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Development status and opportunities of China's integrated circuit design industry

With the continuous development of the integrated circuit industry, the output value of chips has also soared year after year, and China's chip imports have also risen. According to Chinese customs data, the number of imported chips in China in 2018 was 41.757 billion, an increase of 10.8% year-on-year, and the amount of imports reached US $ 312.058 billion, an increase of 19.8% year-on-year. This is the first breakthrough in China's chip imports 300 billion US dollars, ranking first in China's imports. Although the current market share of Chinese chips is not large, the development momentum is very fierce. At the 2019 China Chip Application Innovation Forum, the Secretary General of Shenzhen Semiconductor Industry Association Chang Junfeng predicted that the sales of China's integrated circuit design industry will Crossing the 300 billion yuan mark, there are 1,780 chip design companies. The Shenzhen design industry continues to lead the country, breaking through the 100 billion mark, and the global 500 billion US dollar semiconductor market is not enough in China. Under the general situation of the transfer of national funds and the global chip industry, the country is in a good position, and China's core industry is entering an accelerated period.

The chip field is a long-term and large-investment industry, which has not seen results in a short period of time. The development of enterprises is also greatly affected by the market environment. The development of the chip industry requires the joint promotion of countries, enterprises and talents. This is urgent. . Mr. Chang Junfeng, Secretary General of Shenzhen Semiconductor Industry Association, said that the current trade deficit of the chip industry is very large. In 2018, the global integrated circuit output value was 477.9 billion, and the import volume is expected to exceed 300 billion in 2019. Currently, Shenzhen integrated design industry For example, China's high-end chips are scarce, and there are missing areas including IP, EDA, materials, and equipment. This is the current status of China's industry. In the large international environment, the Sino-US trade war has hit China's lack of core technologies, which also reflects the gap between Chinese technology and American technology. In fact, as early as 2000, the Chinese government began to focus on integrated circuits, including market-oriented operations, policies, special integrated circuit policies in 2014, and a series of measures to build an integrated circuit power by 2025. Development and construction of the neck area. At present, the number of cities in our country participating in the integrated circuit industry is increasing, which shows that the country attaches importance to the integrated circuit industry. Mr. Changjun Feng believes that if a city wants to develop the integrated circuit industry, the most important thing is to build a good industrial environment and strengthen the construction of professional talents. Only by doing a good job of these basic projects, funds and enterprises will follow, and the landing market will increase. .

The state is also increasing funding support for the integrated circuit industry. Since 2014, the state has changed from over 100 billion large funds to various fund scale investments. The country has formed a huge industrial investment. Take Shenzhen as an example. Shenzhen IC design is very advantageous. Shenzhen has special funds to support the development of the industry. The global semiconductor industry increased by 13.7% last year to reach 468.8 billion U.S. dollars. This year's forecast shows that the growth rate of the global market will decline slightly, and the plunge of memory chips is an important reason. The global semiconductor company ranking is still dominated by Europe and the United States. Except for Hisilicon, there are basically no semiconductor companies in the global top rankings. One of the highlights this year is that Intel has regained the leader that has been lost for two years. It ’s 60%, and the US market size is 22%.

With the evolution of Moore's Law, the growth of technology for performance is not as fast as before, which is also a characteristic of the post-Moore era. Mr. Chang Junfeng, Secretary General of the Shenzhen Semiconductor Industry Association, said that silicon technology may have reached a bottleneck. At present, China's integrated circuit companies The number is growing rapidly. From the perspective of the development of the global semiconductor industry, semiconductor companies have fallen into a wave of mergers and acquisitions, mainly technology-based mergers and acquisitions, and the merger between certain technical details, which is different from previous scale mergers and acquisitions. Rough mergers and acquisitions have been completed, and the trend of mergers and acquisitions will continue, but there will be no large-scale merger of output value. Mr. Changjun Feng mentioned that non-innovative wafer fabs are also facing the risk of being eliminated from the market. The old first- and second-generation capacity requirements are decreasing. With the development of new applications, new processes such as compound semiconductors, third-generation New requirements such as the generation of semiconductor processes, old process plants face huge challenges.

Looking back at the development of China's semiconductor industry, the development of China's semiconductor industry can be simply divided into three stages. The first stage is the era of the so-called research institute. We did not start much later than the United States, but our research and development was slower than the United States. The second stage is represented by the 908 and 909 projects, and the entire industrialization development has entered the government-led industrialization stage. The third stage is from 2000, especially the chip design companies represented by Shenzhen began to rise, including the return of Silicon Valley, a large number of start-up integrated circuit design companies, such as SMIC, etc., these companies began to continue to grow and grow. Mr. Chang Junfeng, Secretary-General of Shenzhen Semiconductor Industry Association, said that the three major stages of integrated circuits have made great progress from horizontal industries to manufacturing, packaging and testing, design, equipment, equipment, and materials. We must also look at semiconductors. The advanced nature of the industry and the materials and equipment used in it are no less difficult than designing and manufacturing integrated circuits.

In 2018, our import volume exceeded 300 billion, and China occupied more than one-third of the global semiconductor industry's application market. In 2019, it is expected that the global semiconductor will enter a stage of slight attenuation, and our semiconductor may still maintain double-digit percentage growth . Mr. Chang Junfeng, Secretary General of Shenzhen Semiconductor Industry Association, believes that this is the promotion of national policy and market. At present, international semiconductors are undergoing mergers and acquisitions, and China's integrated circuit enterprises have entered a stage of blossoming flowers. Enterprises are mainly concentrated in three regions, the Yangtze River Delta, the Pearl River Delta and the Bohai Economic Circle. In 2019, the number of our integrated circuit companies will continue to increase, due to the development of 5G, artificial intelligence and the Internet of Things applications.

The integrated circuit industry in Shenzhen is developing very fast. It is expected to exceed 100 billion yuan in output value in 2019. More than 90% of them are design companies. There are more than 160 integrated circuit companies in Shenzhen. In addition, Internet of Things and artificial intelligence companies may 200, from the perspective of the number of chip companies, Shenzhen does not have the advantage, and the industrial coverage in East China is more comprehensive. From design to manufacturing, packaging and testing, it is very balanced. This is the need for government and fund investment in South China. Questions to consider. The traditional advantages of China's integrated circuit applications are communication, touch control, multimedia and consumer electronics. Industry and automotive still need to work hard and develop. In the future, around intelligent equipment, industry, automotive electronics and the Internet of Things, all need to break through. . Shenzhen integrated circuit companies have played a leading role in China's industry. The best advantage of the industry is the weak government and the guidance of the big market.

At present, from the perspective of the development trend of the semiconductor industry, integrated circuits, like other industries, will undergo large-scale transfers. The trend of transfer is unshakable. Based on 5G communications, it will drive the development of new applications of artificial intelligence and the Internet of Things. In the future, applications will gradually land and explode. National policies, as well as financial science and technology innovation boards, and ChiNext will support the semiconductor industry. Now is the best time for the development of China's semiconductor industry. Mr. Chang Junfeng, Secretary-General of Shenzhen Semiconductor Industry Association, said that to gradually develop from the traditional consumer support IC design to the integrated circuit industry drive, it requires competition from enterprises and new application promotion, such as industrial automation, smart medical and other industries. It is an opportunity to develop high-end medical chips. It also requires the government to increase policy support, capital investment efforts, and enterprises to increase research and development efforts.

For the market, there are good factors as well as disadvantages. Including national policies and application innovation can drive the development of integrated circuit design enterprises. As far as private investment is concerned, the investment and design industry will get unexpected results. But for now, China ’s overall design industry is relatively backward. From the field of manufacturing and packaging and testing, Mr. Chang Junfeng believes that China is lagging behind in high-end packaging and testing processes and high-end manufacturing processes, and lacks materials and equipment. It is even behind, 95% of the market is in the hands of three companies, which are the areas that need to be broken in the future.

Today, we are a globalized and integrated market. Mr. Chang Junfeng, Secretary-General of the Shenzhen Semiconductor Industry Association, said that after entering this era, China needs balanced development. Manufacturing processes, talents, and investment all need to be developed. To promote the rapid development of enterprises. There are many traditional low-end packaging factories in China. The funds can pay attention to the high-end packaging companies and market needs. Equipment and materials will also develop rapidly in the future.


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