd. which mainly built 300000 8-inch silicon polishing wafer projects and 200000 12 inch semiconductor silicon polishing wafer projects per month.

    Although Ferrotec sold 60% of the equity of Hangzhou Zhongxin Jingyuan to local government and private investment funds in September 2020, forrotec's investment in China market has not stopped. Ferrotec's total equipment investment in fy2019 increased by 30%, with 96% of which accounted for 96 percent of the total investment in China, the largest of which was to build semiconductor wafer production equipment in Hangzhou factory, according to the economic news of Japan.

    Ferrotec is also expanding its financing activities in China. According to the article recently interviewed by Ferrotec President hexianhan by Nikkei China. Ferrotec raised about 55billion yen from China's private and sovereign funds by transferring and increasing the equity of core subsidiaries involved in silicon wafer, the semiconductor basic material. "Ferrotec originally intended to expand wafer business independently, but semiconductor related fields were greatly affected by Sino US trade friction, and the environment has become very severe since 2019," he said. The Chinese government also strongly supports the semiconductor industry. Ferrotec, with the help of the Chinese government and the people, is beneficial to Ferrotec's own development. "

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    At present, semiconductor materials and equipment are a very scarce link in China's semiconductor industry chain. If more companies with advanced technology and products like Ferrotec are willing to invest or cooperate, it will be of great help to improve our technology and production capacity. Of course, it's a win-win thing for these companies to get good profits from it. He Xianhan also said that Sino US trade frictions are the east wind for Ferrotec. Chinese enterprises can not import relevant products from American enterprises, they can only find alternative products, and more and more Ferrotec products are purchased.

    The reason why Ferrotec favors the Chinese market and is not afraid of possible US sanctions may have a lot to do with he Xianhan's Chinese background. In his early years, he studied in Japan, and then returned to China to join Ferrotec. It can be said that Ferrotec's career in China was developed by he Xianhan, who was promoted step by step to the current president of Ferrotec and became the leader of an international well-known semiconductor company.

    Although there are also views that even if the U.S. regime changes, the confrontation between China and the United States will not ease, especially in the high-tech field. It may be a gamble to choose to be close to China, but I believe that the motherland will live up to those who believe in themselves.