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The big challenge of the mainland 5G industry: chip technology is being paralyzed

China is preparing to lead the global and comprehensive implementation of 5G communication technology. However, due to the over-reliance of Western chip manufacturing technology, local companies are facing challenges in industrial development.

The official newspaper "Global Times", which has considerable influence in China, reported that Liu Kun, a semiconductor industry analyst based in Beijing, said in an interview on the 24th that China's chip manufacturing industry is still tightly bound by Western partners in developing 5G technology. The throat, ZTE (ZTE) is an example. Although the Chinese semiconductor industry can successfully design 5G chips, the process of 5G chips is relatively complicated, and the land-based enterprises still rely on others for help. Although the land-based enterprise can make 2G chips, this is already the technology of the three generations. It may be difficult to catch up with other countries in the short term.

According to GSMA Intelligence, China is expected to become the world's largest 5G market by 2025. The China Institute of Information and Communications Research (CAICT) predicts that by 2030, 5G's economic output can reach as much as 6.3 trillion yuan (equivalent to $946.8 billion).

The Nikkei News English version reported on September 17 that equipment and materials are critical to the semiconductor manufacturing industry, but according to the International Semiconductor Equipment Materials Association (SEMI), the proportion of land-based companies in the global market is still Less than 1%. An official of the Ministry of Science and Technology of China pointed out that to develop these industries, it takes years of basic scientific research to build professional technology, and it takes years to pass the durability and quality verification, and Chinese chip makers and designers who do not want to spend more energy. Business, therefore extremely dependent on foreign suppliers, and now finally tasted bitter results due to trade wars.

However, analysts believe that this is expected to accelerate the pace of research and development in the Chinese chip industry and achieve self-sufficiency goals. The State Council of China has listed the chip industry as the top priority for national development in this (2018) year. It is estimated that the second round of sponsorship will exceed 200 billion yuan. Ding Wenwu, president of the National Integrated Circuit Industry Investment Fund, said that the new funds will be used to develop advanced chip technologies such as 3D NAND, processors and FPGAs, and establishing China's equipment and materials supply chain is also a top priority. He pointed out that the Sino-US trade war may not be entirely a bad thing. At least the government, business leaders and the general public have now reached a consensus to build a Chinese version of the chip supply chain.

China's 5G commercial development has entered a comprehensive sprint phase, and the industry chain is actively preparing for this. Local 5G mobile phone chip manufacturers are also accelerating their pace.