China’s Integrated Circuit Sector Is Growing Rapidly, But There Are Holes to Be Filled, Experts Say

China’s Integrated Circuit Sector Is Growing Rapidly, But There Are Holes to Be Filled, Experts Say

Xu Wei

Date: Thu, 10/12/2017 - 19:28 / Keywords: Integrated Circuits, MANUFACTURING, Semiconductors, CAS, Microelectronics
China’s Integrated Circuit Sector Is Growing Rapidly, But There Are Holes to Be Filled, Experts Say
China’s Integrated Circuit Sector Is Growing Rapidly, But There Are Holes to Be Filled, Experts Say

(Yicai Global) Oct. 12 -- The rise of integrated circuit manufacturing in China has seen a nationwide investment spree, but there are still a number of weaknesses that need attention, Economic Information Daily reported today, citing experts. Three key problems are a lack of control over core technology, a low market share and inadequate equipment and materials.

The domestic integrated circuit manufacturing sector boomed last year, reaching output of CNY112.7 billion (USD17 billion) and surpassing the CNY100-billion milestone for the first time, Chen Xian, deputy director of the China Semiconductor Industry Association, said at the 20th China IC Manufacturing Annual Conference 2017, which took place recently.

However, things don’t look so bright just yet. IC has been a key import in China for many years, and the recent growth in domestic manufacturing has largely contributed to the development of foreign companies in China, with overseas businesses now making up half of the top ten chip makers in the country and commanding 56 percent of their revenue.

Chinese firms obviously lag behind international rivals in terms of advanced process technologies. Experts suggest domestic wafer making technology is two generations behind advanced international levels, and there is a lack of large-scale integrated device manufacturing companies in the country.

In order to achieve better development in China, costs need to be cut and value should be placed on supply chain guarantees, said Ye Yianchun, director of the Chinese Academy of Sciences’ Institute of Microelectronics. Only with a leading supply chain can a sound industry ecosystem be formed, he added. The means quickly developing an industry chain to propel long-term development.

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Keywords: Integrated Circuits, MANUFACTURING, Semiconductors, CAS, Microelectronics