Domestic Toolmaking Gains Ground as SJ Semi Expands 12-Inch Equipment Hub in Wuxi

Shengjisheng (SJ Semi) has signed a deal to build a 6,000-square-meter semiconductor equipment manufacturing center in Wuxi's Huishan High-tech Zone. The facility will produce advanced 12-inch thin-film deposition tools, a move aimed at bolstering China's domestic semiconductor manufacturing supply chain.

Detailed view of organized electronic circuit boards in a production setting.

Key Takeaways

  • 1Shengjisheng (SJ Semi) officially lands a new incubation and manufacturing center in Wuxi's Huishan High-tech Zone.
  • 2The facility will initially focus on the production of two advanced 12-inch thin-film deposition equipment models.
  • 3Phase one of the project covers 6,000 square meters with a projected annual output of over 150 million RMB.
  • 4The project strengthens Wuxi's position as a critical node for China's domestic semiconductor toolmaking industry.

Editor's
Desk

Strategic Analysis

The expansion of SJ Semi in Wuxi highlights the intensifying localized efforts to solve China's 'chokepoint' problems in semiconductor manufacturing equipment (SME). Thin-film deposition is one of the three core pillars of chip fabrication alongside lithography and etching; currently, the market is dominated by a handful of Western and Japanese firms. By scaling 12-inch equipment production in a mature industrial cluster like Wuxi, China is not just building capacity, but fostering an 'incubation' ecosystem. This suggests a strategic shift where local governments are no longer just chasing fab investments, but are increasingly prioritizing the upstream machinery that makes those fabs viable under the pressure of international export controls.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

Wuxi’s Huishan High-tech Zone has secured a significant win in China’s ongoing quest for semiconductor self-sufficiency. On June 17, Shengjisheng (SJ Semi) formally signed an agreement to establish its Advanced Semiconductor Product Incubation and Manufacturing Center in Luoshe Town. This move marks a strategic expansion for the equipment maker within one of the nation’s most critical industrial clusters.

The project, situated within the Huishan Advanced Manufacturing Industrial Park, will focus on the high-stakes world of thin-film deposition—a critical step in the fabrication of integrated circuits. The first phase of the facility spans approximately 6,000 square meters and is designed to move beyond mere research into active production. Initially, the center will deploy and produce two models of advanced 12-inch thin-film deposition equipment, targeting the high-end demands of modern logic and memory fabrication.

Financial projections for the site are ambitious, with local authorities expecting an annual output value exceeding 150 million RMB once mass production is fully scaled. By focusing on 12-inch (300mm) wafer technology, SJ Semi is addressing the most commercially significant segment of the semiconductor market. This segment is currently the primary battleground for global trade restrictions and domestic substitution efforts in China.

Wuxi’s role in this ecosystem cannot be overstated. As a long-standing hub for the Chinese semiconductor industry, the city provides a ready-made network of suppliers and clients. By embedding advanced incubation and manufacturing within the Huishan High-tech Zone, SJ Semi is positioning itself to capitalize on localized supply chains, reducing the lead times and geopolitical risks associated with imported manufacturing tools.

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