Editor’s Note
This report details a significant investment agreement between China’s Xi’an High-Tech Zone and two South Korean firms, Shinhan Diamond and LOT Vacuum, to establish semiconductor manufacturing facilities. It underscores the ongoing international collaboration and strategic development within the global technology supply chain.
The Xi’an High-Tech Zone in China announced on the 17th that it has reached an investment agreement with South Korea’s Shinhan Diamond and LOT Vacuum to establish manufacturing facilities for semiconductor equipment and components in Xi’an.
Officials from the Xi’an municipal government, including Secretary Ma Xianping of the High-Tech Zone, visited South Korea for three days starting on the 9th, touring semiconductor companies such as Samsung Electronics, Simmtech, LOT Vacuum, Shinhan Diamond, SEMES, Ronda Korea, and Bobu High-Tech.
Shinhan Diamond has decided to invest 250 million yuan (approximately 51.6 billion won) in Xi’an to build manufacturing facilities for diamond CMP (Chemical Mechanical Planarization) discs and BWG (Back Grinding Wheels) used in CMP processes. Once the factory is completed and operating at full capacity, the annual sales revenue of components produced there is expected to reach 800 million yuan (approximately 165 billion won).
LOT Vacuum plans to invest 9.2 billion won in the first phase to build R&D and production facilities for semiconductor vacuum pumps. The goal is to commence construction in February next year and begin trial production in June. Upon completion, the facility is expected to produce 150 vacuum pumps per month, with an annual production value of 250 million yuan (approximately 46 billion won). There is also potential for expansion with a second-phase investment depending on market demand.
The Xi’an local government explained that this successful investment attraction reflects its shift towards acting as a ‘service provider’ for businesses rather than focusing on regulation and control. Xi’an is home to Samsung Electronics’ NAND flash manufacturing cluster and is recognized as a central hub for advanced manufacturing in western China.