Integrated circuit "core disease" eagerly awaits policy "good medicine"
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Integrated circuit "core disease" eagerly awaits policy "good medicine"

(Summary description)If an electronic device is compared to a person, the integrated circuit chip is the heart of the person.

Integrated circuit "core disease" eagerly awaits policy "good medicine"

(Summary description)If an electronic device is compared to a person, the integrated circuit chip is the heart of the person.

  • 2013-11-18

If an electronic device is compared to a person, the integrated circuit chip is the heart of the person. As the world's second largest economy, China's "heart" industry has long been highly dependent on imports and is severely controlled by others. However, in recent years, the trend of import substitution of high-tech has arisen, and the realization of localization in the field of high-tech has been highly valued. A number of industry insiders revealed to a reporter from China Securities Journal that the country will introduce policies to support the chip industry in the near future, and the support and determination will be far greater than before. An industry insider said that electronic equipment is now very popular in various fields such as the military, government, and civilian use. It is of great practical significance to realize the localization of the core part of the chip.

The pain of the inner "core"

According to authoritative statistics, in 2012, my country's chip imports exceeded 190 billion US dollars. This is a shocking figure. The amount of chip imports and crude oil imports are almost the same, and the amount of chip imports once exceeded crude oil in the past few years.

"At present, my country's chip industry is heavily dependent on the outside world. About 80% of the domestic chips need to be imported, and almost all of the high-end chips need to be imported. To a certain extent, our electronic products need to look at other people's faces." An industry insider said.

In the entire electronic product, the chip is not only the core of the device, but also occupies a large part of the cost. For the industry, the radiation effect of the chip is very obvious. According to the calculation of the International Monetary Fund, the output value of 1 yuan of chips can drive the output value of related electronic information industry by 10 yuan, and bring about 100 yuan of GDP.

Because of this, developed countries in Europe and the United States have always attached great importance to the chip field. Since the last century, giants such as Intel, AMD, and ARM have been born in the industry. The chip industry is also an industry that requires huge capital support. Intel's capital expenditure in 2013 alone was as high as 13 billion US dollars, accounting for about 15% of its annual revenue.

Compared with developed countries in Europe and the United States, China's chip industry started late and has a weak foundation. In the early years, large-scale chips such as Godson were unable to be industrialized, and key equipment and raw materials have long been dependent on imports. From the perspective of industrial division of labor, the majority of domestic companies engaged in chip business are foundry, with insufficient innovation capability. 

The difficulty of creating a "core"

Since the new millennium, the state has successively issued policies to support my country's chip industry. In June 2000, the State Council promulgated "Several Policies for Encouraging the Development of Software Industry and Integrated Circuit Industry", clarified two goals: strive to make my country's software industry research and development and production capacity reach or approach the international advanced level by 2010, and make my country's integrated The circuit industry has become one of the major development and production bases in the world; after 5 to 10 years of hard work, domestic software products can meet most of the domestic market demand and are exported in large quantities. In February 2011, the State Council promulgated "Several Policies for Further Encouraging the Development of the Software Industry and Integrated Circuit Industry" to further promote industrial development in terms of finance and taxation, investment and financing, research and development, talents, and intellectual property.

Analysts said that after more than ten years of development, the domestic chip industry has grown from scratch, and many companies have emerged in both upstream and mid-stream, but most of the goals proposed by the state have not been achieved.

At present, domestic electronic products have been greatly popularized compared with the beginning of this century, but domestic chips are still unable to meet the needs, let alone exports. A clear example is that after 2007, consumer electronics terminals have entered the era of intelligence, but the chips used in smartphones and tablet computers are basically designed by the British manufacturer ARM, and the chip manufacturers are Apple and Qualcomm. In the world of Samsung, MediaTek, and domestic R&D capabilities, Spreadtrum and RDA can only grab a very limited market share in the mid-to-low-end and white-brand machine markets.

In the traditional PC field, China already has Lenovo, the world's largest complete machine manufacturer, but Intel still dominates the chip field; and in the server field, the global chip power is also firmly held by giants such as Intel and IBM.

The above-mentioned analysts said that currently my country's integrated circuit chip field is mainly faced with two deficiencies: the first is the shortage of talents. Over time, the domestic scientific research force has gradually kept up. More importantly, the technological progress of the chip industry is very fast, and now even the classic "Moore's Law" has been broken. Under this circumstance, the development of the chip industry requires continuous investment of high capital, which is not enough for domestic promotion. As expected.

"The current barriers to entry of global chips have become higher and higher, and it has evolved into a competition between capital investment and enterprise scale." The person said that the total annual investment of major projects such as my country's 863 and "Nuclear High Base" is only a few billion yuan. The RMB, together with the special purpose of integrated circuit equipment, does not exceed 10 billion RMB, which is very different from the top companies in Europe, America and even Japan and South Korea.

An executive of a domestic chip company who did not want to be named told the China Securities Journal that under the dual suppression of technology and capital from international giants, the domestic chip industry has been on the verge of loss for a long time. The current status quo does not change, which is not conducive to the future development of China's chip industry. Domestically, a consensus has been reached on the import substitution of core technologies, and the industry urgently needs more policy support.

A strong "core" agent

In September this year, Vice Premier Ma Kai came to Baidu, Inspur Group, Datang Telecom (marketing, consultation), China Electronics, Qihoo Corporation, SMIC and other companies to investigate and understand the development of the integrated circuit industry and network information security. Ma Kai pointed out that the integrated circuit industry is the core and foundation of cultivating and developing strategic emerging industries and promoting the deep integration of informatization and industrialization. It is an important guarantee for transforming economic development mode, adjusting information industry structure, expanding information consumption and maintaining national security. Speeding up the development of the integrated circuit industry is an important and urgent task at present and in the future.

Market sources said that this shows that the development of the chip industry has received high-level attention. A number of industry insiders revealed to the China Securities Journal that the state will introduce policies to support the development of my country's chip industry, and this policy will be more supportive than ever.

Analysts pointed out that from the perspective of the nature of the industry and past policies, this support plan still has a long time span. Since it takes a certain amount of time for investment and industrial transformation, if a short-term plan is made, it is not conducive to the development of the chip industry. In terms of the amount of support, according to common sense, it is not unexpected that there should be a substantial increase. If the final annual support amount can be matched with the capital expenditure of giants such as Intel, it will be of great significance to the future development of the domestic chip industry.

In terms of industry, recently, the chip industry, which is not a big circle, has been making waves. Two chip design companies listed on Nasdaq have been successively acquired by Tsinghua Unigroup, which has been interpreted by the industry as "the return of overseas high-tech assets". According to industry insiders, it is foreseeable that in the near future, there will be a new round of consolidation in the domestic chip industry, and the promotion of policies is expected to bring the chip industry to a new level.
From the market point of view, some listed companies in the industry are hopeful to win the big business development with the help of a new round of speed-up of integrated circuit chips. An industry analyst said that starting from last year, starting from the relatively achievable field of financial IC cards, the country has already started to promote the localization of chips. Driven by this expectation, the market performance of companies in the industry is quite good. But from a macro point of view, this is only a subdivision and a relatively low-level field. With the introduction of later policies, domestic chips are expected to gradually complete the development from low-end to high-end.

The analyst believes that the industry chain of integrated circuit chips is relatively long. From the upstream point of view, the main ones are Shanghai Belling (market, consultation), Datang Telecom, Tongfang Guoxin (market, consultation), Silan Micro (market, consultation) Inquiry) and other companies have a relatively high proportion of business; mid-stream and downstream packaging, mainly Changdian Technology (markets, consultation), Tongfu Microelectronics (markets, consultation), and Changdian Technology involve more; equipment, Qixing Electronic (market, consultation) products are important means of production for the production of chips. Judging from the current situation, Tsinghua Unigroup has a high probability of launching Spreadtrum and RDA into the capital market in the later stage. Considering that both companies are leaders in the upstream industry, the impact on the current A-share market will not be too big.

"The market seems to be very enthusiastic about going to IOE this year. Everyone thinks it is a good thing. But going to IOE is only a general direction. Does using a domestic brand mean that it is our own?" The above chip Company executives said that most of the chips in the military industry, communications, and smart terminals are still imported. If one day the chips can be basically localized, it will be the final hammer of this import substitution cycle. Only then can it be said that it is Holding the "gate of life" of the industry, it has cleared the last "core" disease for the security problem of my country's information industry.





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