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Hefei Attack Integrated Circuit

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Hefei, the capital of Anhui Province, which has always kept a low profile, has recently gained a reputation overseas for one of China's largest cross-border semiconductor mergers and acquisitions. As the largest single investor, dozens of capitalists in the United Nations have emerged from the competition and purchased Anshi Semiconductor with a global scarcity of high-quality targets of $2.75 billion.

From almost no foundation of IC industry to one after another, the dream of Hefei as a rising star to build "IC Capital" is coming into reality step by step: 10 billion projects have settled down one after another, core technological innovation emerges one after another, annual output value keeps 20% high-speed growth, becoming one of the few key development cities and agglomeration development bases of IC industry in China.

Industry Feelings "Pursuing Dreams"

The largest amount of investment, high quality and scarcity of the target, the merger and acquisition of Anshi Semiconductor is undoubtedly a typical case of China Semiconductor's overseas merger and acquisition experience. This is evident from the comments of the industry on "one of the few large-scale semiconductor standard device suppliers in the world", "having core technology of design, manufacture and sealing", "annual production and sales of about 90 billion devices, many products market share is the first in the world".

To many people's surprise, Hefei, the capital city of inland provinces, played a key role in mergers and acquisitions. Hefei core screen fund, the largest single investor with a total investment of US$1 billion, is at the helm of Hefei Construction. It is the grasp of Hefei Municipal Government to play the role of guiding and enlarging state-owned capital to promote industrial transformation and upgrading.

"Anshi Semiconductor is the real resource needed by China's integrated circuit industry. If the merger and acquisition is successful, it can greatly shorten the gap between China and overseas in this subdivision field,'curve overtaking'!" Huang Hao, deputy general manager of Hefei Construction Investment Corporation, said.

But it is also a decision that risks and opportunities coexist.

"Anshi Semiconductor and its subordinate enterprises are all over the world. They are uncontrollable, and anti-monopoly censorship in Europe and the United States may fail." Huang Hai recalls that after consulting industry experts and repeatedly assessing M&A risks, the team finally took this step cautiously and firmly.

This is not the first time that Hefei has developed its industry with such feelings and courage. It was Hefei Construction Investment that helped Beijing Oriental solve the total investment of 17.5 billion yuan in the 6.5 generation panel production line, and the "screen" in the "core screen fund" came as a result.

This is not the last time. At the end of 2017, Hefei Crystal Co., a 10 billion-dollar project, was put into operation, and Hefei became one of the cities with 12-inch advanced wafer manufacturing plants.

Hefei Changxin, which has invested hundreds of billions of dollars, is also progressing smoothly, and is carrying out the verification and launching of dynamic memory chip technology. Such chips are the largest single category in the integrated circuit industry, and the mainland of China has not yet had its own capacity.

Resist loneliness and dream building

Five years ago, Beijing Junzheng, who started in Zhongguancun, made an important decision to relocate some R&D personnel from Beijing and establish a second headquarters in Hefei High-tech Zone.

Liu Qiang, chairman of Beijing Junzheng, said that there were three reasons for the company to select Hefei in several cities along the Yangtze River:

The integrated circuit industry avoids impetuosity and needs to settle down to do research and development. Hefei has a deep foundation in science and education. It has a long history of "enduring loneliness".

Chip design can not be separated from downstream applications. It needs to communicate closely with the two major markets in East and South China. Hefei is an important railway hub in the Middle East. It can reach Beijing, Shanghai, Nanjing and other major cities in 1 to 4 hours.

This is a technology-intensive, talent-intensive and capital-intensive industry. Local governments need to persevere in building an industrial environment. Hefei has the patience to build an "IC Capital".

Almost at the same time, the automotive electronics team of an international company also ushered in the opportunity of striding forward, becoming an independent company with the support of Hefei High-tech Zone. This is the outstanding technology which occupied the dominant position in the field of chips such as on-board information entertainment and assistant driving in China, with more than 60% market share of rear-loading.

Following this, there are Mega-Easy Innovation in Storage Design of Deep-Farming Market Segmentation, IC Sealing Enterprise Tongfu Microelectronics, the pioneer of smart chips in Cambrian Period... More than 180 enterprises, like the convergence of stars, have formed a whole industry chain in Hefei covering design, manufacturing, sealing, material and equipment links, with annual output value increasing by about 20%.

From scratch to strength

The outstanding technology growing up in Hefei can be regarded as the epitome of the development of integrated circuit industry. According to Wan Tiejun, general manager of Jiefa Technologies, in five years, Jiefa Technologies has gone from a small team to an independent company; to use the capital market, the identity of the new subsidiary of the listed company Four Dimensions Map to lay out more areas of vehicle networking chips; and then to practice hard internal skills, ushering in a year of shipment of a new product outbreak period.

In five years, the IC industry has grown from scratch in Hefei, and the next step is to move from strength to strength.

"Before and after 2013, Hefei's household appliances, flat panel display, automobile and other pillar industries encountered the problem of lack of"core". Since then, Hefei has proposed to build an "IC Capital" and to plan a "core-filling" from the perspective of market demand. Qin Yuanwang, director of Hefei Development and Reform Commission, said.

Now, Hefei has been listed by the Ministry of Industry and Information Technology and the National Development and Reform Commission as the national integrated circuit agglomeration development base and the key developing city of the integrated circuit industry. China Electrical Science 38 "Soul Core No.2 A" which completes 100 billion floating-point operations per second, core microelectronics break the monopoly of foreign high-end equipment, double-sided laser direct imaging equipment, easy-core semiconductor pulled into 12-inch chip-level single crystal silicon successfully. Innovative achievements such as film emerge in endlessly.

According to Qin Yuanwang, in addition to continuing to improve policies to support the development of integrated circuit industry, Hefei also strengthens the training and introduction of talents to ensure the healthy and sustainable development of the industry. In the next seven years, over 10 billion yuan of funds will be spent to create a "people-raising" environment. It is studying and formulating standards for the identification of talents in the integrated circuit industry, and continuously taking the training of microelectronics talents as a "double-first-class" university. (Discipline) Important content of building and introducing well-known colleges and universities at home and abroad to cooperate in the construction and development of Vocational education.