A leading supplier of semiconductor etching equipment announced plans to invest CNY3.5 billion (USD520 million) to expand its production facility in the Lingang Special Area. This expansion aims to increase manufacturing capacity and better serve downstream customer needs, as well as bolster its competitive position.
The company intends to develop the second phase of its Lingang plant, which will encompass research and development, manufacturing, and sales operations. Located in Shanghai, the new facility will produce key products such as etching equipment, metrology and inspection systems, and thin-film deposition tools.
This project will enable the company to diversify into micro-device processing equipment across the semiconductor industry, although specific product details and capacity targets have not been disclosed.
In its financial results for the first half of the year released on the same day, the company indicated that construction will commence in the second half of this year. Once operational, the project is projected to generate approximately CNY3 billion (USD446 million) annually and is expected to employ between 1,500 and 2,000 staff, including 600 to 800 research and development personnel.
The initial phase of the Lingang facility began operations in August 2024, primarily manufacturing core chip equipment such as plasma etchers, thin-film depositors, metal-organic chemical vapor deposition systems, and metrology and inspection tools.
According to the earnings report, the first phase spans roughly 180,000 square meters, while the upcoming second phase will cover around 200,000 square meters.
The company’s net profit more than quadrupled to CNY2.8 billion (USD416 million) over the first six months of the year compared to the previous year, driven mainly by a significant increase in shipments of high-end etching equipment for advanced logic and memory chips, as well as a one-time asset sale gain of approximately CNY953 million (USD142 million). Revenue increased 35 percent to CNY6.7 billion, while research and development expenses grew 37 percent to just over CNY2 billion.
The company’s shares closed at CNY365.50 (USD54.31) in Shanghai today, down 1.8 percent from the previous session, after experiencing fluctuations that ranged from a 3.1 percent gain to a loss during trading.