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Terminals are gradually saturated, semiconductor market growth slows
In 2007, the global semiconductor market was US$255.6 billion, up 3.2% year-on-year, lower than the expected 10% increase, the lowest increase in the past five years. "In terms of output, global semiconductor production still has a large increase year-on-year, but the price of semiconductor products has dropped significantly, which directly led to the slow growth of global semiconductor sales." Yu Zhongyu, chairman of China Semiconductor Industry Association Said at the annual meeting.
The slowdown in global semiconductor market growth has also affected China's market. In 2007, China's IC market was 541 billion yuan, up 17.6% year-on-year, 1.5% lower than the expected growth rate in 2006, slowing down compared with the previous years. China's IC market began to grow steadily from high-speed growth. “The IC market growth rate has gradually decreased with the expansion of the market base. At the same time, the strong demand of the downstream electronics manufacturing industry has contributed to the high growth rate of the Chinese semiconductor market in the past five years, but as the downstream products become saturated, the output growth rate slows down. Even the decline has directly affected the growth of China's semiconductor market,” said Lu Guoying, senior vice president of CCID Consulting. From the application point of view, in addition to automotive electronics, there is no high-speed growth in the market, but the automotive electronics market share is small, unable to drive the growth of the overall market.
The packaging and testing industry is directly pushing the supply of local enterprises in the high-end support industry. In the development of IC industry in China, the growth rate of IC design sales revenue dropped sharply from 49.8% in 2006 to 21.2%, and its growth rate was lower than the overall growth of the IC industry for the first time. "Some IC design companies have a single product, and the market is becoming saturated. At the same time, there are many bright spots in the development of new products, but they have not yet formed a scale. In particular, the competition in the consumer IC market is fierce, and the price war between enterprises is intensifying, resulting in sales performance of some enterprises. The decline and the growth rate of the design industry have slowed down." Yu Zhongyu said.
Although the growth rate of the domestic chip manufacturing industry in 23% in 2007 was lower than the 32.5% in 2006, it was still much higher than the global growth rate. This is mainly due to the expansion of production capacity driven by new investment. First-tier manufacturers such as SMIC and Hynix-ST are actively expanding their production capacity. SMIC Chengdu 8-inch line, Hua Hong NEC 8-inch line and SMIC Shanghai 12-inch line have been put into production. Intel's 12-inch line also ended in Dalian.
In 2007, most of the sales revenue of the top ten semiconductor packaging and testing companies in China had double-digit sales, which drove the growth of 26.4% in the domestic packaging and testing industry in 2007. In 2007, Nantong Fujitsu and Tianshui Huatian were listed on the Shenzhen Stock Exchange. Together with the Changjiang Electronics Technology Co., Ltd., which was listed on the Shanghai Stock Exchange in 2003, three domestic IC packaging and testing companies have successfully listed.
"In terms of technology, there are still gaps between domestic and domestic companies compared with internationally renowned companies, but we have gradually mastered the higher-end packaging technologies, such as FBP (Planar Package) technology and CSP (Chip Scale Package) independently developed by Changjiang Electronics Technology. Technology, Nantong Fujitsu's MCM (multi-chip package) technology, etc.. Jiangsu Yanchang Technology General Manager Yu Kangkang is quite satisfied with the performance of the domestic IC packaging and testing industry.
As a manufacturer of materials and equipment for the IC support industry, the performance of local companies is not satisfactory. The dicing machine, loading machine, sewing machine and other equipment required for the IC packaging and testing industry, as well as plastic packaging materials, silver paste, gold wire, etc., need to be imported in large quantities, and the supply rate of local enterprises is very low.

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