Faced with the fast-paced network, how can we seize the 5G business opportunities?

In the previous article at the Jiwei.com Semiconductor Summit, we talked about the many changes that 5G has brought to society ( refer to the previous article ). Faced with these overwhelming business opportunities, how can we seize them and what risks will we face?

Meng Pu——Talent training is based on technology first

Meng Pu, Chairman of Qualcomm Wireless Communications Technologies (China) Co., Ltd., said that what my country's semiconductor industry lacks most is talent. Now more than 30 years have passed, and the use of talent is still very similar to that in the 1980s and 1990s. This is an opportunity that the semiconductor industry should cherish. "I was born with talent and it will be useful. Even if I spend all my money, I will get it back." Using talent well does not mean poaching people from everywhere. If the existing people are not used well and cannot be retained, all the previous efforts will be in vain. In addition, semiconductors are actually ubiquitous in all industrial products, whether for home use, so not every company has to keep an eye on Samsung and Tsinghua Unigroup for 5G terminals. Semiconductors cover a wide range of aspects, and many opportunities can be found from them.

The mmWave stage will be another big cake

NXP Global Senior Vice President and Greater China President Zheng Li pointed out that the most important feature of 5G is millimeter wave. At this stage, millimeter wave is mostly in universities and research institutions or related to satellites, and the industry pays very little attention to millimeter wave. Three years later, when entering the 24GHz or higher millimeter wave band, this field will have a relatively scarce investment in terms of both process and packaging, but it is undeniable that millimeter wave technology will provide immeasurable benefits.

Invest boldly and strategically

Ding Xianfeng, chief scientist of Alibaba Cloud IoT, commented that most Chinese companies now have few long-term investment visions like Qualcomm and NXP. China needs to develop from a cost-driven economy to an innovation-driven economy, thereby crossing the middle-class trap. In order to achieve this goal, China must learn this "routine" and not think that investment is a long-term thing and difficult to predict. He pointed out that investment has certain "skills", and we should learn from Huawei, which invested in the industry long before it started. Therefore, we must bet on the right technology trend and invest unswervingly in the case of technology-driven profits.

Where are our weaknesses? How can we break out when surrounded by so many troops?

The Sino-US trade war highlights the shortcomings and deficiencies of the domestic semiconductor industry chain. As trade frictions become protracted, the short-term and long-term impacts on the industry are also of great concern to the guests. The guests all believe that the semiconductor industry is an open industry, and only tolerance can allow the industry to develop in a coordinated manner. For the domestic semiconductor industry, it may bring some losses in the short term, but in the long run, it is a wake-up call for us and will promote the process of localization of the supply chain.

In response to the major issue of the shortcomings of the domestic semiconductor industry, the guests expressed their own views. Generally speaking, everyone's views focused on:

1. The core of the semiconductor industry is manufacturing. Only by laying a solid foundation can we move forward step by step;

2. There are many aspects of semiconductor chip design, but IP and equipment are what we lack the most;

3. The localization rate of equipment is 9%, the material rate is basically less than 20%, and the chip self-sufficiency rate is 25%. What we lack most include: equipment, materials, high-end chips and technology. The lack of key parts has caused us to lose the initiative.

In addition, Chen Datong, chairman of Yuanhe Huachuang Investment Committee, also pointed out that in terms of software, Android, APP, and EDA design software have shortcomings to varying degrees. Another thing that is not easy to see is the process. The importance of special processes is by no means inferior to equipment and materials. The shortcomings of China's semiconductor development are in process devices, high-frequency devices, and various sensor fields. We have accumulated too little in special process technology.

In addition, he also said that chip industry independence is a rite of passage and China must pass this hurdle.

On the question of how to break through, Sun Yingtong, chairman of National Technology Co., Ltd., said that we should look at it with an open mind. Now, our manufacturers have increased their demand for domestic chips, which may not be entirely based on the origin. However, it is impossible not to use EDA software, and it must be the most advanced. So in the long run, we still have to treat it in a peaceful and mutually tolerant state.

Sun Yingtong, Chairman of National Technology Co., Ltd.

Shi Lei, president of Tongfu Microelectronics, said that failure must be tolerated under the innovation system.

Huang Qing, managing director of Walden International China, pointed out that if China wants to do its own thing, it will definitely have its own Intel and Google.

Sun Yuwang, founding partner and president of SMIC Juyuan Capital, analyzed the impact of the trade war on us in three aspects, namely; tariffs, technology bans and investment restrictions. He said that the trade war will end up being a lose-lose situation. Maybe this agreement will last for a while until the entire international environment changes before the trade war ends. But for now, the trade friction between China and the United States on tariffs is short-term. But he believes that the technology ban and investment restrictions should be a protracted war.

The imposition of tariffs will lead to a decline in the performance of the domestic semiconductor industry, a decrease in the export of chips and electronic products, and a significant reduction in the total demand for chips, which will lead to a decline in packaging and testing, procurement of equipment, and instrumentation. Therefore, in the short term, the performance pressure on the industry chain is very high. This is bound to be a painful transition period, but in the long run, it will undoubtedly greatly promote the process of localization of the supply chain.

Sun Yuwang believes that with China's current market and economic strength, except for the US supply, there will be no major supply problems in Europe, Japan, South Korea, etc. Under this premise, we will have the market advantage as a backing, which is more important than the technology itself, because the market can cultivate technology. However, if the technology leaves the market, it will be exhausted.

Pan Jianyue, founding partner of Wuyuefeng, also emphasized this point and suggested that trade relations with the United States and other European countries should be well managed.

In addition, in terms of industry, he believes that we must have our "killer weapon", which we must find a way to create. This alone is not enough, we must have technical means such as economic security, national security, and national defense security to establish a relatively complete industry. After the ZTE and Huawei incidents, Pan Jianyue is full of confidence in China's establishment of a relatively complete industrial chain.