The integrated circuit industry is a general description of the market sales of each segment of the integrated circuit industry chain, which includes not only the IC market, but also the IP core market, the EDA market, the chip foundry market, the packaging and testing market, and even extends to the equipment and materials market.
The IC industry is no longer dependent on CPU, memory and other single device development, mobile Internet, triple-network convergence, multi-screen interaction, intelligent terminals have brought multiple market space, business model innovation for the market to inject new energy. At present, China's IC industry has a certain foundation. Over the years, China's IC industry has gathered the vitality of technological innovation, the ability to expand the market, the power of resource integration, and the vast market potential for the industry in the next five to ten years to realize the rapid development of the industry, and to step up to a new level to lay the foundation.
How to correctly view the IC industry? Is the "lack of core" environment a challenge or an opportunity for the IC industry? What are the future development trends?
01
Status quo of the industry development
(a) Continuous growth in IC production
Since 2016, China's IC production has been steadily increasing. growth of 16.2%; in October 2021, China's integrated circuit production reached 297.54 billion blocks, a year-on-year increase of 48.1%.
(B) The scale of the IC industry is growing at a high speed
From 2016 to 2020, China's IC industry sales grew from 433.55 billion yuan to 884.8 billion yuan, and the sales of the IC industry in the first three quarters of 2021 have reached 685.86 billion yuan. This is mainly driven by downstream markets such as the Internet of Things, new energy vehicles, smart terminal manufacturing and new generation mobile communications. In the downstream demand to maintain a high degree of boom, industrial policy support, industrial capital investment continues to increase and other factors, China's integrated circuit industry scale continues to maintain high growth.
(C) IC import and export deficit
China's IC industry has a low self-sufficiency rate, especially in the field of medium and high-end chips, the phenomenon of dependence on imports is more serious. 2020 IC import and export volume deficit of 283.7 billion, import and export amount deficit of 233.44 billion U.S. dollars. 2021 the first three quarters of the IC import and export volume deficit of 245.44 billion blocks, import and export amount deficit of 205.44 billion dollars. In the first three quarters of 2021, the IC import and export volume deficit of 2454.4 billion blocks, import and export value deficit of 203.99 billion U.S. dollars.
(D) IC Industry Concentration and Interaction
IC is mainly concentrated in East China, Northwest China, South China, and in 2020, East China IC production accounted for 51.6%. Jiangsu IC production is the highest, accounting for 32%. Gansu Province, Guangdong Province, Shanghai integrated circuit production accounted for more than 10%.
02
Industry Key Players
(1) Semiconductor Manufacturing International Corporation
Semiconductor Manufacturing International Corporation (Semiconductor Manufacturing International Corporation) (SMIC) (HKEx stock code. Semiconductor Manufacturing International Corporation ("SMIC", HKEx stock code: 00981, SSE Technology and Innovation Board stock code: 688981) and its subsidiaries are one of the world's leading integrated circuit ("IC") foundries, as well as one of the most technologically advanced, well-supported, largest, and multinational integrated circuit ("IC") manufacturing conglomerates in Mainland China, providing foundry and technology services at different technology nodes ranging from 0.35 micron to 14 nanometers.
The company's IC foundry business is based on 8-inch or 12-inch wafers, using hundreds of specialized equipment and materials, based on well-designed process integration solutions, and thousands of process steps, to build complex and precise physical structures on wafers, and to realize customer-designed circuit graphics and functions.
(B) UVG Microelectronics
UVG Microelectronics Corporation (stock code: 002049) is a core enterprise of UVG Group Limited, and is one of the largest listed companies in China in terms of integrated circuit design. The company's two main businesses are intelligent security chips and special integrated circuits, as well as the layout of semiconductor power devices and quartz crystal frequency devices, providing chips, system solutions and terminal products for a variety of industries such as mobile communications, finance, government, automotive, industry, and the Internet of Things.
(C) Silan Micro
Hangzhou Silan Microelectronics Co., Ltd (stock code: 600460) is a high-tech enterprise specializing in integrated circuit chip design and production of semiconductor microelectronics-related products. Its main products include integrated circuits, semiconductor discrete devices, and LED (light-emitting diode) products. Silan Micro has developed from a pure chip design company into one of the few integrated semiconductor product companies in China with IDM mode (integrated design and manufacturing) as the main development mode.
(4) Changdian Technology
Jiangsu Changdian Technology Co., Ltd. is a leading global provider of integrated circuit manufacturing and technical services, providing a full range of one-stop services for the manufacture of finished chip products, including integrated circuit system integration, design simulation, technology development, product certification, wafer in the test, wafer level mid-channel packaging test, system level packaging test, chip finished product testing and can be used to provide direct shipping to semiconductor customers around the world.
The company provides direct shipping services to semiconductor customers around the world.
With highly integrated wafer-level WLP, 2.5D/3D, and system-in-package (SiP) packaging technologies, and high-performance FlipChip and Leaded Interconnect packaging technologies, Everlight's products, services, and technologies cover mainstream IC system applications including network communications, mobile terminals, high-performance computing, in-vehicle electronics, big data storage, artificial intelligence, and the Internet of Things, Industrial Intelligent Manufacturing and other fields. With two R&D centers and six IC manufacturing bases in China, Korea, and Singapore, and business offices around the world, GIGABYTE is able to provide close technical cooperation and efficient industrial chain support to its global customers.
(V) Allwinner Technology
Zhuhai Allwinner Technology Co., Ltd. (stock code: 300458) was founded in 2007, is an excellent intelligent application processor SoC, high-performance analog devices and wireless interconnect chip design manufacturers. The company's main business is the research and development and design of intelligent application processor SoCs, high-performance analog devices and wireless interconnect chips. Our main products are intelligent application processor SoCs, high-performance analog devices and wireless interconnect chips. The company's products are widely used in intelligent hardware, tablet PCs, smart home appliances, automotive networking, robotics, virtual reality, network set-top boxes, as well as power analog devices, wireless communication modules, intelligent Internet of Things and other product areas.
03
Regional Layout
(A) Beijing
Leading the development of high-precision industries with digitalization. Optimize policies for the development of high-precision industries and promote the landing of major projects. The company is also working to expand the scale of advantageous industries such as information technology, healthcare, smart manufacturing, blockchain and advanced computing, optimize and strengthen strategic emerging industries such as integrated circuits and new materials, promote the construction of high-level automated driving demonstration zones, and accelerate the development of industries such as satellite aerospace, high-end precision instruments and sensors. The implementation of the industrial base re-engineering and major technological transformation and upgrading projects, the implementation of small and medium-sized enterprises digital empowerment action plan, and the promotion of industrial digitalization, intelligent green upgrading and transformation.
Investment of 7.6 billion U.S. dollars in Semiconductor Manufacturing Beijing logic chip 12-inch factory, as well as the construction of memory chip manufacturing 12-inch factory; Yandong 8-inch production line capacity to climb, Saiwei 8-inch MEMS production line progress.
(2) Shanghai
Strengthen the function of science and technology innovation source. The company's strategy is to accelerate the creation of national strategic scientific and technological strengths, the construction of national laboratories, and to strive for more major scientific and technological infrastructures to settle. It will also strengthen international collaborative innovation and continue to organize forums for the world's top scientists. We will make every effort to implement the three major "Shanghai Programs" (hint: integrated circuits, artificial intelligence, and biomedicine), and accelerate the breakthrough of a number of key core technologies. Accelerate the cultivation of a number of "hard technology" enterprises listed on the Science and Technology Board. Construction of the Shanghai Intellectual Property Protection Center to create an international intellectual property protection highland.
Strengthen the function of leading high-end industries. Efforts to enhance the supply chain of the industry chain independent and controllable ability, vigorously build a number of strategic emerging industries growth engine, to carry out civil aircraft manufacturing, high-end medical materials, such as complementary chain of strong chain of action, to promote integrated circuits, new energy automobiles, high-end equipment and other advanced manufacturing industry agglomeration development.
Advanced logic chip (SMIC, Hua Hong Group), Gekko CIS chip factory, Wintech automotive chip manufacturing plant, Jetta semiconductor factory, the progress of the new micro-semiconductor 6-inch plant, EDA company State Micro Si Er core, the probability of Lun IPO.
(C) Tianjin
Accelerate the promotion of independent innovation of the original innovation source capacity. With the three-year action plan for science and technology innovation as a handhold, accelerate the construction of major scientific and technological facilities and platforms, create a new generation of national pilot areas for the innovative development of artificial intelligence at a high standard, accelerate the construction of a new generation of supercomputers, large-scale earthquake engineering simulation and research facilities, the National Innovation Center for Synthetic Biotechnology, promote the construction of the National Center for Applied Mathematics and the State Key Laboratory of Component Traditional Chinese Medicines, and plan for the construction of the Haihe Laboratory. We will accelerate the upgrading of the innovation capacity of technology-based enterprises, and the total number of national high-tech enterprises will exceed 8,000. We will build the "first station" for the transformation of scientific and technological achievements of universities and the "core incubator" for regional innovation, and cultivate three municipal university science and technology parks throughout the year. The establishment of the Beijing-Tianjin-Hebei Science and Technology Achievement Transformation Fund and the construction of the China (Tianjin) Intellectual Property Protection Center are of high standards.
Accelerate the construction of modern industrial industrial system. Adhere to the manufacturing city, the development and implementation of the three-year action plan for the construction of manufacturing city. Promote the "China Xinchuang Valley" "Cell Valley" construction, stronger and larger biological drugs, modern Chinese medicine, high-end medical equipment and other industries, the construction of modern Chinese medicine innovation center, Beichen Beijing-Tianjin Medicine Valley, accelerate the layout of hydrogen energy industry. Develop and expand high-end equipment, automobile, petrochemical, aerospace and other advantageous industries, and promote metallurgy, textile and other traditional industries to upgrade high-end, intelligent and green. Vigorously develop intelligent manufacturing and build 100 digital workshops and intelligent factories. Efforts to build integrated circuits, automotive networking and other 10 industry chain, improve the rate of industrial support, the development and growth of information security, power batteries and other national advanced manufacturing industry clusters. Promote the Samsung Electro-Mechanics ceramic capacitor three expansion, Aixu Technology high-efficiency crystalline silicon batteries and other projects to put into production, accelerate the second phase of the Shuguang base, FAW Toyota, Evergrande new energy automobile project construction.
Progress of the expansion of Semiconductor Manufacturing International's (SMIC) Tianjin plant.
(4) Chongqing Municipality
Enhance the modernization of the industrial chain supply chain. Put the focus of economic development on the real economy and accelerate the construction of a modern industrial system.
Continuous development of advanced manufacturing. Automotive industry, accelerate to high-end, intelligent, green upgrading, strengthen vehicle control software, automotive chips and other technology research and development applications, promote Bosch Qingling hydrogen fuel engine, BYD power battery, leading the nest of 9 gear automatic transmission and other projects, expand Changan, Jin Kang, Geely and other new energy automobile production and marketing scale, high standards of construction of car networking pilot area, continue to enhance the value of the vehicle brand. Electronics industry, adhere to the R & D, manufacturing synchronization, expanding power semiconductor, ultra-high-definition video, smart home and other industrial development space, to support the development of the United Microelectronics Center silicon-based optoelectronics project to accelerate the CR Microelectronics 12-inch power semiconductor, BOE 6th generation flexible display panels, Konka semiconductor photovoltaic industrial park and other project construction.
Accelerate the development of digital economy. To build a "core screen device nuclear network" industry chain, to expand the scale of integrated circuits, new display industry, to enhance the level of development of advanced sensing, electronic components, to enrich the intelligent terminal products, to improve the industrial Internet system, to accelerate the construction of the regional and industry identification and resolution of the second level of nodes, and to cultivate and grow the industrial Internet platform enterprises.
China Resources Micro Chongqing 12-inch power device production line construction, the United Microelectronics Center silicon production line construction.
04
Opportunities and Challenges
What are the latest domestic and international developments in the IC industry? What are the future development trends? What are the opportunities and challenges facing the IC industry in the "lack of core" environment? Welcome to get the full text of this issue of "Industry Hot Topic Analysis Report - IC Industry" by private letter to Xiaoxin.
Private letter to get the full text
The economic market is changing, the financial market ebb and flow, the policy winds to navigate the situation in the future, and as the direct recipient of these changes in the industry, its own operation, technological change, structural adjustment and other factors will directly or indirectly play a role in the economy, finance, and promote the introduction of certain policies. The macro aspects involved in the above. Macro links involved in the above, the meso-environment is always bursting with hot events. Any one of the hot events in a certain range will have a direct or indirect impact on the operation of the industry as well as the next step in the development of the economic and financial situation. Banks, as the bloodline running through the macro, meso and micro of the economy, may have opportunities or risks for their business as a result of any one of the hot events. In response to this, Union Trust has specially launched the "Industry Hot Topics Analysis Report".
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