my country's integrated circuit industry is growing strongly

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my country's integrated circuit industry is growing strongly [Copy link]

my country's integrated circuit industry is growing strongly

2006-7-7

　 The rapid development of my country's national economy and electronic information industry has provided a vast market for the IC industry. In the "National Medium- and Long-Term Science and Technology Development Plan Outline" and the "Eleventh Five-Year Plan for National Economic and Social Development", the development of integrated industries and technologies has been given a prominent and important position, and the government departments are formulating new industrial policies. The development of my country's integrated circuit industry faces good development opportunities and development space. Since 2006, the development of my country's integrated circuit industry has shown a strong growth trend.

　　The industry growth rate is accelerating this year

　　From January to March, the total sales revenue of my country's integrated circuit industry reached 21.488 billion yuan, a year-on-year increase of 54.8%. The total output of domestic integrated circuits was 9.922 billion pieces, a year-on-year increase of 64%.

　　Judging from the development of various industries in the domestic integrated circuit industry in the first quarter, the three industries of design, chip manufacturing and packaging and testing have all grown rapidly, among which the development of the packaging and testing industry is the most prominent. In the first three months of this year, the domestic packaging and testing industry achieved a total sales revenue of 11.491 billion yuan, a year-on-year increase of 60.2%, which is the fastest growing quarter in the packaging and testing industry in the past five years. The completion and production of Infineon (Suzhou)'s new plant, as well as the rapid expansion of production scales of Shenzhen STMicroelectronics, Star Semiconductor, Xinchao Technology, Tianshui Huatian and other companies, are the main reasons for the substantial growth of the packaging and testing industry and chip manufacturing industry.

　　From the perspective of the integrated circuit manufacturing industry, driven by the recovery of chip foundry prices and the continuous release of production capacity of TSMC (Shanghai)'s new plant, the sales revenue of the chip manufacturing industry in the first quarter was 6.563 billion yuan, an increase of 43.8%. In terms of the design industry, compared with the rapid growth in the previous two years, the development of the design industry has stabilized since entering 2006. In the first quarter, the domestic design industry achieved a total sales revenue of 3.434 billion yuan, a year-on-year increase of 41.8%. In the first quarter, the sales revenue of the three industries of design, chip manufacturing and packaging and testing accounted for 16%, 30.5% and 53.5% respectively.

　　New opportunities for industrial internationalization

　　On June 15, the China Semiconductor Industry Association (CSIA) and the World Semiconductor Council (WSC) jointly signed the "Memorandum of Understanding on the China Semiconductor Industry Association's Joining the World Semiconductor Council". The signing of the memorandum marks a new chapter in the cooperation and exchanges between the Chinese semiconductor industry and the world's major semiconductor producing countries and regions.

　　In the past five years, China's semiconductor industry has developed very fast, but it still cannot keep up with the demand of China's semiconductor market. The sales revenue of chips produced in China is less than 20% of the demand in the Chinese market. Even according to the "Eleventh Five-Year Plan", by 2010, the chips produced in China can only meet 30% to 40% of the demand, accounting for only about 8% of the global output. For the China Semiconductor Industry Association, the purpose of joining WSC is to develop China's own semiconductor industry through international exchanges.

　　After joining WSC, China's semiconductor industry must first strengthen international exchanges; second, establish multi-level and all-round cooperation with domestic system manufacturers and the international industry; and third, work with WSC to create a better industry development environment.

　　Future trends and priorities

　　Factors that are favorable to the development of my country's integrated circuit industry, such as market growth, improved investment environment, attractive preferential policies, and global industry transfer, will continue to exist and drive the rapid growth of the industry in the future. By 2010, my country will become a large market of more than 100 billion US dollars. During the "Eleventh Five-Year Plan" period, the growth rate of my country's integrated circuit industry will continue to remain at about 30%.

　　It should be emphasized that the current domestic market demand is both our opportunity and the biggest challenge. Last year, China became the world's largest consumer of integrated circuits, accounting for more than 24% of the world's integrated circuits, but the domestic market self-sufficiency rate of domestic integrated circuits was less than 10%. Therefore, IC design companies must first face and meet market demand. During the "15th Five-Year Plan" period, many IC design research results were not introduced to the market, which is an issue that we urgently need to improve. Chinese IC design companies should emphasize having independent intellectual property rights, mastering core technologies, and launching branded and market-competitive products.

　　In addition, intellectual property rights have become one of the challenges that domestic industries must face in their development. The IC industry must have independent intellectual property rights. To this end, CSIA established the Intellectual Property Rights Department last year and the "Intellectual Property Rights and Product Innovation Special Working Committee" this year. It has also included intellectual property protection in the requirements for IC enterprise certification and annual inspections.

　　During the 11th Five-Year Plan, we need to continue to develop foreign cooperation, and funds, technology, talents, and markets must be considered in accordance with international characteristics. Especially in the introduction of technology and project construction during the 11th Five-Year Plan, we must focus on the digestion, absorption, and re-innovation of the introduced technology. At the same time, each region should find its own position in the industrial chain based on the unified national plan, combined with the advantages of the region, and combined with the construction of national electronic information industry parks and integrated circuit bases in various places, rather than low-level duplication.

Author: Executive Vice Chairman of China Semiconductor Industry Association

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Top! Integrated circuits definitely have a bright future in China. After all, China is known as the world's factory and has a huge demand for integrated circuits. However, the domestic integrated circuit industry is still lagging behind in terms of both quantity and quality. Most of them rely on imports.