China's semiconductor industry grows 250% faster! 14nm is about to go into mass production

Regardless of whether ZTE and Huawei are sanctioned or not, the problem of China's ICT industry lacking core (processor) and soul (operating system) is a long-standing one, and the country's support for the semiconductor industry and software industry is unwavering. Earlier this month, the State Council passed a resolution to give the domestic semiconductor industry a 10-year tax incentive, and the more advanced the technology, the more incentives.

If the current trend continues, the domestic semiconductor industry will obviously usher in a period of rapid development. Digitimes Research recently published a research report stating that China has been committed to significantly increasing its self-sufficiency rate in integrated circuits since the 12th Five-Year Plan.

According to the report, the combined production capacity of pure-play foundries headquartered in China will increase significantly from 14.536 million equivalent 8-inch wafers in 2018 to 19.119 million pieces in 2021, with a compound annual growth rate of 9.6%.

Among them, SMIC is China's largest wafer foundry and is expected to mass produce 14nm FinFET process in the second half of 2019. HLMC Huali Microelectronics is another major wafer foundry and is expected to mass produce 14nm FinFET process in 2021.

At the same time, in the later period of the 13th Five-Year Plan (2016 to 2020), more and more Chinese chip manufacturers will start operations in the IDM vertical integration manufacturing model, including ASMC Shanghai Advanced Semiconductor, SiEn Qingdao Xinen, Silan Hangzhou Silan, CanSemi Guangzhou Yuexin, etc.

In the next few years, the completion and production of several heavyweight chip manufacturers will drive a surge in the production capacity of Chinese semiconductor manufacturers. It is estimated that the monthly production capacity in 2024 will reach 856,000 8-inch equivalent wafers, while the monthly production capacity in the first quarter of 2019 was only 243,000 pieces. In comparison, the production capacity has increased by 250%. This growth rate can be said to be amazing in the global semiconductor market.

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