China's semiconductor industry can only achieve success after a long period of accumulation

At the 2019 Anchuang Future Technology Innovation "Chip" Conference, Huang Qing, Managing Director of Walden International China, said that China's semiconductor industry has gone through continuous learning from the "incubation" stage of cheap substitution to now entering a stage of focusing on increasing added value, strengthening research and development, introducing new functions, and cooperating with first-line customers.

Huang Qing pointed out that after decades of technological accumulation, a large number of successful semiconductor companies have emerged in China. This shows that for China's semiconductor industry, "it takes ten years to sit on the bench" and only after a long period of accumulation and endurance can it achieve success.

As the world's largest semiconductor market, China will continue to lead the market and create new value using innovative technologies in this industry in the future.

However, Huang Qing said that in the past few years, as the number of Chinese IC design companies increased, domestic companies also continued to differentiate, which eventually led to the dispersion of talents and resources in the entire industry. According to Huang Qing, from 2010 to 2018, the number of Chinese IC design companies increased from 582 to 1,698, and there were 632 Chinese chip design companies, but 87% of them had less than 100 employees.

Huang Qing said that in the future, my country's semiconductor companies will compete with international companies through scale wars. The key lies in the fact that companies must turn management capabilities into core capabilities. On the one hand, they should establish an effective hierarchical management model to achieve efficient management capabilities; then, through integration means such as mergers and acquisitions, they can expand the company's scale, improve competitiveness and accelerate development; and finally, they can use cooperation with customers and platforms to centrally integrate and allocate resources.