MaKe | 12-inch Silicon Wafer Leader ESWIN Material Closes Nearly RMB 4 Billion Series C Round, Source Code Capital Joins
We look forward to supporting the long-term development of core Chinese technology enterprises like ESWIN Material.
#MaKe Key Updates from Source Code Capital and MaHui Members
Recently, Xi'an ESWIN Material Technology Co., Ltd. (hereinafter referred to as "ESWIN Material"), a leading domestic manufacturer of 12-inch silicon wafers, completed a nearly RMB 4 billion Series C funding round — the largest single private financing deal in China's semiconductor silicon wafer industry to date. This round was led by CNBM New Materials Fund, with participation from Source Code Capital, Yufu Holdings, Financial Street Capital, Chang'an Huitong, Shangqi Capital, SDIC Venture Capital, Shanghai Comprehensive Reform Fund, China Development Bank Technology Innovation, Guangxi Investment Capital, and Hongsheng Capital (in no particular order), among other prominent institutions. Existing shareholders China Life Equity Investment, Zhongji Investment, and Puyao Capital also continued to increase their investments. To date, ESWIN Material has raised over RMB 10 billion in total funding, leading the primary market comprehensively.
The integrated circuit silicon materials industry is a strategic and foundational link supporting the development of the semiconductor sector. In 2021, the global market exceeded $14 billion, underpinning a trillion-dollar electronics information market. As integrated circuit processes and technologies advance, silicon wafers are trending toward larger sizes, with 12-inch wafers serving as the mainstream format for the present and foreseeable future. Driven by emerging applications such as 5G, new energy vehicles, and AIoT, global demand for 12-inch silicon wafers is growing rapidly. According to Omdia, demand will increase from 7.84 million wafers per month in 2022 to 9.78 million wafers per month in 2026. Currently, domestic semiconductor silicon wafer capacity is concentrated in 8-inch and smaller sizes, with the vast majority of 12-inch prime wafers still relying on imports. Accelerating the improvement of domestic silicon wafer self-sufficiency and gaining主动权 in the supply chain is of great significance to the healthy development of China's semiconductor industry.
ESWIN Material is currently one of the few domestic semiconductor materials companies capable of mass-producing 12-inch large silicon wafers, specializing in the R&D and manufacturing of semiconductor-grade 12-inch silicon single-crystal polished wafers and epitaxial wafers. ESWIN Material strictly controls product quality according to world-class standards, achieving globally leading levels in key metrics such as crystal quality, warp quality, particle control, and contamination control, with yield and prime wafer rates rising to top domestic levels. The company has already passed product validation with multiple key domestic and international customers, with strong customer demand securing capacity for the next three years.
Leveraging core technologies and a management team with extensive semiconductor industry operations and management experience, ESWIN Material has made rapid progress in customer onboarding, mass production, and yield improvement. ESWIN Material's Phase I project began production in July 2020, with current monthly capacity reaching 300,000 wafers — ranking first domestically in scale. Phase II construction has already commenced; upon reaching full capacity, total output will reach 1 million wafers per month, with shipments expected to rank among the global top six.
ESWIN Material CEO Yang Xinyuan stated: "We thank our new and existing shareholders for their support of ESWIN Material. We will continue to optimize and upgrade our equipment and processes, enhance our technical capabilities and product breadth, and are committed to providing global customers with higher-quality 12-inch large silicon wafer products and professional services, further strengthening the competitiveness of China's integrated circuit industry chain."
Wu Fan, Managing Director at Source Code Capital, stated that amid intensifying uncertainty in the current international landscape, Source Code Capital maintains an optimistic outlook on the development prospects of China's high-tech industries. We have long walked alongside entrepreneurs and observed that a cohort of Chinese entrepreneurs have invested considerable time and costs in sustained R&D, diligently building internal capabilities over the long term, continuously leading the nation's advanced manufacturing sector to upgrade within the global supply chain toward higher technical levels and greater value-added — this is the correct path for Chinese high-tech enterprises to iteratively evolve and truly develop international competitiveness. As a leading market-driven investment institution, Source Code Capital has consistently put its weight behind China's hard tech development, having made comprehensive deployments across the intelligent manufacturing industry chain, and practicing its "Full Code Power for You" philosophy to provide systematic entrepreneurial services through its four-horizontal, ten-vertical framework — assisting technology companies to succeed through strategic direction, policy interpretation, industrial ecosystem resource sharing, and more.
Large semiconductor silicon wafers represent a critical direction for semiconductor localization, serving as a core raw material accounting for over one-third of chip costs, within a massive industry worth hundreds of billions of RMB, where the domestic substitution rate is currently in a phase of rapid acceleration. ESWIN stands as a domestic leader in 12-inch semiconductor silicon wafers, with an excellent team and deep technical accumulation, achieving latecomer advantages. Source Code Capital is committed to creating enduring, real value, and is dedicated to supporting the long-term development of core Chinese technology enterprises represented by ESWIN Material.
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