The semiconductor industry landscape has undergone significant transformations over the past few decades, and according to Xu Zhiwei, the CEO of Aoxinming Semiconductor Equipment Technology (Shanghai) Co., Ltd., the localization and independence of China's semiconductor industry chain will accelerate further in the near futureWith the recent inauguration of Aoxinming's first research and development center in the Lin-gang Special Area of Shanghai, Xu expressed optimism about leveraging local supply chain advantages to cater to the unique demands of the Chinese market for semiconductor backend equipment.

Aoxinming emerged in August 2023 as an independent brand under ASMPT Semiconductor Division, which ranks first globally in the production of semiconductor assembly and packaging equipmentThe company has established partnerships with notable local firms, including Tongfu Microelectronics, China Resources Microelectronics, OFILM, AAC Technologies, and Sunny Optical Technology.

Despite being a latecomer in the semiconductor packaging sector, Xu believes China can rival global competitors through rapid development and cost-effective solutions

Lin Jugan, Aoxinming’s Chief Technology Officer, noted the significant opportunity presented by the contemporary Chiplet technology, which is being aggressively promoted in China's semiconductor landscapeHe hinted that this could catalyze China's leapfrogging of established technologies similar to what was seen in the electric vehicle sector.

Aoxinming’s initiative to set up a research and development center in China stems from the recognition of the pressing need for indigenous innovationXu highlighted that with the accelerating localization efforts in the semiconductor supply chain, their R&D center in Shanghai aims to bolster the domestic technological development, directly supporting local chip makers and packaging companies in participating effectively in the sector's evolution.

The establishment of Schneider's R&D center holds broader implications too

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With the growing Chinese market's demands and the need for customized developments, Aoxinming’s CFO, Pan Ziwei, also underscored that having an R&D hub in China paves the way for localized solutions tailored specifically for Chinese clients, strengthening their relationships with these customers.

Pan emphasized how critical it is for Aoxinming to respond to the specific needs for higher precision, speed, or lower costs through adaptable research plansHe also pointed out that one of R&D's key missions is to ensure the stability of the supply chain amid growing domestic demand for localization, thus playing a crucial role in the greater semiconductor ecosystem.

The significance of customized services provided through the new R&D center echoes through the industryAt a semiconductor equipment forum last year, speakers indicated that the equipment from ASMPT, including Aoxinming's products, were the only options globally supporting advanced technologies like High Bandwidth Memory (HBM) heterogeneous integration, showcasing their industry leadership.

Turning a broader lens on the global market, recent reports reveal that countries like South Korea, Japan, and the United States are intensifying investments in their semiconductor sectors

For instance, South Korea's President Yoon Suk-yeol announced a record 26 trillion Korean Won support for the chip industry, alongside substantial funding for the country's vital semiconductor initiativesThe United States' "CHIPS and Science Act" remains one of the most notable measures in bolstering domestic semiconductor production.

Meanwhile, China has also been proactive in strengthening its semiconductor strategy, as indicated by the formation of a new national integrated circuit investment fund that recently registered with a record capital of 344 billion YuanThis ambitious fund aims to nurture local semiconductor innovations and support industry players, aligning with the country’s strategic efforts to establish a self-sufficient semiconductor capability amidst international pressures.

However, as semiconductor powerhouses worldwide bolster their domestic industries, the landscape is fraught with geopolitics and "decoupling" scenarios, notably led by the United States as it seeks to curb China's semiconductor advancements through regulatory barriers

This backdrop prompts introspection for companies like ASMPT/Aoxinming, which operates independently with its headquarters in Singapore.

Lin Jugan shared insights on how these geopolitical pressures only serve to accelerate local initiatives in China, asserting that the rapid development within Chinese hubs such as Beijing, Shanghai, and Shenzhen have established a robust full industry chain from chip design to packagingThe collaborative ecosystem evident across multiple cities establishes a strong foundation for future innovations.

On a more optimistic note, Pan Ziwei expressed his long-term faith in the semiconductor market's prospects, arguing that as the global demand for chips continues to rise, driven by sectors ranging from consumer electronics to electric vehicles, companies like ASMPT/Aoxinming will thrive despite current challengesPan pointed out that such transformative times often reward businesses that effectively leverage their advantages in product and technology balance.

Additionally, Lin highlighted potential growth in the chip sector driven by emerging classifications such as power chips alongside traditional logic and memory chips, framing the future of semiconductor applications as broadening amidst innovations in consumer demands and technological advancements