(Report Producer: Huaan**).
1.1. Development history and evolution - based on the detection of new display devices, expand to the semiconductor field
The company has been going through trials and hardships for more than ten years, and has gone through three stages of development to realize the development process of panel testing as the basic disk and continuous expansion to semiconductor testing. The first stage: from 2011 to 2013, the company was established in May 2011, and the company's first touch screen multi-functional test equipment was successfully delivered and certified as a national high-tech enterprise.
The second stage: from 2014 to 2019, the company officially entered the field of display testing, layout and research and development of OLED testing technology, obtained orders for testing equipment from domestic OLED display manufacturers, and successfully delivered the research and development of OLED screen aging equipment and module automatic optical inspection equipment in 2018-2019, and achieved annual orders exceeding 100 million yuan for the first time, officially establishing the status of the domestic leader in OLED industry testing equipment. Based on the basic disk of panel detection, the company began to lay out the research and development of test equipment for memory products in the semiconductor industry.
The third stage: from 2020 to the present, in the field of OLED, the research and development of OLED screen automatic optical inspection technology and equipment has been awarded the key project of Shenzhen technical research, and has obtained orders for more than 160 Inline testing equipment from major domestic OLED panel factories. In terms of panel inspection (new display Lingcheng) products, the company successfully developed LCD mura repair technology for large-size panels in 2021, and began to develop new display fields such as Micro-LED and AR VR in 2022.
In the field of semiconductors, the company signed a joint venture agreement with South Korea's unitest company, signed a strategic cooperation agreement with Hefei Economic Development Zone, and established a strategic partnership with Hefei Changxin Storage Technology. In terms of semiconductor products, in 2020, the company passed the first mass production verification of semiconductor MEMS probe card products and successfully shipped: in 2021, the company officially launched the local R&D and production of wafer test equipment, MEMS probe cards and high-speed packaging and testing equipment: in 2022, the company signed a localized production and R&D agreement with South Korea's Unispot company for DRAM test and aging system, and in the same year, the local mass production line of Hefei DRAMEMS needle card was invested and constructed.
1.2. The new display and semiconductor memory device detection two-wheel drive
The company is a provider of testing equipment and system solutions, mainly engaged in the research and development, production and sales of new display device testing equipment, and its products are widely used in the optical characteristics, display defects, electrical characteristics and other functional testing and calibration repair in the manufacture of new display devices represented by AMOLED.
In 2020, 2021 and 2022, the proportion of the company's AMOLED testing equipment product revenue to the main business income in the current period was respectively. 25% and 8188%。Since 2015, the company has followed the development direction of the new display device industry (that is, focusing on the field of AMOLED), and the company's new display device testing equipment products are mainly used in the field of AMOLED. At the same time, the company has invested in strategy and gradually extended its development to the field of semiconductor memory device testing equipment. In the field of test equipment for semiconductor memory devices, the proportion of revenue in this field from 2020 to 2022 is as follows: 39%。The overall trend is steadily improving.
Since its establishment, the company has continued to cultivate the leading city of new display device testing equipment. Since 2015, the company has followed the development direction of the new display device industry, and gradually expanded its business to the fields of optical detection and correction repair, aging, and signal generation of new display devices, forming an optical detection and correction repair system for the cell process and module process of new display devices. Rich product lines with independent intellectual property rights, such as aging systems, touch detection systems, signal generators and detection system accessories, provide overall testing solutions for customers in the new display device industry, establish stable cooperative relations with major downstream manufacturers, accumulate rich experience in mass production, and realize the localization of a variety of key testing equipment such as Cell optical testing equipment and Cell aging equipment. With excellent R&D capabilities and reliable product quality, the company's products have successfully realized the deep integration of scientific and technological achievements and the new display device industry.
While the company continues to expand and strengthen the new display device testing equipment business, it will extend the application of testing equipment to the semiconductor industry. Since 2020, the company has set up Jingzhida integrated circuits to cultivate a semiconductor test equipment R&D and production team, established a joint venture company Jingzhida Semiconductor with UNITEST, a South Korean semiconductor memory device testing equipment company, and invested in Guanzhong Jichuang and other companies to provide test equipment and solutions for customers in the semiconductor memory device industry. The company's semiconductor memory device test equipment business is still in its infancy, and the specific business model mainly includes: (1) according to the needs of downstream customers, on the basis of purchasing related products from Unitest or other leading suppliers, providing downstream customers with technical support and after-sales services such as equipment assembly, installation and commissioning, test fixture matching, test program development, product testing and verification, and delivering localized test system solutions; (2) Cooperate with UNITEST to carry out the research and development of DRAM wafer aging test equipment products and the localized production of DRAM aging repair equipment products; (3) Independently carry out the research and development of probe cards, DRAMFT testing machines and other products.
1.2.1. The company continues to accumulate key technologies, and its customers cover head panel factories and semiconductor FABless packaging and testing IDM manufacturers
The company's main products involve new display device testing equipment and semiconductor memory testing equipment, and mainly sells testing equipment, accessories and services to downstream new display device and semiconductor memory device manufacturers. In the field of new displays, with years of R&D innovation and accumulation of production and application technologies, the company deeply grasps the core needs of industry customers for yield and efficiency improvement, and has established stable cooperative relations with customers such as Visionox, TCL Technology, BOE, Guangzhou Guoxian, Hefei Visionox, Shenzhen Tianma and so on. The products have been successfully applied to a number of mass production lines of major customers, helping customers improve the level of production technology, improving product yield and production efficiency, effectively reducing the equipment procurement cost of domestic new display device manufacturers, and vigorously promoting the independent controllability and localization of testing equipment.
In the field of semiconductors, the company has developed customers in the field of semiconductor memory device testing, including Changxin Technology, GigaDevice, Peidun Technology, Jinhua Integration, Tongfu Microelectronics, Taiji Industry, etc. The company will actively promote the independent controllability and localized substitution of domestic semiconductor test equipment, and gradually enhance the company's core competitiveness.
The company's technical strength is increasing day by day. Since its establishment, the company has always been deeply engaged in the field of optical detection and correction repair, electrical signal detection, precision mechanical automation and control, software algorithms and other technologies in the field of testing equipment, with rich experience in technology accumulation and mass production.
1.2.2. The company has a rich product matrix in the field of new displays, continues to expand into the semiconductor field, and continues to invest in research projects
The company's core products in key areas continue to invest in research and development, and the company's new display device testing equipment is mainly used for the optical characteristics, display defects, electrical characteristics and other functions of the cell and module manufacturing processes of new display devices such as AMOLED, TFT-LCD, etc., and is used for product defect detection, product grade judgment and classification, and calibration, repair and re-judgment of some product defects, so as to improve product yield and reduce production loss. And provide data support for the process improvement of related processes.
The company's semiconductor memory device testing equipment is mainly used to test the electrical parameter performance and function of wafer bare chips in the wafer manufacturing process of DRAM and other semiconductor memory devices, or to test the electrical parameter performance and function of chip particles in the packaging and testing process, so as to ensure that the performance and functional indicators of the chip leaving the factory meet the requirements of the design specifications.
1.3. The core technical team has rich experience in the semiconductor industry and a strong lineup of shareholders
The company's core technical team has rich experience in the semiconductor industry, and has organized the research and development of a number of main products, and has dozens of invention patents. The founder of the company, Zhang Bin, has more than 20 years of industry experience, is fully responsible for the company's operation, and presided over the research and development of the company's first AMOLEDcell automatic optical inspection equipment and other core equipment; Mr. Xu Dapeng, director and deputy general manager of the company, has won the third prize of the National Science and Technology Progress Award and the second prize of Guangdong Science and Technology Progress Award. He is mainly responsible for the company's R&D work in the field of semiconductor storage test device testing, and presided over projects such as "General Technical Specifications for Capacitive Touch Screens for Mobile Terminals"; Mr. Cao Baogui, director and deputy general manager of the company, has more than 15 years of industry experience, mainly responsible for the company's research and development in the field of new display device testing, in charge of the company's mechanical automation, software algorithm research and development and production, organized the research and development of cell optical testing equipment, module optical testing equipment and other large-scale main products, and conquered related production, assembly and debugging technologies to achieve batch delivery; Wang Xuan, director of the company's R&D department, has more than 15 years of industry experience, and has organized the R&D and technical guidance of the company's Mura compensation equipment and automatic cell aging equipment.
The company's shareholders have a strong background and have received continuous support from financial and industrial investors in the development of the company. Among the shareholders of the company, there are a number of well-known industrial investment institutions and star first-class investment institutions, including Shenzhen Bund Science and Technology Development *** GigaDevice Innovation), Shenzhen Guozhong Venture Capital (Shenzhen Venture Capital), Guangdong Red Earth Venture Capital (Shenzhen Venture Capital), Shenzhen Nanshan Bridge Excellent Intelligent Equipment (Shenzhen Guidance** (Shenzhen Municipal Finance Bureau), Zhongjin Qiyuan National Emerging Industry Venture Capital Guidance** (Ministry of Finance, CCB Investment**, National Social Security**, etc.)). Among them, Stony Brook Clearstream Investment's related Stony Brook Clearstream Private Equity Management Co., Ltd.'s Stony Brook Industry Heng Integrated Circuit cooperated with Hefei Industry Investment to invest in the parent company of domestic DRAM manufacturer Changxin Storage (Ruili Integration), and promoted the implementation of Changxin Storage Project (China's largest DRAM memory industry independence project).
2.1. The trend of new display production capacity transfer to the mainland is obvious, and the demand for localization of independent and controllable production and testing equipment is gradually highlighted
With a series of policy support and industrial catch-up in China, the proportion of domestic new display device industry in global production capacity has increased rapidly, changing the pattern of the global display device industry. According to data from the China Electronic Information Industry Development Research Institute, in 2017, the new display device production capacity in Chinese mainland was 68 million square meters, and the AMOLED production capacity was 700,000 square meters: and by 2022, the new display device production capacity in Chinese mainland was 2 square meters3.4 billion square meters, AMOLED production capacity of 17 million square meters. The revenue of Chinese mainland's new display device industry continued to grow from 74 billion yuan in 2012 to 586.8 billion yuan in 2021, with a compound annual growth rate of 258%, ranking first in the world in terms of industrial scale.
In the investment of new display device production lines, it usually shows the characteristics of "capacity expansion, equipment first", and the investment in equipment accounts for 60%-80% of the total investment in the production line. The new display device manufacturing equipment mainly includes developing equipment, evaporation equipment, laser equipment, assembly equipment, testing equipment, etc. The development of the new display device manufacturing equipment industry is driven by the new production investment in the downstream industry and the production line upgrade investment due to the continuous emergence of new technologies and new products, and has a high linkage with the development of the display industry.
According to the CINNORESEARCH report, in 2021, Chinese mainland's investment in new display device production line equipment will be about 110 billion yuan, of which AMOLED will be about 60 billion yuan, accounting for 55%: mini LED micro LED will be about 27.1 billion yuan, accounting for 24%: TFT-LCD will be about 22.8 billion yuan, accounting for 21%. TFT-LCD expects that manufacturers will start new factory construction and expansion plans in 2022, and the scale of investment will increase slightly: AMOLED is expected to reach a new high of about 86.6 billion yuan in 2024 with the maturity of high-generation technology; With high contrast, high brightness, high dynamic range, long life and other performance, MiniLED MicroLED has gradually become a cutting-edge technology sought after by the industry, and it is estimated that the equipment investment will reach 27 billion yuan by 2025.
With the rapid transfer of new display device production capacity to the mainland, testing equipment technology is developing towards automation and integration, and the testing equipment market is undergoing high-speed localization substitution. The process of transferring the production capacity of new display devices from overseas to domestic has created a major opportunity for the R&D and production of domestic testing equipment. Domestic testing equipment manufacturers, represented by Jingzhida Technology, have continued to invest in the technical field, and have basically caught up with the technical level of foreign manufacturers, and achieved corner overtaking in some fields. In the case of the same technology, the equipment of domestic manufacturers has more advantages than foreign products. In the current environment of rising international protectionism, domestic display device manufacturers have vigorously introduced domestic equipment, independent and controllable production and testing equipment and localized industrial chains, which have further consolidated China's competitive advantage in the field of new display device production. According to the data and calculations of CinnoResearch, the market space of the main testing equipment of AMOLED's CELI Module process is expected to reach about 4.7 billion yuan in 2025, and the technical reserves are matched with the technical routes and industry development trends of major customers in AMOLED, MicroLED and large-size ultra-high-resolution TFT-LCD, and it is expected to get more orders when customers expand production in the future.
2.2. The company currently occupies a position in the testing equipment industry in the field of new displays
The testing equipment mainly includes Array process optical testing equipment, Array process electrical and other testing equipment, Celi Module process optical testing equipment, cell module aging, touch and other testing equipment, etc. According to the CINNORESEARCH report, the market size of new display device testing equipment in Chinese mainland will be about 5.9 billion yuan in 2021, of which the CEL module process testing equipment will be about 3.4 billion yuan. The new factory construction and expansion will drive the testing equipment market to reach 9.2 billion yuan in 2024, of which the market size of cell module process testing equipment will reach 4.6 billion yuan in 2024.
The detection system market for the new display device array process is still dominated by overseas manufacturers such as South Korea's HB Technology, South Korea's Yangelectronic, South Korea's DIT, Israel's Orbotech, and Japan's V Technology. In recent years, the new display device testing system manufacturers in Chinese mainland represented by the company, Jingce Electronics, Huaxing Yuanchuang, Lingyunguang, etc. have achieved rapid development with independent and controllable technology, the recognition of downstream industries has gradually improved, the market influence has been continuously enhanced, and the dominant position has gradually been achieved in the domestic market.
Jingzhida is committed to the localization of new display device testing equipment, and its core products have been applied in batches in the manufacturing production lines of mainstream new display device manufacturers including Visionox, TCL Technology, BOE, and Shenzhen Tianma. According to the statistics of China International Bidding Network, in 2020-2022, Jingzhida won the bid for 45 domestic AMOLED new display device testing equipment projects in 2020-2022, ranking second, second only to Jingce Electronics, which won the bid for 73 items.
According to the CINNORESEARCH report, automatic optical inspection and correction and repair equipment is the main component of CEL Module process inspection equipment, accounting for more than 60% of the investment amount. With the continuous increase of R&D investment by local equipment manufacturers, the performance of related testing equipment has become increasingly stable, and the localization rate has continued to increase, the cumulative sales volume of domestic enterprises in the amoledcell module process automatic optical inspection and correction repair equipment market in Chinese mainland in 2017 was about 13%, and by 2021 it has exceeded 67%, and the share of Xingzhong Jingzhida products has increased from 3% in 2017 to 15% in 2021, ranking second in the industry.
2.3. Common technologies in the field of new displays and semiconductors
Jingzhida started with new display testing equipment as the basic product business, and extended to the semiconductor field, and the memory device testing equipment in the semiconductor field has commonality with the new display device testing equipment. At the level of technical content, the commonality of new display device testing equipment and semiconductor storage device testing equipment lies in the detection and calibration repair of electrical characteristics, which have basically the same processes and strategies, all of which require signal excitation, signal detection, defect judgment, repair instruction generation and execution, and post-repair detection and confirmation. At the technical level, the commonality of new display device testing equipment and semiconductor memory device testing equipment lies in the difficulty of detection, which is reflected in high-precision signal generation and detection, noise and interference suppression processing, defect judgment algorithms, etc.; In terms of technical characteristics, the commonality of the new display device testing equipment and semiconductor memory device testing equipment lies in the functional module requirements, both of which take the processor unit as the core, and cooperate with the excitation generation unit, output signal driving unit, signal detection unit, and programmable power supply unit of the tested object to achieve relevant detection functions; In terms of the number of parallel tests and test speeds, with the increase of the number of parallel units, the reliability design requirements of the equipment increase. In terms of software development platform, the software structure is basically the same, and the skill requirements for high-level language software developers on the upper computer are also basically the same. The software design requirements for embedded systems are also basically the same; The trend of data analysis is inclined towards big data analysis and artificial intelligence.
2.4. Competitive landscape of semiconductor test equipment industry
SEMI released the Mid-Year Total Semiconductor Equipment Forecast-OEM Perspective at SEMICON WEST2023. Global sales of semiconductor manufacturing equipment by OEMs will decrease by 18.8 percent in 2023 from a record $107.4 billion in 2022, according to the report**6% to $87.4 billion. It will recover to $100 billion in 2024. The semiconductor equipment market is expected to be strong in 2024 after a 2023 re-signing**. In 2023, semiconductor test equipment market sales are expected to close by 15% to $6.4 billion; Sales of packaging equipment are expected to decline by 205% to $4.6 billion. In 2024, the field of test equipment and packaging equipment is expected to grow by 79% and 164%。
The testing machine market share is the largest in the global semiconductor test equipment, among which the market share of SOC and memory testing machine is prominent. Testing machines account for 63 percent of the world's semiconductor test equipment1%, ranking first in market share, and sorting machine and probe ranked second and third. In the separator market segment, the turret sorter has the largest market share, accounting for 55%: in the testing machine segment, SOC and memory testers have the most extensive application range among the global semiconductor testing machines, accounting for more than 80% of the market, and their technical barriers are also the highest; In the Chinese market, semiconductor testing machines are still dominated by SoC and memory testing machines, accounting for more than 6O% of the market. The SOC tester is mainly for the test system of SoC chip (system-on-chip design), while the memory tester is mainly for memory testing, and then reads and verifies the test after writing data.
2.5 companies cooperate with UNITEST products and probe cards
The key products in Jingzhida semiconductor equipment, DRAM testers and probe cards, as well as DRAM wafer aging test equipment, are in the testing and verification stage. Based on independent and controllable needs, the company continues to invest in research projects. Through fundraising, the company will invest funds in the research and development project of a new generation of semiconductor memory device test equipment, and continue to invest in "dynamic storage technology test system research and development" and "MEMS probe card research and development trial production", while enhancing the company's technical competitiveness, meet the needs of industry customers for key test equipment and consumables, and establish a dominant position in the field of semiconductor test equipment.
After comprehensively studying and judging the development trend of the domestic semiconductor industry and the characteristics of the semiconductor memory device industry chain, Jingzhida focuses on the development of semiconductor test equipment business on DRAM and other semiconductor memory device test equipment with many types, high value, wide market space and great potential for technical research. According to IC Insights, DRAM and NAND Flash have been dominating the semiconductor memory device market, accounting for more than 56% and 41% respectively in 2021. The broad market demand is conducive to the development and growth of semiconductor test equipment enterprises. The storage testing machine is the most technically difficult and valuable testing machine among the testing machines, with a unit price of up to 100-3 million US dollars.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
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