In the context of trade friction between China and the United States, Japan's magnetic technology holding company, which produces semiconductor materials and equipment parts, has chosen to continue to invest in high-level equipment in China, the Japanese media reported on July 9.

    He Xianhan, a senior executive of Japan's magnetic technology holding company, was confident about the future of China's business at a recent financial briefing, the Japanese economic news website reported on July 8.

    Reported that this confidence is reflected in the equipment investment plan. The company plans to increase equipment investment by 30% year-on-year to 48 billion yen (1 yen is about 0.06 yuan), the highest in a single year. Among them, investment in China accounted for 96%.

Japan's magnetic technology holding company continues to invest in China because it believes the move to produce semiconductors domestically will accelerate. The Japanese magnetic technology holding company is particularly concerned about the field of "traditional semiconductor" (non cutting-edge semiconductor). Traditional semiconductors refer to low-cost semiconductors that are three generations behind the most advanced semiconductors, and are used in household appliances and other popular products. In addition, it is also used in face recognition chips, and it is reported that the demand is expected to grow.

    According to the report, compared with the most advanced semiconductor, traditional semiconductor is not easy to become the target of American pressure, and China is likely to expand production at present.

    At present, several Chinese semiconductor manufacturers are promoting the construction plan of traditional semiconductor factories, the report said. If the semiconductor manufacturing equipment made in China is used, it will drive the demand growth of equipment parts such as quartz and ceramic products produced by Japan magnetic technology holding company.

    In addition, Japan magnetic technology holding company's wafer and equipment parts cleaning demand is also expected to expand. Parts cleaning needs professional technology such as metal pollution countermeasures, and the company has occupied 60% of the Chinese market.

    "In the field of 200 mm wafers, Japan's magnetic technology holding company (compared with local manufacturers) has technical advantages and has established a sales network," said Mr Hasegawa of Mitsubishi UFJ Morgan Stanley Securities. In the medium-term business plan up to 2021, Japan Magnetic Technology Holding Co., Ltd. proposed to increase the consolidated sales by 40% compared with that in 2018, reaching the scale of more than 125 billion yen.