High-end digital analog hybrid chip products collaborative integrated circuit manufacturing in Macau - 澳門高端模擬與數模混合芯片產品協同集成電路製造

Director 指揮 ： KEITH YUNXI ZHU 朱耘希 | OLIVER NILES WHITE 懷特 尼爾斯 奧立佛 | AUTUM SHUANG QIU 秋爽

Supervisor 監事 ： Oliver Thomas Dalmi 達爾米 托馬斯 奧立佛, Lisha Chen 陳麗莎, Even Xia Ni 倪夏

Co-Authors 作者 ： Eric Meindl, Yifan Ding, Ming Chen, Peng Chen, Vicky Minnan Feng, Xin Huan, Yue Ma, Ricky Weiqi Shi, William Wang, Josie Yunxi Chu,

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EXECUTIVE SUMMARY
行政摘要

As one of the most famous destinations for visitors from all over the world, Macau's potential in manufacturing and financiers has always been shadowed by its glory of tourism. Beneficial from its unique geo-strategical location and open market policy, Macau has the potential to be the following global manufacturing and financial center. Accordingly, we at THE KEITH & EVEN GROUP are pleased to introduce the upcoming microchip project in Macau to our potential investors.
澳門作爲舉世聞名的旅游勝地，其在製造業和金融方面的潛力經常被其繁榮的旅游業的光輝所掩蓋。得益於其得天獨厚的地緣位置和開放的市場政策，澳門擁有足夠的潛力成爲下一個國際金融以及製造業中心。因此，奕資有限公司在此很高興為潛在的投資者們提供一個瞭解即將到來的澳門芯片製造工廠項目的機會的窗口。

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Please note: this document is for demonstration purposes, more information to be disclosed upon declassification. If you are a prospective investor, please contact the External Affair Bureau of THE KEITH & EVEN GROUP LIMITED (HONG KONG).
請注意：這是一個為了演示而成的文件，更多信息會在解密期過後釋出。若閣下是預期投資者，請聯繫奕資有限公司（香港）之對外事務省。

This proposal is written for the project plan "Macau Microship Project" by THE KEITH & EVEN GROUP (Hong Kong) in September 2021, and declassified on September 30, 2022. This document is not regarded as the final contract of the project. The contents of this proposal include the Quotation, Transaction Operation Scheme, Authorization of Participated Negotiator, General Information of Suppliers, and other supporting documents (other supporting materials and qualification certificates to be provided in the competitive negotiation documents section).
本檔案是奕資香港於 2021 年 9 ⽉提出的項⽬⽅案建議，並與 2022 年 9 月 30 日解密。本檔案不作為契約雙⽅關於本項⽬的最終契約。本檔案內容主要包括參加報價書、報價⼀覽表、運作案、法定代表⼈授權委託書、供應商⼀般情況、其他證明檔案（按招標檔案格式整理的競爭性磋商檔案需要提供的其他證明材料和資質證書）等幾個⽅⾯。

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1.

Summary
概要

1. Macau in Brief
   澳門簡介

   Macau is a city and a special administrative region of the People's Republic of China in the western Pearl River Delta by the South China Sea, with a distance to Hong Kong of only 63km. The city has one of the highest per capita incomes in the world, and its GDP per capita by purchasing power parity is one of the highest in the world.
   澳門是中國的特別行政區，其位於珠江口西側，緊鄰中國南海，距離香港僅 63 公里。其擁有 68 萬人口，佔地面積 32.9 平方公里，是全世界人口最緊密的城市之一。澳門的人均收入水平亦在世界處於領先水平，且擁有極强的購買力。
   
   Macau is the world's 83rd-largest economy, with a nominal GDP of approximately MOP433 billion (US$53.9 billion). Export-oriented manufacturing contributed to a much larger share of economic output, peaking at 36.9 percent of GDP in 1985 and falling to less than 1 percent in 2017. The bulk of these exports were cotton textiles and apparel, including toys and electronics. At the transfer of sovereignty in 1999, manufacturing, financial services, construction, real estate, and gaming were the four most significant sectors of the economy. The regional economy is heavily reliant on casino gaming. Macau's shift to an economic model entirely dependent on gaming caused concern over its overexposure to a single sector, prompting the regional government to attempt re-diversifying its economy.
   澳門是世界的第八十三大經濟體，其年均生產總值達到539億美元。其區域經濟收入很大依賴於當地的博彩業及衍生業務。澳門以出口為導向的製造業曾經在生產總值的很大一部分，曾經于1985年達到占比的最高峰（36.9%）而後到2017年跌落至不足1%。大部分出口商品為棉紡織品以及服飾，也包含玩具和電子器械元件。在1999年回歸主權時，製造業，金融業，建造業以及房地產業是其經濟體的四大主體結構。因此，外界對於澳門轉型成全博彩業支撐經濟體存在很多擔心和疑惑，這也引起了當地政府的重視並計劃重新時期經濟結構多元化。
   
   Macau is one of the most essential cores of "The Guangdong-Macao In-Depth Cooperation Zone in Hengqin." The cooperation aims to diversify Macau's economic structure, focusing on technological research and development, high-tech manufacturing, Chinese medicine, Macau entertainment, and the modern financial industry. The companies which meet certain conditions will be taxed at 15%. For the experts and professionals working in the cooperation, the above 15% part will be exempted. The cooperation zone focuses on building a new developed and high-standard mechanism, except for the goods that are regulated for no exemption. All other goods can be exempted from entering. The in-and-out of people, financial regulation, and market is highly flexible, guaranteeing the convenience and freedom of cash flow, capital flow, and information flow.
   澳門隸屬於橫琴粵澳深度合作區的核心之一。合作區著力發展促進澳門經濟適度多元的新產業，聚焦發展科技研發和高端製造產業、中醫藥等澳門品牌工業、文旅會展商貿產業和現代金融產業，對符合條件的產業企業按15%的稅率徵收企業所得稅，對在合作區工作的境內外高端人才和緊缺人才，其個人所得稅負超過15%的部分予以免征。合作區著力構建與澳門一體化高水準開放的新體系，除國家法律、行政法規明確規定不予免（保）稅的貨物及物品外，其他貨物及物品免（保）稅進入，人員進出高度便利，創新跨境金融管理，建立高度便利的市場准入制度，促進國際互聯網資料跨境安全有序流動，實現與澳門人流、物流、資金流、資訊流等高效便捷流動。

2. Project in Brief
   項目簡介

   A client of TKEG China has started developing a long-planned microchip factory project in Macau, with a total estimated investment of 10 billion CNY (1.6 billion USD) and a secured investment of 7 billion CNY (1.1 billion USD). The project will be led by an ex-TSMC expert and a board of experienced professionals from a multidisciplinary background. The project will not only mitigate the vacancy of the manufacturing industry in Macau but also fill the massive demand from both China and the international market for microchips.
   一位奕資（中國）有限公司的客戶計劃在澳門開啓芯片製造工廠的計劃，計劃總投資額100億人民幣（16億美元），已敲定投資額70億人民幣（11億美元）。此項目將不僅彌補澳門在製造業方面的虧空，同時也將滿足來自中國和國際市場對於芯片供應的巨大需求。該項目將由一位之前曾供職於台灣積體電路製造有限公司的專家和一個來自於各領域的經驗從業者組成的核心團隊的帶領下展開。

2

Market & Industry Analysis
市場及行業分析

1. Microchip Industry Introduction
   半導體行業簡介

   
   The microchip industry chain mainly comprises microchip materials, equipment/technology partners, and consumers. The first two are used primarily in chip designing, chip manufacturing, packaging & testing, and assembling the final products. After that, the final products will be delivered to customers/system manufacturers. They will support customers in using the final products.
   半導體産業鏈主要由半導體材料，半導體設備/技術合作夥伴和消費者組成。前兩者主要作用在芯片設計，芯片制造，封裝測試，組裝成品階段，之後成品交付給客戶/系統廠商，最後由消費者進性使用。
   
   There are three common modes in the microchip industry: IDM (Integrated Device Manufacture), Fabless, and Foundry.
   半導體行業常用的運作模式有三種：垂直整合制造，無晶圓和晶圓代工。

   1. IDM: In this mode, the manufacturer integrates chip designing, manufacturing, packaging, and testing. This is the model adopted by most IC companies at the beginning of this industry, but currently, only a few companies can maintain it. In this mode, the collaborative optimization of designing, manufacturing, and other parts will help the companies deeply explore the technological potential and start new techniques ahead of others. However, such a company is too large to handle the balance between cost in management and operation, and revenue. As a result, they usually perform poorly at Return on Invested Capital.
      垂直整合制造模式：這種模式中，廠商集芯片設計、制造、封測于一身。這是早期多數集成電路企業采用的模式，但是目前僅有極少數企業可以維持。這樣的模式下，設計、制造等環節協同優化，有助于充分發掘技術潛力，也有條件率先實驗並推進新的半導體技術。但是這樣的公司規模龐大，管理成本較高，運營費用較高，導致資本回報率偏低。

   2. Fabless: In this mode, manufacturers are only responsible for the circuit design and sales of the chip. All other processes, such as production, testing, and packaging, are outsourced. Such manufacturers have lighter assets, smaller initial investment scales, lower entrepreneurial difficulty, lower operating costs, and more flexible transformation. However, this mode cannot achieve collaborative optimization compared with IDM, so it can't complete the design with strict indicators. What's more, compared with Foundry, this mode needs to figure out much more market risks.
      無晶圓模式：這種模式下，廠商只負責芯片的電路設計與銷售，而生産、測試、封裝等環節全部外包。這樣的廠商資産較輕，初始投資規模小，創業難度低，企業運行費用較低，轉型也相對靈活。但是與IDM相比無法與工藝協同優化，因此難以完成指標嚴苛的設計，與Foundry相比需要承擔各種市場風險。

   3. Foundry: In this mode, manufacturers are not responsible for chip design but for manufacturing, packaging, and testing. Manufacturers can provide services for multiple design companies simultaneously but are also subject to competition between companies. This manufacturer does not risk decision-making due to inaccurate market research or product design defects. However, the investment scale of such manufacturers is relatively large, and the cost of maintaining a regular operation production line is relatively high. Besides that, continuous investment is required to update technology. Once one falls behind, it has few chances to catch up with the technology trend.
      晶圓代工模式：這種模式下，廠商不負責芯片設計，只負責制造或封測，可以同時爲多家設計公司提供服務，但是受制于公司間的競爭關系。這種廠商不承擔由于市場調研不准、産品設計缺陷等決策風險。但是廠商投資規模較大，維持生産線正常運作費用較高，需要持續投入維持工藝水平，一旦落後追趕難度較大。
      

   The Chinese market needs more powerful product companies: The full scale of the Chinese microchip market has exceeded US$220 billion by 2020, but the self-sufficiency rate is only 10%. The improvement can be pretty huge. The self-sufficiency rate of Chinese integrated circuits continued to increase by 10% in 2017 and is expected to increase to 18.8% in 2025. Chinese integrated circuit scale will rise from 19 billion U.S. dollars to 67.5 billion U.S. dollars.
   中國市場需要更強大的産品公司：目前中國半導體市場總規模至2020年已超過2200億美元，但自給率僅10%，提升空間巨大。中國集成電路自給率持續提高：2017年爲10%，預測2025年有望提升至18.8% 。中國集成電路規模要從190億美元提高到675億美元。
   
   The main microchip products can be divided into discrete devices and integrated circuits. Discrete devices can be divided into optoelectronic devices, transducers, and discrete devices. Integrated circuits can be divided into digital ICs, analog & digital-analog hybrid ICs. The specific classification is as in Image Two。
   半導體主要産品可以分爲分立器件和集成電路。其中分立器件可以分爲光電器件，傳感器和分立器件。集成電路包含數字IC，模擬與數模混合IC。具體分類如圖二。
   
   China currently lacks native non-memory IC technology. There are now no significant manufacturers of analog, mixed-signal, server MPUs, MCUs, or dedicated logic ICs in China. Foreign IC manufacturers dominate these market segments with decades of experience and thousands of employees. Foreign manufacturers occupied over half of China's IC market last year. According to IC Insights, it will take decades for Chinese companies to be competitive in non-memory IC products.
   中國目前缺乏本土的非內存IC技術。目前中國沒有主要的主要的模擬、混合信號、服務器MPU，MCU或專用邏輯IC制造商。這些細分市場由擁有數十年經驗和數千名員工的根深蒂固的外國IC生産商主導，占去年中國IC市場的一半以上。IC Insights認爲，中國公司要在非內存IC産品領域中獲得競爭力，需要數十年時間。
   
   The characteristics of the analog and digital-analog hybrid chip industry:
   模擬與數模混合芯片行業特點：

   1. Analog chips (including digital-analog hybrid chips) have a long life cycle, a wide range of applications, and stable prices. Therefore, the leading position of the analog chip industry is relatively stable, but the potential market space is enormous.
      模擬芯片（包含數模混合芯片）生命周期長，應用領域繁多，並且價格穩定。因此模擬芯片行業龍頭地位較爲穩固，但市場空間巨大。

   2. The growth rate of analog chips is higher than the industry average. The main growth drivers come from developing new energy vehicles, the Internet of Things, and the 5G communications industries.
      模擬芯片增速高于行業平均。主要增長動力來自新能源汽車、物聯網、5G通信行業的發展。

   3. The analog chip is mainly based on mature technology, with fewer restrictions, more significant differentiation, and a wide variety of analog chips. Unlike most digital chips, the development of analog chip technology does not depend on Moore's Law. The story of this technology is mainly based on the number of experiments and the accumulation of technical experience in materials. The essential part of analog chips is stability and cost.
      模擬芯片以成熟工藝爲主，限制較少、模擬芯片差異化較大、種類繁多。不同于大部分數字芯片，模擬芯片技術發展不依賴于摩爾定律，技術發展主要以實驗的次數、對材料等的技術經驗的積累爲主。模擬芯片更加注重穩定和成本。

   4. Analog chips are mainly concentrated and used in the 40/28nm and above processes. The equipment required is relatively low in price, relatively high in process autonomy, technically tricky, and hard to start, so the profits are relatively high. Moreover, the market demand has been strong for a long time, and the domestic and foreign markets are enormous.
      模擬芯片常用工藝大多集中在40/28nm及以上的制程，其所需的設備價格相對較低、工藝自主性相對高，技術難度大，進入門檻高，因此利潤也相對較高。且市場需求長期走強，國內、外市場巨大。

   5. The analog chip industry is currently proliferating and is highly concentrated. Driven by the three significant applications of power management, signal conversion, and automotive electronics, the compound annual growth rate of the analog chip market will reach 7.4% from 2018 to 2023, which is better than the overall IC market's 6.8%. Among them, signal chain accounts for 30%, and power management accounts for 70%. The scale of the global analog chip market in 2017 was 54.5 billion U.S. dollars; it is estimated that by 2022, the market size will reach 74.8 billion U.S. dollars.
      模擬芯片行業目前增長迅速、集中度高。在電源管理、訊號轉換與汽車電子三大應用的帶動下，模擬芯片市場在2018~2023年的複合年增率將達到7.4%，優于整體IC市場的6.8% 。2017年全球模擬芯片市場的規模爲545億美元，預估到2022年時，市場規模將達到748億美元。其中信號鏈占比30%，電源管理占比70%。
      

2. collaborative integrated circuit manufacturing (CDIM) Mode Introduction
   協同集成電路製造模式简介

   The C in CIDM stands for Commune, which means sharing. Using vertical integration in sharing resources is a way to combine different parts, including design, manufacturing, packaging & testing, modules, as well as the technical authorization, materials, equipment, and other resources required by each link of the industrial chain. Based on that, enterprises use customer products as the orientation to produce customized products that are needed for the market and build a complete IDM company with joint investment. As a result, companies can combine enterprise resources, production, and investment to provide customized products.
   CIDM中的 C 代表了Commune，就是共享、共有。利用資源共享共有的方式，垂直整合包括 設計、制造、封裝測試、模組，以及産業鏈各環節需要的 技術授權、材料、設備等資源，以客戶産品爲導向，生産市場需求的客制化産品，共同聯合投資建設一個完整的IDM公司，企業資源整合、聯合生産、共同投資，提供客制化的産品。
   
   Using CIDM mode effectively can provide:
   協同集成電路製造模式的有效運用可以：

   1. Help companies quickly realize the integration and utilization of key resources to form competitiveness.
      幫助企業快速實現關鍵資源的整合利用，形成競爭力。

   2. Shorten the cycle of product definition and market launch.
      縮短産品定義和推向市場的周期。

   3. Achieve high reliability especially for analog/digital-analog hybrid chip products.
      實現特別是模擬/數模混合芯片産品的高可靠性。

Graph One (100 billions USD) / 表一 （千億美元）

Graph Two / 表二 - (Data source: IC Insights,Southwest Securities Co., Ltd.)
(數據來源：IC Insights，西南證券整理）

View fullsize

Image One
圖一

3

China encourages Semiconductor Industry
中國鼓勵半導體相關產業

1. The Important Position of China in the Global Supply Chain [1]
   中國在全球電子供應鏈中的重要地位

   China is the largest manufacturing hub in the world, producing 36 percent of the world's electronics, including smartphones, computers, cloud servers, and telecommunications infrastructure. It consolidates China as the largest node in the global electronics supply chain. In addition, China is the second largest final consumer market among nearly one-fifth of the world's population.
   中國是世界上最大的制造樞紐，生産世界上36％的電子産品包括智能手機，計算機，雲服務器和電信基礎設施將該國鞏固爲全球電子供應鏈中的最大節點。此外，在世界上近五分之壹的人口中，中國是第二大最終消費市場 。
   
   The driving force behind these changes is a highly globalized semiconductor and ICT supply chain, where local and multinational contract electronics manufacturers import semiconductors in China and assemble them into technology products for re-export or sale in the domestic market for final consumption. In 2020, China imported up to 378 billion US dollars of semiconductors, assembled 35% of the world's electronic equipment, accounted for 30% to 70% of global exports of televisions, computers, and mobile phones, and consumed a quarter of the semiconductor electronic products. Access to this enormous market is critical to the success of any globally competitive chip company today and in the future.
   這些變化背後的推動力是高度全球化的半導體和ICT供應鏈，中國本土和跨國合同電子制造商在中國進口半導體，然後組裝成技術産品，再出口或在國內市場銷售，以供最終消費。2020年，中國進口了高達3780億美元的半導體，組裝了世界上35%的電子設備，占全球電視、電腦、手機出口的30%~70%，消耗了四分之壹的半導體電子産品。進入這個巨大的市場對于當今和未來任何具有全球競爭力的芯片公司的成功都是至關重要的。

2. Main Policies in China Semiconductor Industry [2]
   中國半導體主要政策

   1. Government Policy: Policy support for China's semiconductor industry can be divided into three stages:
      政府政策：中國半導體產業的政策支持可分為三個階段：

      • 1960-2000: The State Council of China established the "Leading Group for Electronic Computers and Large-scale Integrated Circuits," Project 908, Project 909, and other policies, and began to establish wafer production lines in China.
        1960-2000年：中國國務院成立“電子計算機和大規模集成電路領導小組“，908工程，909工程等政策，開始建立中國的晶圓產線。

      • 2000-2014: National Development "No. 18 Document", 01 unique projects, 02 special projects, and various tax preferential policies. During this period, China mainly developed China's industrial chain and encouraged research and innovation.
        2000-2014年：國發“18號文”，01專項，02專項和各項稅收優惠政策，這期間主要發展中國產業鏈的配套環節並且鼓勵研發創新。

      • 2014-present: Issued the 13th Five-Year National strategic emerging industry development plan and comprehensively encouraged and supported the autonomy and controllability of the semiconductor industry from the market and other aspects.
        2014至今：頒布十三五國家戰略新興產業發展規劃，從市場等方面全面鼓勵和支持半導體產業的自主可控性。

   2. National Integrated Circuit Industry Development Investment Fund
      國家集成電路產業發展投資基金

      • At the heart of China's semiconductor Industry policy is the National Integrated Circuit Industry Development Investment Fund, or “the big Fund." The fund was set up in 2014 with $21 billion in state-backed financing.
        中國半導體産業政策的核心是國家集成電路産業發展投資基金(大基金)。該基金成立于2014年，由國家支持融資210億美元。

      • The first phase of the fund is mainly invested in the semiconductor industry, including manufacturing, design, sealing, and testing of industry-leading enterprises.
        大基金一期主要投向半導體產業中游，包括製造，設計，封測的行業龍頭企業。

      • Phase II mainly invested upstream and downstream, targeting equipment, materials, and other enterprises. The investment style is more flexible, investing in leading enterprises in the industry, investing with leading enterprises, and setting up joint venture subsidiaries.
        大基金二期主要投向上游和下游瞄準設備材料等企業。投資風格更加靈活，不僅投資行業龍頭企業，還會與龍頭企業共同投資並設立合資子公司。

3. Semiconductor Industry Policy in China [1]
   中國半導體的產業政策

   
   The Chinese government has long had industrial policies to support its nascent chip industry, but those efforts accelerated in 2014 with China's National Integrated Circuit Promotion Guide, which sets ambitious targets for industry revenue, capacity, and technological progress. A year later, China released its controversial made in China 2025 initiative, which put an ambitious target for the country to achieve 70 percent self-sufficiency in semiconductors by 2025. The National Integrated Circuit Industry Development Investment Fund, or "Big Fund," is at the heart of China's semiconductor Industry policy. The fund was set up in 2014 with $21 billion in state-backed financing. Significant funds received a second round of state financing of more than $35 billion in 2019. So far, the China National Integrated Circuit Fund has invested $39 billion, 69.7% of which has been spent on front-end manufacturing to increase China's share in global semiconductor production. In addition, China has announced more than 15 local government IC funds to finance Chinese semiconductor companies, totaling $25 billion. Including national funds, the total amounted to $73 billion, unmatched by any other country. However, that does not include government grants, equity investments, and only $50 billion in low-interest loans.
   中國政府長期以來壹直有産業政策來支持其新興的芯片産業，但這些努力在2014年加速，因爲中國發布了《國家集成電路推廣指南》，爲行業收入、産能和技術進步制定了雄心勃勃的目標。壹年後，中國發布了備受爭議的《中國制造2025》，爲中國在2025年前實現半導體70%的自給率設定了雄心勃勃的目標。中國半導體産業政策的核心是國家集成電路産業發展投資基金 (National Integrated circuit Industry Development Investment Fund，簡稱“大基金”)。該基金成立于2014年，由國家支持融資210億美元。大基金在2019年獲得了第二輪超過350億美元的州融資。截至目前，中國國家集成電路基金已投資390億美元，其中69.7%用于前端制造，目標是提高中國在全球半導體生産中的份額。此外，中國還宣布了15個以上的地方政府IC基金，用于資助中國半導體企業，總額達250億美元。加上國家基金，總額達730億美元，是任何其他國家都無法比擬的。然而，這還不包括政府撥款、股權投資和僅500億美元的低息貸款。 
   
   In China's newly released 14th Five-Year plan, semiconductors are identified as a strategic technological priority, calling for the whole of society to strive to "achieve technological self-reliance." In August 2020, China further expanded its preferential semiconductor policy, which includes an enterprise tax exemption for up to 10 years for semiconductor manufacturers that can exceed $2 billion. In 2020, more than 22,800 new semiconductor companies were established in China, an increase of 195% from 2019.
   在中國新發布的第14個五年計劃中，半導體明確地確定爲壹個戰略技術優先權，要求全社會努力“實現技術自力更生”。2020年8月，中國進壹步擴大了其半導體優惠政策，該政策包括最多可爲半導體制造商提供10年的企業免稅，這些制造商可超過20億美元。在2020年，中國建立了超過22,800家新的半導體公司，從2019年起增漲了195％。
   
   So far, most of the Chinese government's subsidies have gone to building fabs. Because of this support, Chinese companies have announced more than 110 new factory projects since 2014, with a total commitment of $196 billion. But the actual investment amount was significantly lower, and there were some apparent failures. Of these projects, 40 fabs have been built and are in operation, another 38 new production lines are under construction, and 14 projects have been suspended. As a result, the Chinese semiconductor industry is expected to spend $12.3 billion, with CAPEX of $15.3 billion in 2021 and 2022, respectively, accounting for 15% of the global total, and is expected to nearly double the installed chip capacity to about 19% of the global installed chip capacity in the next ten years.
   到目前爲止，中國政府的大部分補貼都用于建造晶圓廠。得益于這種支持，自2014年以來，中國企業已經宣布了110多個新工廠項目，承諾投資總額爲1960億美元。但實際投資金額明顯較低，而且出現了壹些明顯的失敗。在這些項目中，40個晶圓廠已經建成並正在運營，另外38個新生産線正在建設中，14個項目已經暫停。結果,中國半導體産業預計將花費123億美元,分別于2021年和2022年的資本支出153億美元,占全球總量的15%,預計近兩倍的晶片裝機容量在未來10年內達到大約19%的全球芯片裝機容量。

4. Prospect of Semiconductor Industry in China [3]
   中國半導體產業發展前景

   1. The rise of the downstream field, so that semiconductor demand increased
      下遊領域興起，使半導體需求增加

      • With the rise of downstream fields such as artificial intelligence and automotive electronics, the demand for semiconductors will continue to climb, driving the rapid development of China's semiconductor industry.
        伴隨著人工智能、汽車電子等下遊領域的興起，對半導體的需求將持續攀升，推動著中國半導體行業的快速發展。

   2. Industry supervision has been strengthened and the industry has developed in a standardized manner
      行業監管加強，行業規範化發展

      • With the rapid development of the industry, the development of the industry has entered a new stage, and the level of supervision continues to improve. In the future, we will promote the standardized development of the industry and maintain the market order and introduce a few weighty policies.
        隨著行業的快速發展，行業發展進入新階段， 監管力度持續提升。未來促進行業規範發展以 及維護市場秩序，出台多項重磅政策。

   3. Realize industrial technology autonomy
      實現産業技術自主

      • In recent years, the government has vigorously promoted the development of the semiconductor industry and promoted the wave of mergers and acquisitions in the semiconductor industry. With the deepening of the layout of China's semiconductor industry chain, it will realize technological autonomy and improve the semiconductor industry chain.
        近年來，政府大力推動半導體産業發展，推動著半導體行業並購潮，隨著中國半導體産業鏈布局的加深，將實現技術自主，完善半導體産業鏈。

   Reference

   1. ”盘点中国半导体行业-半导体行业协会". E-Sharoshi.Com, 2022, https://www.e-sharoshi.com/taking-stock-of-chinas-semiconductor-industry/

   2. 半導體產業政策梳理及展望. 粵開證券. https://pdf.dfcfw.com/pdf/H3_AP202102031458208534_1.pdf?1612388874000.pdf

   3. 中國半導體行業前景研究報告. 中商產業研究院. http://www.invest-data.com/eWebEditor/uploadfile/2018120122335332095041.pdf

   4. Graph: UN Comtrade; BCG x SIA: Strengthening the Global Semiconductor Supply Chain in an Uncertain Era

Global Semiconductor Sales by Geographic Area 2019 / 全球地理地區半導體銷售 2019 - By Headquatar of Electronic Device Maker / 電子產品製造商總部

Semiconductor Sales by Geographic Area 2019 / 全球地理地區半導體銷售 2019 - By Location of Electronic Device Assembled / 電子產品拼裝地點

Semiconductor Sales by Geographic Area 2019 / 全球地理地區半導體銷售 2019 - By Location of Electronic Device End Users / 電子產品最終用戶地點

Share of National IC Fund Phase 1 & 2 Investment by Segment / 國家集成電路基金第一期及第二期投資分類 - SIA Research

4

The Technological Application of the Project
項目科技運用

Focuses on digital-analog hybrid products and learns from world-class IDM companies
專注數模混合産品借鑒世界一流的垂直整合制造公司

1. Special Products: advanced power microchip devices and modules\high-end digital-analog hybrid chip\microcontroller MCU\digital signal processor (DSP)\microelectromechanical (MEMS)\biochip, etc.
   特殊産品：先進功率半導體器件與模組\高端數模混合芯片\微控制器MCU\數字信號處理器(DSP)\微機電(MEMS)\生物芯片等

2. Technical Features: At present, the most advanced digital-analog hybrid technologies of Texas Instruments and STMicroelectronics are all 40nm. But the design and craftsmanship are characteristic, difficult and profitable.
   技術特點：目前德州儀器與意法半導體公司的數模混合的最先進技術都是40nm。但設計與工藝有特點，難度大、利潤高。

3. Benefit Bonus: Texas Instruments’ gross profit margin in 2020 is 64.1%, which is higher than the gross profit margin of chip foundry (the global chip foundry leader TSMC’s gross margin in 2020 is about 50.9%, the largest domestic foundry company, SMIC's gross profit margin in 2020 is approximately 23.57%).
   效益加成：德州儀器 2020年的毛利率爲 64.1%，比芯片代工的毛利率高（全球芯片代工龍頭台積電2020 年的毛利率約爲 50.9%，國內最大的代工企業，中芯國際2020年的毛利率約爲 23.57% ）。

The project's operating model is product-centric and consists of five parts: IC design, IC manufacturing, packaging and testing, product assembly, and market/customer. The five parts are closely linked. First, market demand drives the IC design of customized products. Then using, design rules to calibrate process flow and cost control. After that, doing product-specific packaging and testing technology. Next, assemble customized products and modules. Finally, the quality and delivery time are guaranteed to meet market demand.
項目營運模式以産品爲中心，包含五個部分：IC設計，IC制造，封裝測試，産品組裝和市場/客戶。五個部分緊密相連，首先是以市場需求來帶動IC設計定制化産品，接著以設計規則校准工藝流程與成本控制，然後進行産品專屬的封裝與測試技術，之後客制化組裝産品與模組，最後保證品質與交期滿足市場需求。

1. Project overall planning:
   項目整體規劃:

   1. Establish a strong core team, including experts in logic, analog, digital-analog hybrid, advanced power and other technical backgrounds.
      組建實力雄厚的核心團隊，包括邏輯、模擬、數模混合、先進功率等技術背景的專家。

   2. Form alliances with international advanced manufacturers and become technology (IP, etc.) source and order partners.
      與國際先進廠商結盟，成爲技術 (IP等) 來源與訂單合作夥伴。

   3. Development of CIDM (shared IDM) companies with distinctive products. The core resources and technical capabilities should be the digital-analog hybrid special technology and collaborative optimization of design process.
      發展具有特色産品的 CIDM（共享共有的IDM）公司。核心資源和技術能力應該是數模混合特殊技術和設計工藝協同優化。

   4. R&D and production of mid-to-high-end analog and digital-analog hybrid products that are not yet available in China. The target application areas are mainly: automotive electronics/charging piles, intelligent home appliances/IoT, industrial electronics/power transmission, and biomedical chips.
      研發與生産國內尚無法供應的中高端模擬和數模混合産品。目標應用領域主要是：汽車電子/充電樁，智能家電/IoT，工業電子/電力輸送，生物醫療芯

2. Market Potential
   市場前景

   This Macau Microchip project will not only thrive Macau's manufacturer but also compensate for the lack of indigenous non-memory IC technology. On the demand side, microchips will maintain strength as technology develops, and more electronics need to adopt microchips.
   澳門芯片項目將不僅振興澳門萎靡的製造業，同時也將彌補中國本土IC非記憶芯片技術的缺陷。從市場需求角度來看，在科技發展以及越來越多的電子器械需要使用芯片的語境下，市場對於芯片的需求也將繼續維持搶儘的勢頭。
   

3. Project Advantages:
   項目優勢

   1. High R&D Ability: The core team members of this project have published over 200 research papers in international journals, with about 1000 patents in the semiconductor industry, including multiple patents about the foundation of semiconductors. The project aims to apply for over 100 patents before the factory is fully functional and at least 230 patents after the factory is fully functional.
      深厚的團隊研發能力：該項目的核心團隊已經在國際期刊發表了超過 200 篇專業論文，發表半導體專利 1000 余個，其中包括多個半導體基礎專利。項目預計在投產前申請超過 100 個專利，并在投產後每年至少申請 230 個專利。

   2. Authorized IP Protection: the project will introduce the IP of world-leading semiconductor enterprises as authorization and protection.
      授權技術保護：該項目將引進世界領先的半導體企業完整技術作爲工藝技術的授權和保護。

   3. Experienced and Professional Team: the experiences and expertise, including both R&D and manufacture, are the safeguard of the project.
      豐富的團隊經驗：團隊在業界的資歷，包括研發和量產，是本項目的核心後盾。

   4. Open-sourced Technology: the project will share the IP with partners, aiming to the better and faster product promotion.
      共享技術：該項目將與合作夥伴共享知識產權，力求更快更好的產品升級。

4. Market Adaptation:
   市場應用

   1. Power Product
      功率產品

      • The scale of MOSFET and IGBT will reach 15 billion USD by 2024, with 40% of the market is from China.
        預計在2024年，MOSFET與IGBT市場份額將達到150億美元，其中40%的市場來自於中國。

      • Renewble energy vehicles: the most emerging market, including both vehicles and charging station.
        新能源汽車：最新興的市場，包括新能源汽車以及配套充電樁。

   2. Industrial semiconductor: control voltage, current and frequency.
      工業級半導體：負責控制電壓，電流與頻率。

      • MCU Microcontroller: MCU is widely used in electronics, industrial control, vehicle electronics, aritficial intelligence, internet of things. Currently the domestic MCU product is mostly low-standard, and high standard MCU is heavily relied on import. In 2018, China takes 25% of global MCU market.
        MCU廣汎運用於消費電子，工業控制，汽車電子，人工智能，物聯網。目前國内主要生產低端MCU產品，高端MCU產品極大程度上依賴於進口。在2018年，中國佔據了國際MCU市場的25%。

      • The core team has close relationship with global-leading MCU suppliers.
        團隊與國際領先的MCU供應商有緊密的合作關係。
        

   3. Contact Image Censor (CIS)
      圖像傳感器

      • By forecast, the global market of CIS will reach to 22 billions USD by 2024.
        根據預測，圖像傳感器的國際市場將在2024年之前達到220億美元。

      • Our project aims to work with world-leading CIS supplier, produce the products can be used by vehicle-based cameras, achieve the goal of adaption in machine vision, autopilot, driver monitoring, system monitor.
        本項目計劃與全球頂級CIS供應商合作，生產可以用於車載攝像頭的產品，以實現在機器視覺，自動駕駛，駕駛監控和系統顯示等技術上的應用。

   4. Microelectro Mechanical Systems (MEMS)
      微機電傳感器

      • By 2023, the market of MEMS will reach 258 billions USD, the market is currently monopolized by abroad manufacturer and highly concentrated.
        MEMS市場份額將在2023年達到2580億美元，目前MEMS市場處於高度集中且被國外製造商壟斷的階段。

5

Potential Competitors
潛在競爭對手

1. Similar Competitors in Mainland China[1]
   中國大陸同類競爭對手

   After years of a state-led drive to achieve "semiconductor independence," many Chinese companies have started 2021 with a chip side gig. The list of those trying is a corporate who's-who: Baidu, Alibaba, smartphone brands Huawei, Xiaomi, and Oppo, and home appliance brands Gree, Midea, TCL, and Haier.
   經過多年由國家主導的實現“半導體獨立”的努力，許多中國企業在2021年伊始就開始了芯片兼職。參與其中的企業包括:百度、阿裏巴巴，智能手機品牌華為、小米和Oppo，以及家電品牌格力、美的、TCL和海爾。
   
   They join an increasingly crowded space. In 2020, over 22,000 new semiconductor companies were registered in China, according to data firm Qichacha. In the first two months of 2021, there were 4,350 more.
   它們加入了一個日益擁擠的空間。根據數據公司Qichacha的數據，2020年，中國註冊了超過2.2萬家新的半導體公司。在2021年前兩個月，又有4350人。
   
   Many reasons lie behind this nationwide frenzy, primarily the Chinese government's urgent determination to reduce reliance on imported chips. In 2020, China imported $350 billion worth of chips, accounting for one-sixth of total imports. In the race to become a tech superpower, semiconductors are a key factor holding the country back. China can mass-produce almost anything, but microchips, especially high-end ones, are still beyond its reach. To change that, China established a $22 billion investment fund in 2014 and added $29 billion to it in 2019, although little has come of it so far.
   這種全國性的狂熱背後有許多原因，主要是中國政府迫切決心減少對進口芯片的依賴。在成為技術超級大國的競爭中，半導體是阻礙韓國發展的關鍵因素。2020年，中國進口了價值3500億美元的芯片，佔進口總額的六分之一。中國幾乎可以批量生產任何產品，但微芯片，尤其是高端芯片，仍是遙不可及。為了改變這種狀況，中國在2014年設立了一個220億美元的投資基金，併在2019年增加了290億美元，盡管到目前為止收效甚微。
   
   So far, these semiconductor side hustles concentrate on the design process, where technological barriers are easier to overcome. The actual fabrication is still outsourced to foreign foundries run by Samsung or Chinese Taipei Semiconductor Manufacturing Company. Even if big Chinese companies can make breakthroughs in chip design, they are still far away from achieving the nationwide goal of complete independence.
   到目前為止，這些半導體副業都集中在設計過程上，在設計過程中技術障礙更容易克服。實際生產仍外包給三星(Samsung)或臺積電(Taiwan Semiconductor Manufacturing Company)運營的外國代工廠。即使中國的大公司能夠在芯片設計上取得突破，他們仍遠未實現完全獨立的全國性目標。

   
   From a business perspective, the moves still make sense. For some companies, it de-risks their supply chains. The U.S. sanctions preventing Huawei from purchasing chips from American companies offer a cautionary tale. Even for brands in less sensitive fields, the global chip shortage that started this year is another reminder that international suppliers can quickly become very unreliable. For tech companies like Baidu and Alibaba, both of which are doing cutting-edge work in cloud computing and artificial intelligence, a self-designed chip can cater to specific internal needs better than a chip purchased from another maker.
   從商業角度來看，這些舉措仍然有意義。對一些公司來說，這降低了供應鏈的風險。美國阻止華為從美國公司購買芯片的制裁提供了一個警示。即使對不那麽敏感領域的品牌來說，今年開始的全球芯片短缺也再次提醒人們，國際供應商可能很快變得非常不可靠。對於百度和阿裏巴巴這樣在雲計算和人工智能領域從事尖端工作的科技公司來說，自主設計的芯片比從其他制造商購買的芯片更能滿足特定的內部需求。
   
   Home appliance makers traditionally import chips to power televisions, air conditioners, and refrigerators, although these chips are usually lower-tech. The rise of the Internet of Things technologies is changing that. Connecting to Wi-Fi or 5G networks or incorporating audio operating systems requires that the chips used in home appliances become more sophisticated.
   傳統上，家電制造商需要進口大量芯片來為電視、空調和冰箱供電，盡管這些芯片的技術含量通常較低。物聯網技術的興起正在改變這一點。如果想連接Wi-Fi或5G網絡，或安裝音頻操作繫統，家電用芯片必須變得更加精密。
   
   Appliance makers TCL, Konka and Midea — all household names in China — have set up subsidiary semiconductor companies in a flurry of activity starting in 2018.
   從 2018 年開始，家電制造商TCL、康佳和美的——這些在中國家喻戶曉的品牌——紛紛成立了子公司半導體公司。
   
   By contrast, Huawei started its semiconductor research more than two decades before U.S. sanctions. In 2004, Huawei built a separate company, HiSilicon, to focus on chipmaking, a decision doubted by many and followed by no one. Throughout the years, HiSilicon has released a different set of chips that can be used in smartphones, servers, or wearable gadgets. It's now the only Chinese company seen as a serious contender in the global semiconductor industry.
   相比之下，華為在美國制裁前20多年就開始了自己的半導體研究。2004年，華為成立了一家名為HiSilicon的獨立公司，專註於芯片制造，這一決定遭到許多人的質疑，也沒有人跟進。多年來，海思康已經發佈了一套不同的芯片，可用於智能手機、服務器或可穿戴設備。它是目前唯一一家被視為全球半導體行業有力競爭者的中國公司。
   
   Other smartphone brands are taking a similar step. Xiaomi started investing in chipmaking in 2014 and launched its first chip three years later. Oppo only began its research and investment in semiconductors in 2019.
   其他智能手機品牌也在採取類似的舉措。小米從2014年開始投資芯片制造，三年後推出了首款芯片。Oppo從2019年開始在半導體領域進行研究和投資。

2. List of Similar Competitors in Macao
   澳門同類競爭對手

   There may be no significant local semiconductor or microchip companies in Macau, most of which are working with mainland China. For example, it has partnered with the State Key Laboratory of Analog and Mixed-signal VLSI at the University of Macau to produce chips. At present, our microchip has the advantage of geographical location (the factory is located in Hengqin, Guangdong province), policy support from mainland China (Hengqin Macau Deep Cooperation Zone), as well as being one of the few local microchip manufacturing factories in Macao (occupying market advantage). However, it is worth noting that if the chip factory wants to develop better, it needs to cooperate with traditional institutions or universities in Macao or with conventional institutions in Guangdong.
   目前澳門可能沒有主要本地的半導體或微芯片領域的公司，大多數情況都是與中國內陸進行合作。比如，與澳門大學成立的模擬與混合信號超大規模集成電路國家重點實驗室進行合作，共同生產芯片。目前，我們微芯片具有地理位置的優勢（工廠設立在廣東橫琴），也有中國內陸的政策支持（橫琴澳門深度合作區），同時也是為數不多的澳門本地的微芯片製造工廠（佔據了市場優勢）。但是值得注意的是，如果芯片工廠想要發展的更好，芯片工廠需要與澳門有權威的機構或大學進行合作，或者與廣東地區的權威機構進行合作。

Reference
參考

1. "Chinese Companies Are Making Their Own Chips". Protocol, 2022, https://www.protocol.com/china/chinese-companies-make-own-semiconductors

6

Impact of US's chip and science act on China's chip technology and global supply
美國芯片和科學法案對中國芯片技術和全球供應的影響

1. Overview of the US Chips and Science Act [1] [2]
   美國晶片和科學法案概述

   The United States CHIPS and Science Act seeks to revitalize American technology manufacturing and R&D sectors across the nation. Of the USD$280 billion total package, USD$52.7 billion has been earmarked for semiconductor design and production incentives, and the act has spurred other state-level policies to implement incentives such as tax credits to companies set up within their borders.
   美國晶片和科學法案，旨在振興美國全國的科技製造和研發部門。 在總額2800億美元的一攬子計畫中，527億美元被指定用於電晶體設計和生產激勵措施，該法案激勵了州一級的其他政策，也實施了激勵措施，例如對在其境內設立的公司實行稅收抵免。

2. Overview of Potential Impact on This Project [3]
   對本項目的潜在影響概述

   As part of the stipulations for companies wishing to receive American federal funding, the Act requires that they not build certain high-tech facilities in China. This could impact our client in various ways, including increased difficulty in establishing the manufacturing capabilities of the Macau factory and hurt sales of the microchips produced by the factory.
   作為任何希望獲得美國聯邦資金的公司的規定的一部分，該法案要求他們不得在中國建造某些高科技設施。 這可能會以多種方式影響該項目，包括新增澳門工廠製造能力的難度，並損害工廠生產的微芯片的銷售。

3. Increased Manufacturing Difficulties [3]
   製造難度增加

   As the act prohibits beneficiary corporations from operating and investing in high-tech semiconductor facilities in China, the Macau factory may face difficulties in procuring the necessary production equipment, manufacturing tools (lithography machines, etc.), and chip architecture designs from foreign firms. This could significantly damage the competitiveness of the products being outputted by the Macau factory.
   由於該法案禁止受益公司在中國經營和投資高科技電晶體設施，澳門工廠在從外國公司採購必要的生產設備、製造工具（光刻機等）和晶片架構設計方面可能面臨困難。 這可能嚴重損害澳門工廠輸出產品的競爭力。
   
   However, according to previous definitions and the exceptions listed in the Act, companies can continue to do business with "legacy semiconductors." This category includes chips produced by the 28nm process or older. This technology is sufficient for the client's power regulators, MOSFETs, and other microcontrollers. Furthermore, the advancements in China's manufacturing processes, especially those of SMIC to reproduce TSMC's 7nm production process, have shown promise of a domestic source of manufacturing know-how.
   然而，根據之前的定義和法案中列出的例外情况，公司可以繼續與“傳統電晶體”開展業務。這一類別包括28nm工藝或更早工藝生產的晶片。 對於客戶生產功率調節器、MOSFET和其他微控制器的目的，此科技已足够。 此外，中國自身制造技術的進步，特別是中芯國際在複製台積電7nm生產工藝方面的進步，表明了中國製造科技的國內來源的前景。
   

4. Risk of Loss of Business [1] [2] [4]
   業務損失風險

   As the production of the most advanced semiconductors moves out of China with the potential departure of production plants associated with Intel, TSMC, Micron, GlobalFoundries, and Qualcomm, this represents only a portion of possible losses to the Chinese microchip manufacturing industry.
   隨著最先進電晶體的生產遷出中國，與英特爾、台積電、美光、GlobalFoundries和高通公司相關的生產廠可能離開，這只代表了中國微芯片製造業可能遭受的部分損失。
   
   For our client, this represents a risk of potential customers turning to top foreign manufacturers for their microchip needs and a loss of sales of the factory's output.
   對於我們的客戶來說，這意味著潛在客戶可能會轉向國外頂尖製造商，以滿足他們的微晶片需求，並導致工廠產量的銷售損失。
   
   However, there is also a promise that domestic heavyweights will abide by principles of supporting Chinese businesses so that additional sales may return any losses to Chinese enterprises.
   然而，也有人承諾，國內權重股將遵守支持中國企業的原則，囙此，任何損失都可能通過向中國企業追加銷售來彌補。
   

5. Potential Benefits [4]
   潜在利益

   As foreign chip manufacturers depart, their production demand stands to be taken over by domestic firms. Thus, our client is positioned to provide this lost semiconductor production capacity in many non-CPU-based or other use cases that do not require the most cutting-edge manufacturing processes.
   隨著外國晶片製造商的離去，他們的生產需求將被國內公司接管。 囙此，我們的客戶能够在許多不需要最先進制造技術的非CPU或其他用例中提供這種損失的電晶體生產能力。
   

6. Final Words
   最後

   The Chips Act focuses on investing in US industries. This does not directly affect our client's business but creates a minor disturbance in China's semiconductor industry. As with any noncompetitive international policy, the Act increases the difficulties faced by Chinese manufacturers, but this also creates opportunities for growth in other target markets.
   歸根結底，晶片法案的重點是投資美國工業。 這並不直接影響我們客戶的業務，而是對中國半導體行業造成了輕微的干擾。 與任何非競爭性國際政策一樣，該法案新增了中國製造商面臨的困難，但也為其他目標市場的增長創造了機會。

References
參考

1. FACT SHEET: CHIPS and Science Act Will Lower Costs, Create Jobs, Strengthen Supply Chains, and Counter China - The White House

2. https://www.forbes.com/sites/greatspeculations/2022/08/15/what-is-the-semiconductor-chips-act-and-why-does-the-us-need-it/?sh=414b79954c9c

3. https://asia.nikkei.com/Business/Tech/Semiconductors/CHIPS-Act-leaves-chipmakers-facing-choice-between-U.S.-and-China

4. US CHIPS Act 'economic coercion' against China; but won't succeed in changing global semiconductor industrial distribution: expert - Global Times

7

Strategic Positional Of The Guangdong-Hong Kong-Macao Greater Bay Area
粵港澳大灣區戰略佈局

1. Overview of the Electronics Manufacturing Climate in the GBA [1] [2]
   大灣區電子製造環境概述

   A significant contributor to the Macau Microchip Project's success would be its proximity to potential customers for the factory's products. While Macau may not be at the forefront of electronics manufacturing in China, the Macau Microchip Project's location in the heart of the Greater Bay Area (GBA) presents a good selection of potential customers.
   澳門微芯片項目取得成功的一大貢獻在於，該工廠生產的產品地理位置接近潛在客戶。 雖然澳門本身可能不是中國電子製造業的前沿，但澳門微芯片項目位於大灣區的中心地帶，為潛在客戶提供了一個充滿希望的選擇。
   
   Dongguan's 14th Five-Year Plan exemplifies more localized government initiatives prioritizing the future development of software and information services, new materials, new energy, biomedicine, high-end medical equipment, semiconductors, and integrated circuits. The GBA is also a key focus area for the Central Government's technology advancement initiatives, with significant investments coming in to help develop homegrown core technologies. EY Parthenon's headline index for the growth of the GBA's technology sector has thus tripled from 2013 to 2018.
   大灣區也是中央政府技術進步倡議的一個重點領域，大量投資將用於幫助開發自主核心技術。 囙此，2013年至2018年，安永帕台農集團對大灣區科技部門增長的總體指數新增了兩倍。東莞市第十四個五年計劃重點關注軟件和資訊服務、新材料、新能源、生物醫藥和高端醫療設備、電晶體和集成電路的未來發展，體現了更當地語系化的政府舉措。

2. Contextualizing GBA Manufacturing Hubs Relative to Macau [2]
   將大灣區製造中心與澳門聯系起來

   The GBA has a highly developed road network, with approximate travel times by road from the Hengqin area to the three manufacturing hubs being, on average:
   大灣區擁有高度發達的公路網絡，從橫琴地區到三個製造業中心的公路平均行程時間約為：

   • To Zhongshan: 1 hour
     到中山：1小時

   • To Dongguan: 2 hours
     到東莞：2小時

   • To Shenzhen: 2.5 hours
     到深圳：2.5小時

   These numbers are also subject to reduction pending changes in the usage policies of the Hong Kong-Zhuhai-Macau Bridge.
   在香港珠澳大橋使用政策發生變化之前，這些數位也可能會减少。

   Thus, a new microchip factory in Macau/Hengqin would be well placed in an area full of electronics manufacturers that could make use of the parts produced by the client's factory.
   囙此，在澳門/橫琴新建一家微芯片工廠，將很好地安置在一個充滿電子製造商的地區，可以利用客戶工廠生產的部件。
   

3. Breaking Down the Manufacturing Hubs: Shenzhen [2] [3] [4] [5]
   分解製造中心：深圳

   Shenzhen is known as "China's Silicon Valley," and many large electronics firms have a manufacturing presence in the city. Known brands include the likes of Huawei, BYD, ZTE, DJI, and world-renowned supplier Foxconn. Beyond name brands, secondary suppliers also have a significant presence that produces electronic parts such as power supplies, industrial equipment, computer motherboards, and other components.
   深圳被稱為“中國的矽谷”，許多大型電子公司在深圳都有生產基地。 知名品牌包括華為、比亞迪、中興、DJI和世界知名供應商富士康。 除了名牌之外，還有大量的二級供應商，他們生產電子部件，如電源、工業設備、電腦主機板和一整套其他組件。

   With a secondary industry dominated by electronics manufacturing taking up 37.8% of its ¥2.767 trillion GDP, Shenzhen has many promising customers for MOSFET, IGBT, MCU microcontroller, and other industrial semiconductor products. BYD and other electric car startups also present opportunities for our client to supply microchips for these renewable energy/electric vehicle production lines.
   第二產業以電子製造業為主，占其2.767萬億日元GDP的37.8%，深圳將為MOSFET、IGBT、MCU微控制器和其他工業電晶體產品提供許多有潜力的潛在客戶。 比亞迪和其他電動汽車初創企業的出現也為我們的客戶提供了為這些可再生能源/電動汽車生產線提供微芯片的機會。
   

4. Breaking Down the Manufacturing Hubs: Dongguan [2] [6]
   打破製造中心：東莞

   Dongguan, as a manufacturing base in Guangdong, is behind only Shenzhen in total exports. Many electronic parts suppliers are based here, many of which go into name-brand product packages. Notable outputs are headphones and various electronic chargers, which could also serve as an opportunity for the Macau factory to supply its microchips.
   東莞作為廣東的製造業基地，出口總額僅次於深圳。 許多電子部件供應商都設在這裡，其中許多隨後進入名牌產品的包裝。 值得注意的產品是耳機和各種電子充電器，這也為澳門工廠提供了供應其微芯片的機會。

   Dongguan is thus another valuable and nearby source of potential cusomers for our client's products.
   囙此，東莞是我們客戶產品的另一個有價值的潛在客戶來源。
   

5. Breaking Down the Manufacturing Hubs: Zhongshan [2] [8]
   分解製造中心：中山

   While Zhongshan has the lowest total output in its manufacturing sector, it is the closest of the three. This presents opportunities for our client to compete with much lower logistical costs.
   雖然中山的製造業總產值最低，但在三個行業中最接近。 這為我們的客戶提供了與低得多的物流成本競爭的機會。

   Zhongshan is also home to a variety of different electronics manufacturers. A standout category is lighting products, including bulbs, tube lights, and LEDs. As LEDs utilize power controllers, Zhongshan's lighting industry stands to be another solid avenue for potential customers of the Macau factory.
   中山還擁有各種不同的電子產品製造商。 一個突出的類別是照明產品，包括燈泡、管燈和LED。 由於LED採用了電源控制器，中山的照明行業將成為澳門工廠潛在客戶的又一條堅實途徑。
   

6. Concluding Remarks
   最後

   As China invests in the electronics industry, these Guanggong manufacturers will only increase their appetite for microchips to go into their products. Thus, save from being located in Shenzhen, Dongguan, or Zhongshan, the Macau/Hengqin area is a relatively close location that will likely allow the factory to compete with logistics costs.
   隨著中國對電子行業的投資，這些廣工製造商只會新增他們對微芯片進入其產品的胃口。 囙此，除了位於深圳、東莞或中山以外，澳門/橫琴地區是一個相對較近的位置，可能會讓工廠與物流成本競爭。

   Finally, as the product lines at the Macau factory have not yet been finalized, the actual customers may differ depending on that decision.
   最後，由於澳門工廠的生產線尚未最終確定，實際客戶可能會因該决定而有所不同。

References
參考

1. Strategy for a tech-driven Greater Bay Area | EY China

2. Top 30 China Manufacturing Cities You Should Know About (ejet.com)

3. Inside Shenzhen: China's Silicon Valley | Cities | The Guardian

4. Guangdong-Hong Kong-Macao Greater Bay Area - Map(Shenzhen)

5. Shenzhen manufacturers and suppliers list- Made-in-China.com page1

6. Dongguan (Guangdong) City Information | HKTDC Research

7. Guangdong-Hong Kong-Macao Greater Bay Area - Map(Dongguan)

8. Guangdong-Hong Kong-Macao Greater Bay Area - Map(Zhongshan)

8

Strategic Positioning of the Hengiqn Guangdong-Macao In-Depth Cooperation Zone
橫琴粵澳深度合作區戰略佈局

Chip factories can benefit from resources in Macao and Zhuhai and get more policy dividends from Macao. The location of the Macau Microchip factory in Hengqin has a tremendous geographical advantage because Zhuhai is also trying to build a new economic zone around Hengqin Shenhe District. For example, the industrial belt matching Macao's capital and emerging industries in the surrounding area is an extension of Shenhe District. At the same time, Hengqin has limited land available for development, so in the long run, Macao enterprises will move more manufacturing plants to the "second line" of Shenhe District. At this time, the hinterland of western Zhuhai can take this significant opportunity with the advantage of space and convenient transportation networks such as Honghe Bridge and Jinhai Bridge. In this way, the location of the chip factory has excellent potential for development in the future.
芯片工廠建在橫琴有很大的地理優勢，原因是珠海也正在努力打造環橫琴深合區的新經濟區域，比如在周邊配套和澳門的資本以及新興產業相配套的產業帶來作為深合區的外圍延伸。芯片工廠可以借助澳門和珠海的資源從而獲得利益以及獲得更多來自澳門的政策紅利。同時，橫琴可供開發的土地有限，所以長久來看，澳門企業肯定會更多地把製造工廠向深合區「二線」外遷移，此時，珠海西部腹地便可借助空間優勢及洪鶴、金海大橋等便捷的運輸網絡承接這一重要機遇。這樣一來，芯片工廠的地理優勢在未來非常有發展潛力

1. Introduction [1]
   簡介

   On September 5, 2021, The Chinese mainland officially announced the "General Plan for the Construction of Hengqin Guangdong-Macao In-depth Cooperation Zone," specifying that the implementation scope of Hengqin Guangdong-Macao In-depth Cooperation Zone is the customs supervision area between the "first-line" and "second-line" of Hengqin Island, with a total area of about 106 square kilometers. Hengqin and other People's Republic of China areas are designated as the "second line." The line between Hengqin and Macao Special Administrative Region is set among them.
   中國大陸于2021年9月5日正式公布《橫琴粵澳深度合作區建設總體方案》，明确橫琴粵澳深度合作區實施範圍爲橫琴島“一線”和“二線”之間的海關監管區域，總面積約106平方公裏。其中，橫琴與澳門特别行政區之間設爲“一線”；橫琴與中華人民共和國關境内其他地區之間設爲“二線”。
   
   The zone has set three-phased development goals, among which, by 2035, the location's economic strength and scientific and technological competitiveness will be significantly improved, the public service and social security system will operate efficiently, and the integrated development system will and mechanism of Macao will be further enhanced. The goal of promoting moderately diversified economic development of Macao will be achieved. Zone focus on the development of new industries, boosting Macao economy instead, focusing on the development of science and technology research and development and high-end manufacturing industries, such as traditional Chinese medicine brand industrial, um tour exhibition trade industry and modern financial industry, for eligible industry enterprises shall apply to the collection of enterprise income tax rate of 15%, to work in the zone and high-end talent and a shortage of talent, The portion of their income tax burden exceeding 15% will be exempted.
   合作區設定三個階段性發展目标，其中到2035年，合作區經濟實力和科技競争力大幅提升，公共服務和社會保障體系高效運轉，琴澳一體化發展體制機制更加完善，促進澳門經濟适度多元發展的目标基本實現。合作區着力發展促進澳門經濟适度多元的新産業，聚焦發展科技研發和高端制造産業、中醫藥等澳門品牌工業、文旅會展商貿産業和現代金融産業，對符合條件的産業企業按15%的稅率征收企業所得稅，對在合作區工作的境内外高端人才和緊缺人才，其個人所得稅負超過15%的部分予以免征。
   
   Zone focus on new home construction convenience Macao residents' life employment, China Mainland will speed up the establishment of a new neighborhood "Macau," docking the Macao people's livelihood public services such as education, health care, social service, and social security system, to promote comprehensive of Macao convenient vehicle into a zone, and to promote infrastructure interconnectivity, effectively expand Macao residents quality living space.
   合作區着力建設便利澳門居民生活就業的新家園，加快推進“澳門新街坊”建設，對接澳門教育、醫療、社會服務等民生公共服務和社會保障體系，推動全面放開澳門機動車便利入出合作區，推進基礎設施互聯互通，有效拓展澳門居民優質生活空間。
   
   Zone focus on the high level open new system with Macao integration, achieve the goods "one line," "second line" to hold, in addition to the specific national laws, administrative rules and regulations shall not be exempt from tax (confirmed) goods and articles, goods and articles from other tax (confirmed), high availability of personnel entering and leaving, cross-border financial management innovation, establish a highly convenient market access system, To promote the safe and orderly cross-border flow of Internet data, and realize the efficient and timely flow of people, logistics, capital flow and information flow with Macao.
   合作區着力構建與澳門一體化高水平開放的新體系，實現貨物“一線”放開，“二線”管住，除國家法律、行政法規明确規定不予免（保）稅的貨物及物品外，其他貨物及物品免（保）稅進入，人員進出高度便利，創新跨境金融管理，建立高度便利的市場準入制度，促進國際互聯網數據跨境安全有序流動，實現與澳門人流、物流、資金流、信息流等高效便捷流動。
   
   The zone focuses on establishing and improving a new system of extensive consultation, joint contribution, joint management, and sharing between Guangdong and Macao and sets a development and management agency for the zone, which Guangdong Province will administer.
   合作區着力建立健全粵澳共商共建共管共享的新體制，建立合作區開發管理機構，合作區爲廣東省管理。
   

2. Positive impact of Hengqin Macau Deep Cooperation Zone on Microchip Factories[2]
   橫琴澳門深度合作區對微芯片工廠的積極影響

   Macao has always been the world's leading innovative competitiveness in the field of integrated circuits.
   澳門在集成電路領域一直以來就具備全球領先的創新競爭力。
   
   Macao has the highest level of national laboratory in integrated circuits, the State Key Laboratory of Analog and Mixed Signal VLSI at the University of Macau. The number of papers published in the authoritative international ISSCC Solid-state Circuit Conference is the world's leading, and the research has repeatedly won the national science and technology achievement award.
   在集成電路領域，澳門擁有國內最高水平的國家實驗室——澳門大學模擬與混合信號超大規模集成電路國家重點實驗室。該實驗室關於芯片的研究論文在國際權威的ISSCC固態電路大會發錶量全球領先，研究更屢獲國家級科技成果獎。
   
   However, despite the high-tech innovation resources such as high-level national laboratories in the field of integrated circuits, the imperfection of the four industrial chains and the lack of hard and soft conditions restrict the upgrading of Macao's innovation capability. Many innovative achievements can only stay in the research stage, and integrated circuits' transformation and industrial development are relatively weak.
   然而，盡管擁有集成電路領域高水平國家實驗室等科創資源，但四產業鏈的不完善和硬軟條件的缺失制約著澳門創新策源能力的升級，大量創新成果只能停留在研究階段，集成電路的成果轉化和產業發展較為薄弱。
   
   Hengqin, as an in-depth cooperation zone between Guangdong and Macao, has promoted the moderately diversified development of Macao's economy and become the most convenient new space for Macao's integrated circuit innovation and scientific research achievements to be translated into real productive forces.
   横琴作为粤澳深度合作区，促进了澳门经济适度多元发展，也成为澳门集成电路创新科研成果落地并转化成实际生产力的最便利的新空间。
   
   Hengqin aims at the integrated circuit design industry, the most technology-intensive subdivision of the integrated circuit industry chain. This sector has low requirements for land, space, and environment, high industrial added value, no industrial energy consumption and pollution, and high requirements for high-level talents and financial capital environment, which can be closely combined with the characteristics and advantages of Macao.
   橫琴瞄准的是集成電路產業鏈裏最具技術創新密集特點的細分產業闆塊——集成電路設計業。這一闆塊對土地、空間和環境要求小，產業附加值高，無工業能耗和汙染，對高水平人才和金融資本環境有較高的要求，正好與澳門的特色和優勢可以緊密結合。
   
   In addition, Hengqin's IC design industry already has the foundation. By the end of 2020, Hengqin has attracted more than 400 registered enterprises related to the IC industry, among which Xinyaohui Technology, Jihai Semiconductor, Xinchao Technology, Xinjing Technology, and other enterprises are all leading enterprises in the IC design industry.
   此外，橫琴的集成電路設計產業已經具備一定基礎。截至2020年底，橫琴已吸引集成電路產業相關註冊企業超過400家，其中的芯耀輝科技、極海半導體、芯潮流科技、芯動科技等企業，均為集成電路設計行業的領軍企業。
   

3. Conclusion:
   總結

   1. Macao microchip factory is planned to be built in Hengqin, and a deep cooperation zone has been established between Hengqin and Macao, which the Chinese mainland government deeply supports, and it is very beneficial to the future development of the factory.
      澳門芯片工廠計畫建在橫琴，而橫琴與澳門之間又設立了深度合作區且深受中國大陸政府的支持，這對日後工廠的發展是非常有利的。

   2. The establishment of the Hengqin Macau Cooperation Zone aims to diversify Macao's economy and focus on high-end manufacturing and other industries. Therefore, the Macao microchip factory can levy corporate income tax at 15% if the conditions are met. Moreover, high-end talents from domestic and abroad and skills in short supply working in the zone will be exempted from personal income tax of more than 15%, which is beneficial to the recruitment of Macao microchip factories.
      橫琴澳門合作區的建立就是要使澳門經濟多元化，且聚焦高端製造等產業。所以，如果符合條件，澳門芯片工廠可以按照15%的稅率征收企業所得稅。不僅如此，對在合作區工作的境内外高端人才和緊缺人才，其個人所得稅負超過15%的部分予以免征，這對澳門芯片工廠招賢納士是有利的。

   3. The establishment of the Hengqin Macau Deep Cooperation Zone has solved the problems of cross-border logistics transportation and the capital flow of chips for factory transportation.
      橫琴澳門深度合作區的建立，良好的解決了日後工廠運輸芯片的跨境物流運輸、資金流等問題。

Reference
參考

1.  "横琴粤澳深度合作区简介". Hengqin.Gov.Cn, 2022, http://www.hengqin.gov.cn/macao_zh_hans/hzqgl/zjhzq/qygk/content/post_2986902.html.

2. "横琴粤澳深度合作区“中国芯”的国际化之路-中央政府驻澳门联络办公室". Zlb.Gov.Cn, 2022, http://www.zlb.gov.cn/2022-04/14/c_1211636567.htm.

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Project Progress
項目進展

1. Team Recruitment
   團隊組建

   The executive board of this project gathered professionals and experts in the microchip industry from over 200 countries and regions, including mainland China, Chinese Taipei, Japan, South Korea, the United States, Europe, Singapore, etc. The board members have worked in world-famous semiconductor companies, experienced in design, marketing, operation, management, manufacturing, and service. The team has various experiences in microchip development, design, and manufacturing. The group owns more than 1000 domestic and international patents, including the core circuit design patent.
   項目執行團隊將聚集來自於中國大陸、中華台北、日本、韓國、美國、歐洲以及新加坡超過200個國家和地區的專業人才和研發專家，項目團隊擁有多年半導體電路設計、研發及製造的實戰經驗，團隊在過去15年閒已經擁有超過1000個相關專利，其中不乏半導體集成電路的核心專利。核心團隊管理層均曾就職於國内外知名半導體公司，具有豐富的設計、市場、運營、管理、生產和服務經驗。
   
   At the beginning of the project, the team had approximately 50 people, and ideally, the scale will be expanded to 510 to 530 people, with 210 experienced. Ideally, by the end of the first stage, the team has been expanded to 1000 to 1100 people, and all the trained members have had at least one year of experience and can devote themselves to development and manufacturing immediately. All the new members will be trained as the factory is being built.
   項目啓動初期，團隊約有50人，預計項目正式開工時可達510到530人，其中210人擁有相關經驗。所有的新人將會接受培訓，工廠將會同步建設。預計完成一期建設時，新人已擁有至少一年的經驗，可以快速投入新產品的研發製造之中。
   

2. Production Plan
   產能計劃

   • Production Plan A: 8-inch: 60k/month, 12-inch:2k-3k/month
     產能計劃A：8寸：60k/月，12寸：2k-3k/月

   • Production Plan B: 8-inch: 80k/month, 12-inch: 2k-3k/month
     產能計劃B：8寸：80k/月，12寸：2k-3k/月

3. Investment Plan
   投資計劃

   1. Local government support 0.2 billion RMB per year as R&D funding for 5 years(or 0.33 billion RMB per year for 3 years).
      地方政府每年支持2億元人民幣作爲研發經費，時長五年（或每年支持3.3億元，時長3年）。

   2. Local government encourage private investment about 2 to 3 billion RMB.
      地方政府鼓勵私人投資20到30億元人民幣。

   3. Project invite enterprises and private equity invest about 4 billion RMB.
      項目團隊要求民營企業與私募基金投資約40億元人民幣。
      To cope with the demand from the clients, the project plans to accelerate its production efficiency through applying for loans from government below 3 billion RMB (5-year tem rate less or equal to 4.35%).
      為滿足客戶需求，項目計劃加速其產能，因此將向政府申請貸款總數不超過3億元人民幣（5年利率小於等於4.35%）
      

4. Stage I Plan
   項目一期計劃

• Year 1 Q1 Planning: signing contract, team recruitment, private equity for Stage I.
  第一年第一季度 項目規劃：簽署項目合約，團隊組建，儀器資金募集。

• Year1 Q3 Beginning: factory building(approximate 15 to 17 months), patent authorization, equipment procurement, worker training.
  第一年第三季度 項目起步：工廠建設（預計15到17個月），技術專利授權，設備采購，員工培訓。

• Year 2 Q4 Testing: equipment installation and testing, production testing, client authorization.
  第二年第四季度 試產階段：設備安裝調試，產品試產，通過客戶認證。

• Year 3 Q1 Mass Production: 8-inch followed by 12-inch, improving efficiency.
  第三年第一階段 量產階段：以8英寸為先，12英寸緊隨其後，提升產能。

• Year 4 Planning Making Profits Within the Year: equipment procurement based on needs.
  第四年 預計年内盈利：按照需求購買新設備。

• Year 5 Reaching Goals: reaching Stage I goal, earning profits, Stage II preparation and equipment procurement.
  第五年 年内達產：實現項目一期產能和盈利目標，進行項目二期準備和設備采購。

• Year 5 IPO Preparation
  第五年 公司上市準備

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Disclaimer
免責聲明

This document is general background information about the Company’s activities at the date of this document. THE KEITH & EVEN GROUP (HK) Limited. has produced this document based on information available to it, including information derived from public sources that have not been independently verified. No re-document or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a comprehensive re-document of the Company’s cash generation performance.
本文件提供截至文件發布日期為止的公司活動的基礎背景信息。奕資（香港）有限公司根據其可獲得的信息編制了本文件，包括來自未經獨立驗證的公共來源的信息。 對於此處表達的信息、意見或結論的公平性、準確性、正確性、完整性或可靠性，不提供任何明示或暗示的新文件或保證。 這些預測不應被視為對公司現金產生業績的全面更新。

This document is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of the Company’s credit facilities or any of the Company’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s securities in any jurisdiction. Neither this document nor anything in it shall form the basis of any contract or commitment. This document is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.
本文件不是，也不應被解釋為對本公司信貸融資或本公司任何證券的要約、邀請或建議，或對本公司的設備及在任何司法管轄區的證券的要約、出售邀請或建議，及購買要約的引導。 本文件及其中的任何內容均不構成任何合同或承諾的基礎。本文件無意作為對投資者或潛在投資者的建議，也不考慮任何投資者的投資目標、財務狀況或需求。在決定是否投資時，所有投資者都應在諮詢他們選擇的專業顧問時考慮到這些因素。

The financial information included in this document is preliminary, unaudited and subject to revision upon completion of the Company's closing and audit processes. This financial information has not been adjusted to reflect the outcome of any reorganization of the company’s capital structure, the resolution or impairment of any pre‐petition obligations, and does not reflect fresh start accounting which the company may be required to adopt.
本文件中包含的財務信息是初步的、未經審計的，並會在公司的結算和審計流程完成後進行修訂。 該財務信息未能反映公司任何資本結構重組、任何申請前債務的解決或減值後的結果，並且不反映公司可能需要採用的新的會計方法。

All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document. The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
所有歸屬於公司或代表其行事的人的前瞻性陳述僅在本文件發布之日適用，並且完全受限於本文件其他地方包含的警示性陳述。財務預測是初步的，可能會發生變化；公司無義務更新或修改這些前瞻性陳述以反映文件發布日期之後發生的事件或意外事件的發生。不可避免地，一些假設不會實現，並且意外事件和情況可能會影響最終的財務結果。預測本質上會受到大量不確定性的影響，並受到各種重大業務、經濟和競爭風險的影響，並且預測所依據的假設在任何重大方面都可能不准確。因此，所取得的實際結果可能與預測有很大差異，而且差異可能很大。

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