Problems in the Development of China's IC Industry

How big China's integrated circuit market will have in China's IC industry? Many people have already speculated. In the next fifteen years, the average growth rate of the market demand for integrated circuits in China will be 25 times the average growth rate of China's GDP. This “reflection reflects the fact that our country has achieved 35 times the reality during the “Ninth Five-Year Plan” period. On the other hand, we also believe that it is impossible to maintain such a high proportion for a long period of time, but we are convinced that it is guided by the principle of “informatization to promote industrialization”. The ratio of the growth rate of the demand for integrated circuits in China to the growth rate of GDP will not be less than 2.5 times, and the average growth rate of integrated circuit sales in China will be about 4 times the average growth rate of China's GDP. The continuation of 4.1 times during the "Ninth Five-Year Plan" period in China also corresponds to the current proportion of development in the world.
By 2015, the total demand for integrated circuits in China will be roughly equal to the total sales of integrated circuit products, and will reach around 8% of the world's integrated circuit sales market. This shows that China's IC consumption demand and production and supply have been basically balanced, and the amount of imports and exports can be basically the same. If the technology can also reach the world level at that time, we can basically achieve our own needs. By then, even if we have fully achieved this goal, the total sales volume of integrated circuit products in China will only account for about 1/12 of the world market, and our population will be around 1/5 of the world's population. Therefore, we can only be a large-scale production of integrated circuits, but not an integrated circuit industry powerhouse.

In recent years. The development trend of China's integrated circuit industry is encouraging. However, it is disturbing that up to now, China's electronic information product manufacturing industry is basically still an assembly industry, and key components and parts have mainly had to import independent development capabilities. The industrial base is very weak, so it cannot be said that the destiny of China's information industry is in its own hands. The reason is that we have not yet established our own IC industry with innovative capabilities and competitive strength. just now. China's IC self-sufficiency rate is only about 1/10. The total sales volume of IC products in China is only about 1/100 of that in the world market, and the total industry technology level is about two generations behind advanced countries. The main problems that need to be resolved urgently to speed up the development of China's integrated circuit industry are the following: 1. To create a good environment for development.

As integrated circuits occupy a core, fundamental, and irreplaceable important position among the contemporary high-tech groups, it is necessary to create a more appropriate microclimate for its accelerated development. The State Council announced the implementation of a number of policies that encourage the development of the software industry and the integrated circuit industry. This has opened the door for the formation of this microclimate. Under this condition, the development environment of China's integrated circuit industry must be able to integrate with the international market; it can enhance the competitiveness of Chinese enterprises in the international market.

2. Select the entry point correctly.

In the world of IC manufacturing, packaging, testing as the main integrated circuit manufacturing industry. After 4 years of rapid development, the number of integrated circuit companies (Fabless) has reached a relatively mature stage. This not only marks the maturity of integrated circuit production and processing technology, but also enables the entire integrated circuit industry to enter a new era. development stage. By 1998, the American integrated circuit companies rarely started from a production plant. The use of a non-technical line for commissioning was the most common form of new construction. At the same time, the growth rate of integrated circuit production lines in some Asian countries and regions has gradually exceeded that of the United States and Japan.

The newly-emerged fabless IC companies all have a sudden mountain feature, which is that they are closer to the market. In the mature period of integrated circuit manufacturing process, the development of integrated circuit application market has become the key to the development of integrated circuit industry.

After 30 years of development, China's integrated circuit industry has developed. It has now formed: a good industrial foundation, but for a long time, there is a problem - it is plaguing us. That is why our integrated circuit chip production line cannot directly enter the market after it is completed? Why is the main product of the integrated circuit that we need in China cannot supply directly? This phenomenon of contradictory supply and demand without intersections is indeed a question worth considering deeply. In the study of this issue, we first saw that the types of integrated circuits used in China are almost all imported from abroad with the already established electronic machines. We must enter the market to implement alternatives; however, The extremely rapid development of high-tech industries has made traditional alternative import methods ineffective. Secondly, everyone also admitted that overseas intentional containment and fierce competition have indeed caused us many difficulties. Third, in particular, it is very clear that information products have profound cultural connotations. The continuous influx of a large number of information products will seriously challenge the Chinese nation’s outstanding cultural traditions. The disappearance of a nation’s outstanding culture means that this nation will Assimilated. Of course, we will not wait for such problems.

3. Chip manufacturing is integrated circuit industry Integrated circuit is a complete industry. In general, it should include integrated circuit design, chip manufacturing, packaging and testing. Integrated circuit equipment and special materials manufacturing. And integrated circuit application development and information services. Sometimes people refer to it as five industries (design, chip manufacturing, packaging support, and service) coexist; sometimes people also refer to integrated circuit manufacturing itself as a three industry (design, chip, package) . However, no matter how the division or under what circumstances, integrated circuit chip manufacturing is always the core body of the integrated circuit industry. When we emphasize application cut-in and design advance, it is by no means despising the development of the chip manufacturing industry. On the contrary, it is creating conditions for the development of integrated circuit chip manufacturing. Without chip manufacturing, the IC industry is as if it has been dug out of the heart. A fragile IC industry in chip manufacturing is, at best, a serious heart patient. Therefore, we believe that the attitude of “does not require all but use” is a one-sided approach to chip manufacturing; the “does not require all but seeks use” approach is more in line with China’s national conditions.

4. To strengthen the application of research and industrial development to the development of China's integrated circuit industry, said the Ministry attached great importance to it, and to do it has come to an end. This is not only a reason why there is no intersection between supply and demand, but also a source of weak industrial innovation capabilities. Research and development is a continuous process, with basic research at the front end. The commercialization of product development is at the final end, and pre-commercial research and development lies between these two extremes.

these years. Our investment in microelectronics technology and integrated circuit industries are almost exclusively focused on establishing integrated circuit companies. As a result, basic research has been relatively weakened, and application research and industrial development have basically been abandoned. This should be taken as a warning. Generally speaking. The main part of product commercialization development should be the enterprise. Investment activities including research and development investment that are carried out for the enterprise are based on the expected effect of investment return. The recent return of such investment is high for high-tech industries. In this way, companies will have enthusiasm in this area. Investment in basic research Of course, the government is the main body, because the investment in basic research can ultimately bring about extraordinary returns to the whole society, but it cannot be fully compensated for individual investors. The research and development of commercialization should also be based on government investment. And take the government to start, political affairs, enterprises combined methods. This is because the individual risks of such inputs are large. The recent rate of return is also relatively low. The closer the project is to the front end, the closer to the back end the easier it is to integrate with the company. Now countries all over the world have generally believed that investing in front-end and mid-end research and development is the government’s investment in the state’s operations. It is a responsibility of successive governments to the country.

China IC Network Report