[News] China’s 12-Inch Silicon Wafers Hit the Accelerator with Billions in New Capacity Investments

Rising AI computing power demand continues to drive the market for 12-inch silicon wafers, combined with capacity expansions across HBM, 3D NAND, and advanced logic nodes, opening a crucial window of opportunity for domestic large silicon wafer manufacturers.

Since early 2026, major Chinese players—including Xi’an ESWIN Material, Lion Microelectronics, CCMC, TCL Zhonghuan, and NSIG—have stepped up expansion plans. With monthly production and sales volume crossing the one-million-unit mark and multiple RMB 10 billion-level projects breaking ground, China’s 12-inch silicon wafer industry is accelerating from yield ramp-up to commercial volume production, while competition expands into high-end specialized products and differentiated strategies.

Xi’an ESWIN: Monthly Sales Exceed 1 Million Units; Capital Raised Boosted by RMB 6.5 Billion for High-End Capacity

On August 8, ESWIN announced the completion of an RMB 6.5 billion capital increase in Wuhan ESWIN Material alongside multiple strategic investors. The proceeds will be fully channeled into constructing its 12-inch silicon wafer production hub in Wuhan, focusing on high-end capacity.

ESWIN previously reported that monthly production and sales of its 12-inch electronic-grade silicon wafers exceeded 1 million units, officially marking its entry into commercial-scale mass supply.

Notably, main structural topping-out for its third plant in Wuhan was completed in May, with equipment installation scheduled to begin in October. Once all three production facilities in Xi’an and Wuhan reach full design output, ESWIN’s long-term 12-inch wafer capacity will reach 1.8 million units per month.

Lion Microelectronics: 12-inch Epitaxial Wafers Drive Top-Line Growth

According to Lion’s H1 2026 financial report, its semiconductor silicon wafer division generated RMB 1.582 billion in revenue, up 25.68% YoY. Net profit attributable to shareholders and adjusted net profit both turned profitable.

Revenue from 12-inch silicon wafers reached CNY 613 million, up 74.02% YoY. By product breakdown, 12-inch epitaxial wafer sales totaled CNY 410 million (up 115.47% YoY), while polished wafer sales reached CNY 203 million (up 25.35% YoY). Epitaxial wafers grew from 54.01% to 66.87% of total 12-inch wafer revenue.

In shipment volume, 12-inch silicon wafer sales reached 1.1243 million units in H1, up 38.55% year-over-year. Epitaxial wafer shipments reached 515,500 units, representing a 125.19% increase YoY.

Zhongxin Wafer: Dual-Base Synergy for Polished and Epitaxial Wafers

Zhongxin Wafer recorded total revenue of RMB 1.234 billion in H1 2026, up 57.69% YoY, with its silicon wafer business contributing RMB 1.224 billion (up 57.45% YoY).

The company leverages its dual operational bases in Lishui to advance its full 12-inch supply chain footprint. Lishui Material focuses on 12-inch polished wafers, while Lishui Technology targets 8-inch and 12-inch epitaxial wafers. The two bases jointly generated nearly RMB 500 million in H1, accounting for over 40% of total revenue.

Project execution is accelerating across all fronts:

• RMB 4.2 Billion Lishui Epitaxial Project: 90% construction progress.
• RMB 5.646 Billion Project (3.6M 12-inch Polished Wafers/Year): 65% construction progress.
• 12-inch 200,000 Wafers/Month Project & Phase III Expansion: Reached 96% and 80% construction progress, respectively.

TCL Zhonghuan: RMB 11.96 Billion Megaproject in Shenzhen

On July 17, TCL Zhonghuan announced an RMB 11.96 billion investment to construct a large-diameter semiconductor wafer manufacturing plant in Shenzhen.

The project has an overall construction cycle of 60 months, with Phase I target trial equipment deployment slated within 18 months. The facility will cover the complete fabrication flow—including crystal pulling, slicing, grinding, heat treatment, polishing, cleaning, and epitaxy. The planned portfolio spans 12-inch polished wafers, epitaxial wafers, and dummy/test wafers, with an aggregate design capacity of 700,000 units per month.

NSIG: RMB 11.448 Billion Capital Injection into Zingsemi

On June 18, NSIG and Shanghai Guosheng Group jointly injected RMB 11.448 billion into subsidiary Shanghai Zingsemi Semiconductor to fund its 300mm wafer capacity upgrade project.

In 1Q26, NSIG reported revenue of CNY 1.084 billion, up 35.22% YoY. 12-inch silicon wafer shipment volumes rose over 90% YoY, driving relevant segment revenue up by over 60%. Currently, NSIG’s 12-inch wafer portfolio addresses both logic and memory process platforms, supplying major domestic foundries and IDMs.

Upward Cycle Opens Growth Window for China’s 12-inch Wafers

Surging AI workloads continue to expand demand for 12-inch silicon wafers. Under strong demand dynamics, domestic vendors are executing capacity additions while building product differentiation:

• ESWIN: Targeting a long-term monthly capacity of 1.8 million units.
• TCL Zhonghuan: Planned 700,000 units/month design capacity in Shenzhen.
• NSIG: Comprehensive coverage across logic and memory architectures.
• Lion: Rapid top-line expansion spearheaded by 12-inch epitaxial products.

Positive signals are also emerging on wafer pricing. In May, global leaders Shin-Etsu Chemical, SUMCO, and GlobalWafers initiated their second price hike of the year. Standard 12-inch wafer prices rose by ~5%–8%, while high-end dedicated wafers for AI/HPC surged by 18%–22%. Chinese domestic suppliers followed suit, with Ningbo Ql Electronics raising prices across its entire silicon wafer line by 10%–15% effective July.

(Photo credit: FREEPIK)