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China Development Bank Supports Tongfu Microelectronics in Resuming Production and Operations, Pressing the "Fast-Forward" Button

Release date:

2020-03-04

Over the past week, the COVID-19 pandemic has been spreading rapidly across the globe, prompting the World Health Organization to raise its risk alert level to the highest possible tier. Meanwhile, the fierce outbreak in Japan and South Korea—nations separated only by a narrow stretch of water—has also sent ripples through the global semiconductor industry, as both countries occupy critical positions within the semiconductor supply chain.

Over the past week, the COVID-19 pandemic has rapidly spread across the globe, prompting the World Health Organization to raise its risk alert level to the highest tier. The fierce outbreak in Japan and South Korea—nations separated only by a narrow stretch of water—has sent ripples through the global semiconductor industry, as both countries hold critical positions within the semiconductor supply chain. Japan serves as a pivotal node for core technologies in the industry, excelling particularly in semiconductor equipment and materials; in fact, many Japanese companies produce materials that are simply irreplaceable. Industry experts are concerned that if the situation continues to worsen, disruptions in these key supplies could inflict significant losses on the global supply chain. Tongfu Microelectronics is one of China’s leading players in chip packaging and testing, recognized as a national-level high-tech enterprise prioritized by the state. The company boasts strong capabilities in expanding into international markets, with exports accounting for more than 80% of its business. Notably, both the Nantong Tongfu Microelectronics Intelligent Chip Packaging and Testing Project and the Suzhou Tongfu Supermicroprocessor Chip Packaging and Testing Project have been included in Jiangsu Province’s “2020 Major Investment Project Plan.” Following the Spring Festival, the Jiangsu Branch of the China Development Bank proactively reached out to Tongfu Microelectronics, gathering detailed information on how the company was being impacted by the pandemic—and promptly committed substantial financial support to help the firm resume production and kickstart its key projects. On February 19 and 26, the Jiangsu Branch signed loan agreements totaling RMB 280 million and USD 35 million with Tongfu Microelectronics, respectively, disbursing the full amounts in a single, immediate payment that same evening. Meanwhile, the Suzhou Branch of the China Development Bank also extended loans worth RMB 80 million and USD 35 million to Suzhou Tongfu Supermicro during the same period. Leveraging these urgently needed funds, Tongfu Microelectronics has fully resumed operations, ramped up production capacity, and seized opportunities amid the global crisis. By acting swiftly to secure orders and bolster material supply chains before the pandemic’s widespread impact could severely disrupt the industry, the company has turned potential challenges into strategic advantages. This proactive approach not only helps meet customer demands but also plays a crucial role in enabling Tongfu Microelectronics to achieve its annual business targets. The dedication of the Jiangsu and Suzhou branches of the China Development Bank—working tirelessly to provide efficient, high-quality services tailored to the company’s needs—has deeply moved Tongfu Microelectronics, underscoring the bank’s unwavering commitment to supporting the growth and resilience of local enterprises.

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