Clarification Statement of China Micro Corporation on Recent False Reports by Online Media

Recently, some online media have appeared in a video titled “China’s most powerful man returns to China, put China’s core on the world stage, and made the United States feel distressed”. There are many reports in the video that are not in line with the facts. It is not the first time that such false reports have appeared. Similar content has appeared in articles on some websites in 2017: “This person suddenly returned to China, and the United States and Japan panicked…”. Individual media did not interview or communicate with China Micro semiconductor. Yin Zhiyao, Chairman of Equipment (Shanghai) Co., Ltd. (hereinafter referred to as “Zhongwei Company”), made any communication. In the absence of actual first-hand materials, some fictitious plots were fabricated and exaggerated titles were used to exaggerate to gain Public concern, such untrue content has had a relatively large negative impact on the integrated circuit industry, and also troubled the business development of Zhongwei Company and the chairman of Zhongwei Company, Yin Zhiyao.

For this reason, China Micro Company makes the following statement to clarify the facts and to face the sound:

The integrated circuit industry is an industry that gathers the wisdom of millions of people, and it is an industry where heroes are born in large numbers. It is not just a few “great people” that put Chinese chips on the world stage, and there is no “strongest” genius. In the report, Yin Zhiyao, chairman of China Microelectronics Corporation, was called “the most powerful man in China” or “the most powerful man in Silicon Valley”. These remarks are exaggerated words that do not match the facts.

The internal structure of an integrated circuit chip is extremely complex, with dozens of layers of microstructure, and it takes hundreds or even thousands of highly precise steps to manufacture. Lithography machine, plasma etching equipment and chemical thin film equipment are the three types of equipment that are very critical in the ten categories of equipment necessary for the manufacture of integrated circuit chips, and are also the largest in the market. In the field of integrated circuit equipment and pan-semiconductor equipment, Zhongwei Company focuses on the development and sales of plasma etching equipment and chemical thin film equipment. In the company’s announced 2019 semi-annual report, it also disclosed the company’s plasma etching equipment. It has been applied in the integrated circuit manufacturing and advanced packaging from 65nm to 14nm, 7nm and 5nm by international first-line customers. However, to manufacture integrated circuit chips, it requires the joint efforts of chip design, device integration technology development and more than ten types of integrated circuit manufacturing equipment. The main business of China Micro Corporation is to develop and manufacture chip manufacturing equipment, not to develop and manufacture integrated circuit chips themselves.

In addition, China Micro and Huawei have no business relationship, did not participate in the development of Huawei’s Kirin-970 chip, did not install 5.5 billion transistors on a 100 square millimeter chip, and did not carry the world’s first artificial intelligence mobile computing platform. There is no support for LTE Cat.18. These chip technologies are not the expertise and business of China Micro Corporation. China Micro Corporation only provides plasma etching equipment to the chip manufacturing company as an equipment supplier. The chip packaging and testing company outsources the packaging, and finally makes the chip.

The above-mentioned reports also repeated the misinformation on the Internet in recent years, saying that when Yin Zhiyao, chairman of Zhongwei Company, returned to China to start a business in 2004, the US government panicked and implemented layers of censorship on Chairman Yin Zhiyao. After collecting 6 million documents and taking away all the craft drawings and craft formulas, the above statements are completely inconsistent with the facts. Yin Zhiyao, chairman of China Micro Corporation, and his colleagues who returned to China to start a business have worked in Silicon Valley for many years and fully understand and strictly abide by the regulations of the US government and the high-tech industry on intellectual property protection; when leaving the US company, he returned everything according to the regulations The technical and commercial confidential documents belonging to the original company; when returning to China to start a business, they did not bring back the documents belonging to the original company, nor were they reviewed by the original company and the US government. At the same time, the employees of Zhongwei Company signed a non-disclosure agreement with Zhongwei Company to promise not to disclose any undisclosed technology and business secrets of the original company, and not to violate any patent rights of other companies in future product development. Zhongwei Company and its employees handle intellectual property affairs in strict accordance with international intellectual property rules, and regard intellectual property as a strategic resource for the company’s development and the core element of international competitiveness; the equipment products developed by Zhongwei Company are uniquely designed and adopted. corresponding patent protection. Since its establishment, China Micro has successfully dealt with several rounds of international intellectual property litigation challenges from three international leading semiconductor equipment companies, covering trade secrets and patents, or won the lawsuit or settled with the other party, all with satisfactory results. In the past 15 years, China Micro and the US Department of Commerce and its subordinate Bureau of Industry and Security have also communicated frequently. In 2013, the Bureau of Industry and Security of the U.S. Department of Commerce granted China Micro the qualification of “Validated End-User”; because China Micro has developed plasma etching equipment with the same quality and a considerable amount as the American equipment company, and realized the quantity In 2015, the U.S. Department of Commerce’s Bureau of Industry and Security removed plasma etch equipment from its commercial control list.

For individual media that violates the principles of truth and objectivity and misleads the public, China Micro recommends them to make rational analysis, judgment and thinking on the basis of fully collecting first-hand materials through direct interviews and research, and not to publish reports without factual basis and content; the company’s relevant information is subject to the company’s official website and information disclosure announcements; seek truth from facts, do not exaggerate the facts, and do not use exaggerated and misleading titles to attract the public’s attention. The real valuable information is the real moving story and profound reasoning, not exaggerated headlines and fictional stories. At the same time, China Micro Corporation also hopes that relevant parties can strengthen the guidance and management of self-media and new media, so that the propaganda role of the media can be implemented. Only in such an environment can more talents actively invest in the construction of high-tech industries and the integrated circuit industry can achieve healthy development.

China Micro Semiconductor Equipment (Shanghai) Co., Ltd.

March 25, 2020

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