Project name

Renovation & Expansion of Production Facility

Cooperation form

Equity JV or contractual JV

Project description

Production scheme
Construction plan
Market analysis
Operation scale
Sales forecast

   Project scale: capacity increase of 6” - 8” silicon epitaxial wafer by 500,000 pcs a year.
   The project intends to introduce fund towards the purchase of foreign advanced epitaxial furnace and related test equipment as well as the erection of related factory buildings and power supply facility to adapt to production needs. In time, the annual production capacity of 6”-8” silicon epitaxial wafers will reach 1.5 million pcs. The project will be executed in three phases, with investment of RMB 127 million, RMB 200 million and RMB 173 million respectively. According to plan, the project will become the largest expitaxial wafer production base in China by end 2007. The silicon expitaxial wafer is an essential material for IC components. The IC chipsets made of epitaxial wafers have wide applications in computer, IT, telecommunication, energy and home appliance industries. China is now the biggest producer of consumer electric appliance and a major producer and consumer of telephone and cell phone. As the quality of domestic-made silicon wafers improves, more and more foreign component manufacturers will turn to China for epitaxial wafers and polishing wafers. Therefore, the project has huge market potential both at home and abroad.

   Annual sales income is forecasted at RMB 500 million and annual profit at RMB 87 million.   

Equipment import & material supply

   24 epitaxial furnaces to be purchased from LPE (Italy) ； a few sets of test apparatus to be purchased from SSM, ADE and VERTEQ of USA. Main materials like liners for polishing wafer and chemical gas to be supplied from home.

Investment estimate & cost efficiency

Total investment

USD60 million

Registered capital

USD8.56 million

Annual sales

RMB500 million

Anticipated means of investment from foreign partner

Annual profit

RMB87 million

Foreign exchange

Technology

Equipment

Brand name

Others

Internal return rate

21.51%

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Payback period

5.9 yrs

Basic facts of Chinese partner (ownership, total and fixed assets, current products and sales, current equipment and technology, support facility, etc.)

   Ningbo Lili Electronic Co., Ltd. is a shareholding enterprise founded by the former senior technical and managerial personnel from Zhejiang University which specializes in the production of semiconductor silicon materials. The company was incorporated in June 21, 2000 in Ningbo Free Trade Zone, with a registered capital of RMB 71.08 million. Presently it has annual sales of RMB 200 million and total assets of RMB 443 million and occupies a land area of 50,000 square meters. It employs 285 people, 52 with bachelor degree or above, 21 with master or doctorate degrees. The core business of the company covers manufacturing and sales of monocrystalline ingots, polishing wafers and epitaxial wafers. The company relies on the silicon material lab and the semiconductor research institute of Zhejiang University for technical support. The company also owns 10 patents and is a research result industrialization base under the national “863” Program and a state-level key high-tech enterprise. A post-doctorate station is also provided here. Professor Li Liben, chief executive of the company, is a State-honored specialist.

Project location & geographic advantage

   The project is located in Ningbo Free Trade Zone and is entitled to preferential policies of the Zone. Matching industries are complete here.

Project status quo

   First phase of project already completed, with investment of RMB 110 million in fixed assets; 6 epitaxial furnaces already purchased, and support facilities like transformer substation, hydrogen station already completed and in use.

Project data available

Project Proposal and FS    

Organization to contact

Ningbo Lili Electronic Co., Ltd.

Person to contact

Tu Honglang

Address

7 Xingye Fourth Road, Ningbo Free Trade Zone

Postcode

315800

Telephone

0086-574-86820228

Fax

0086-574-86820228

E-mail

thl88@163.com 

Website

www.ql-electronics.com