According to a forecast, by 2020, 85% of China's semiconductor consumption from overseas, only 15% are locally manufactured; the US chip maker will be the main supplier in China, followed by Samsung Electronics (SamsungElectronics). The Chinese government hopes to reverse this situation, in 2020 so that Chinese manufacturers to fill the needs of local semiconductors in order to enhance domestic semiconductor production capacity in the global smart phone supply chain play an important role.
In order to achieve the above objectives, China to support several revenue scale of tens of billions of dollars of local semiconductor companies in order to achieve the required 150 billion US dollars chip sales. But there are only two Chinese companies with more than $ 1 billion in revenues - HiSilicon Technologies and Spreadtrum Communications.
China intends to expand its supply of semiconductors through the following strategy:
Investing $ 100 billion to build a national ecosystem of semiconductor industries between 2016 and 2020 will help strengthen China's fabless chip industry competitiveness in IP and product design, as well as engineer talent to ensure that graduates from universities The number of new engineers in the academy is sufficient for the industry. Investments include China's official investment group, Tsinghua Unigroup, and Shanghai Pudong Science and Technology Investment Co., Ltd. (Shanghai Pudong Science and Technology Investment Co., Ltd.).
The goal is to reach 1 million wafer wafers per month by 2020; those fabs will support memory and non-memory product manufacturing and will emphasize competitive process technologies. The joint venture will likely be part of the implementation of this plan.
China's monthly production capacity of one million wafer targets, not including those in China, foreign manufacturers of chips; for example, set up factories in Xi'an Samsung, set up factories in Wuxi, SK Hynix (Hynix), set up factories in Dalian, Intel ) And Texas Instruments (TI) in Chengdu.
In 2015, the global market of Chinese brand smart phone shipments totaled 643 million, rather than the Chinese brand smart phone shipments were 594 million; this China's domestic brand shipments than the phenomenon of foreign brands , Mainly because the Chinese market is huge, and the competitiveness of China's mobile phone brand sales in India, South America and other markets outside China also increased.
China's domestic brands to design and sell their own smart phones, and in the local commissioned by Hon Hai (HonHaiPrecision) and other manufacturers foundry production, the next stage is to let the Chinese manufacturers to manufacture mobile phone chips. China chip manufacturers have been in the production of 4G modem chips and application processors, cell phone displays are also produced in China; China's domestic battery suppliers are also expanding production capacity.
Those Chinese companies have a very positive attitude towards market growth and are willing to invest in the local market and take risks; this is quite different from Nokia, Motorola and Blackberry. The current smart phone market competition is the protagonist of Apple, Samsung and local brands in China, other wars may also start, but through efficient planning and integration, will bring practical positive impact for China's semiconductor.
On the whole, while maintaining low-cost concerns, China is experiencing a shift towards higher-end technology. China's automotive, base station, server and other product supply chain continues to increase, LED lighting equipment production is also in high growth. Although China still needs a lot of efforts to achieve its goal, but the local attitude of a firm entrepreneurial environment, as well as strong financial support from the government, the future development should not be overlooked.