NSIG Outlook Pressured for Next Year, Cash not Enough for Its Unbridled Expansions

National Silicon Industry Group is a Chinese up-and-coming semiconductor silicon wafer producer. Contrary to its larger peers, NSIG is unlikely to build new sites outside of China because of geopolitical risks and the incremental demand coming from Chinese customers. We expect NSIG to quadruple its 300 millimeter wafer capacity by 2030, compared with end of 2022 levels, partly fueled by China’s pursuit of a self-sufficient supply chain.