my country's integrated circuit industry is facing changes! Globalfoundries is expected to acquire IBM's semiconductor business

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my country's integrated circuit industry faces changes

As an emerging strategic industry, integrated circuits received great attention and sparked a lot of discussion during this year's two sessions. With the support of the state and various favorable policies, the transformation of the integrated circuit industry is imminent and will enter a new stage of development, and is expected to show its prowess in the world market.

The upcoming release of a new round of national integrated circuit industry support policies will inevitably bring significant benefits to the integrated circuit industry and will help further consolidate the integrated circuit industry's leading position in strategic emerging industries.

The country's support for the integrated circuit industry has reached the highest level in the past decade. In the government work report at this year's two sessions, the key tasks for 2014 were to "establish an entrepreneurial innovation platform for emerging industries, catch up with the advanced in new generation mobile communications, integrated circuits, big data, advanced manufacturing, new energy, new materials, etc., and lead the development of future industries" in the "support and lead the optimization and upgrading of economic structure with innovation" section. The introduction of localization policies has not only brought the best opportunities for the layout of related companies in the industry, but also brought excellent opportunities for new companies to join.

Faced with such superior policy support, the integrated circuit industry will surely seize the opportunity and actively transform and upgrade. In recent years, with the improvement of China's IC manufacturing and packaging technology, semiconductor process technology has entered an innovative development model. Under this new development model, the technological gap between mature companies and new companies is no longer so obvious. The competition among peers is more about overall development capabilities and the speed of entering the market. Some domestic semiconductor equipment companies have successfully broken the monopoly of international giants and achieved records in mass production of advanced chip production lines both internationally and domestically. In addition, we will also concentrate funds, manpower, and adjust policies to encourage advantageous companies to integrate and merge, so as to become bigger and stronger in this way and strive to occupy a place in the international market.

The tilt of national policies makes the growth of China's integrated circuit market promising in the future. In the future, policies will also help to establish a diversified and multi-channel technology investment system to attract a wide range of social funds. Enterprises should seize the opportunity, attach importance to the cultivation of core production processes and core application technologies, and maintain their core competitiveness.

Professional market research firm DisplaySearch pointed out that the scale of the smartphone market in mainland China was 300 million units in 2013 and is expected to continue to grow to 400 million units in 2014, with an annual growth rate of 35%.

DisplaySearch said that in 2013, global smartphone shipments exceeded feature phones, reaching 960 million units for the year, a 38% year-over-year growth rate. Smartphone growth will continue in 2014, and is expected to approach 1.2 billion units, a 24% year-over-year growth rate.

DisplaySearch analysis shows that North America used to be the world's largest smartphone market. However, with the support of MediaTek and many key component manufacturers, as well as the improvement of telecommunications equipment in mainland China, mainland China became the world's largest smartphone market after 2012.

DisplaySearch emphasizes that the Chinese mainland market, with its low-price, high-spec appeal, is rapidly driving the growth of the smartphone market; the low-end smartphone market priced below US$200 accounted for 31% of the global smartphone market in 2013 and is expected to grow to 35% in 2014.

DisplaySearch estimates that low-priced smartphones will be hot-selling in mainland China in 2013 and 2014, and are expected to account for 56% of the overall low-priced market.

However, if you look closely, some of the low-priced smartphones in mainland China, although priced below US$150, do not have low-end specifications.

Globalfoundries is rumored to be expected to acquire IBM's semiconductor business

Beijing time, April 4, according to the online version of the Wall Street Journal, people familiar with the matter said that Globalfoundries has taken a leading position in the competition to acquire IBM's semiconductor manufacturing business.

According to people familiar with the matter, IBM has held talks with Intel and TSMC. TSMC has withdrawn from the negotiations, but Intel is still in the bidding process, but Globalfoundries seems to have a strong interest in IBM's semiconductor business. A TSMC spokesman said the company has studied IBM's chip factory and currently has no plans to add a new factory for its overseas market.

People familiar with the matter said that IBM's negotiations with Globalfoundries are ongoing, but a deal cannot be reached immediately. The acquisition transaction involves some thorny issues, such as control of intellectual property rights and the terms for the final buyer to continue to produce chips for IBM computers. Price is also another sticking point. IBM initially hoped to offer more than $2 billion, but the buyer offered only more than $1 billion.

People familiar with the matter said that depending on the transaction structure, the acquisition price may fluctuate. If IBM includes chip intellectual property in the transaction, the price will drop. The current situation is uncertain and another buyer may eventually win.

IBM, Intel and Globalfoundries declined to comment.

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