Mainland China invests heavily in IC industry

Mainland funds have been bought all over the world, and the semiconductor industry is also the same. 10 years ago, industrial policies supported foundry foundries. SMIC was established at that time. Although it was not successful, the mainland officials proposed a stronger policy to establish a national chip industry. Supporting Funds, involving RMB 120 billion in establishing the IC industry. At this time, it was the time when the Taiwanese industry was the least confident that many Taiwanese IC design companies did not sell to foreign companies, otherwise they sold them to the mainland. However, the industry believes that the key is talent and management, and it is only by breaking the obstacles that they can rise to the next level.

Ten years ago, China’s industrial policy supported Hua Hong NEC, SMIC, and Grace Semiconductor to cover 8 wafer fabs. UMC was also in the midst of that wave to establish a semiconductor company in the mainland, but it was not a success. TSMC still dominates the global foundry industry.

Nowadays, the mainland has resorted to a stronger industrial policy. Not only has it invested heavily in fostering the IC industry, wafer foundry SMIC has been fiercely catching up in recent years. It will also enter the advanced production process with 28 nanometers of production in early 2015, winning global Qualcomm, the maker of IC design, not only found itself in the wafer foundry industry, but also led the rise of the surrounding IC design companies.

The most shocking news in the near future was Hua Capital Management, one of the mainland's national chip industry support funds. It proposed a $1.6 billion acquisition of OmniVision, a global CMOS company, to shake up the relevant industrial supply chains, including TSMC, Riyueguang, and counterfeit products.

Semiconductor companies said that although OmniVision is a major customer of TSMC, it once transferred to SMIC for a film and even announced that it had purchased SMIC's Wuhan plant. Since the beginning of 2014, the revenue of the Wuhan plant has not been calculated. Core International's overall revenue, only on the table OmniVision has not announced the purchase of the factory, the spread is hosted by the Wuhan government.

However, production of the OmniVision plant has been unfavorable and has returned to TSMC. However, for TSMC, OmniVision has not been a loyal customer. Therefore, it is no surprise that the cooperation with foundries in the mainland will not be unexpected.

Undoubtedly, the next mainland China wants to establish is the capability of memory chip technology. For standard products such as DRAM chips, they have been controlled by Micron, Samsung Electronics and SK Hynix. Therefore, the Luyuan plant will be designed and developed into peripheral technologies such as SDRAM and SLC NAND Flash, and will be actively involved in overseas investment. Technology companies, or the establishment of memory IC design companies, are one of the future trends.