IC: The speed of domestic industry lags behind market demand

Zou Shichang, an academician and materials scientist at the Chinese Academy of Sciences, said: "China's integrated circuit chips have been imported over petroleum," causing great concern for China's integrated circuit industry. Last week, the Cross-Strait Integrated Circuit Industry Cooperation and Development Forum was held in Shanghai in 2011. TSMC, SMIC, MediaTek and other industry leaders appeared at the forum. The development trend of China's integrated circuits has once again become the focus of attention.

Consumption of foreign exchange over oil There are media reports, Academician Zou Shichang said that currently 80% of China's integrated circuit chips rely on imports, foreign exchange in this regard consumed more than oil, becoming the largest foreign exchange consumer.

At the cooperation forum, Wang Ningguo, president of SMIC, gave a detailed answer to this question. Relevant data show that China is the world's largest electronics manufacturing industry base. By 2014, China's mobile phone production reached 1.115 billion units, accounting for 50% of the world's total production. China's notebook computer output reached 328 million units, accounting for 80% of the world's total production.

Taking iPad as an example, ICs account for 50% of the cost of the entire machine. Looking back at the industry scale of China's integrated circuits, although the share of China's integrated circuit industry in the world is also growing, its proportion still lags far behind that of end products. According to data from iSuppli, by 2015, China's IC industry has accounted for about 35% of the world's total, an increase of 3% over 2010.

On the one hand, the manufacturing links of terminal products such as mobile phones and computers are continuously transferred to China. On the other hand, the share of China's integrated circuit industry has grown relatively slowly. This shows that the reality of the massive import of integrated circuits in China will not change in the short term.

Jiang Shoulei, secretary-general of the Shanghai Integrated Circuit Industry Association, also told reporters that the absolute number of imported IC products in China is showing an expanding trend, so the situation of large imports in the short term cannot be changed. The main reason is that the pace of development of China's integrated circuit industry is still not keeping pace with market demand, so we must increase production capacity as soon as possible.

Shanghai promotes industrial development Recently, the Shanghai Municipal Commission of Economics and Information released a latest research report on the development of the IC industry in Shanghai. The report is encouraging and pointed out that it is expected that the IC industry in Shanghai will remain higher than global semiconductors in 2013-2014. The average growth rate of the industry and the national integrated circuit industry. In the end, in 2015, the sales revenue of the Shanghai integrated circuit industry reached 100 billion yuan, more than double the sales revenue during the “Eleventh Five-Year Plan” period.

The report pointed out that Shanghai will vigorously promote Huali 12-inch production line construction. Support SMIC's 12-inch production line upgrade and expansion. Supports the upgrade and expansion of Shanghai Hua Hong NEC, Shanghai Hongli and TSMC 8-inch production lines. Support Shanghai Advanced, Shanghai Xinjin and Shanghai Belling to develop analog circuit technology, which will enable Caohejing to become China's largest analog circuit manufacturing base.

Gu Wenjun, an analyst at market research company iSuppli, told reporters that the domestic IC import volume exceeds 100 billion US dollars every year, and as the terminal product manufacturing bases continue to shift to the domestic market, the trend of integrated circuits relying on imports is expanding. To narrow this gap requires the joint efforts of the government and enterprises. The new national document No. 18 further promotes the development of software and integrated circuits. The government should introduce more powerful policies. In particular, local governments should adopt targeted and operational policies, and the industrial sector needs to work hard to keep up.

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