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The strength and weakness of IC industry in mainland China

Under the trend of normalization and long-term trade war between the United States and China, the development opportunities and difficulties coexist in China's IC design industry. It is advantageous that the trend of self-control is remarkable. The emerging application fields of science and technology have development advantages. There are more official industrial policies to help local IC designers break through in innovation. There is also a strong impetus for all-round capital investment. It will also bring the upstream driving force for the downstream development of semiconductor supply chain.

However, China's integrated circuit design industry also has its own development dilemma, such as the serious shortage of practitioners and R&D personnel, which makes talents face a tight situation; in addition, the self-sufficiency rate is still low, especially for core chips such as CPU, GPU, MCU, FPGA, DSP, memory chips, IGBT, etc. The proportion of domestic manufacturers available is less than 10%, and China's integrated circuit design industry is only the leading company Haihai. Squeezing into the top 10 global rankings, but the competitiveness of the remaining small and medium-sized manufacturers is obviously weak.

As far as the development opportunities of China's IC design industry are concerned, policy support, collaborative innovation and key breakthroughs will be the consensus of the government and large enterprises at this stage. Among them, the second phase of the IC large fund is also well-equipped. The news shows that compared with the first phase of the large fund, which mainly focuses on upstream design, manufacturing and sealing, the second phase of the large fund will focus on downstream applications, hoping that the downstream industry chain will bring along. The development of power semiconductor industry, such as artificial intelligence, 5G, Internet of Things, big data, energy management and other terminal application industries, has considerable impetus for the development of integrated circuit design industry in China. Moreover, China's large landing applications in emerging science and technology fields will support the development and innovation of integrated circuit design industry.

In addition, the local government fund, driven by the policy, has reached hundreds of billions of RMB by May 2019. Moreover, there are abundant listing pipelines of science and technology innovation board. It is obvious that the investment of funds will lead the industry to a positive cycle.

As far as the development of integrated circuit design industry in China is concerned, there are less than 300,000 IC practitioners, but according to the gross output value plan, 700,000 IC practitioners are needed. Obviously, the number of talents is seriously insufficient, which will hinder the upgrading of science and technology. Semiconductor is a typical technology-driven industry. In the case of high technology control and patent barriers abroad, if it is technically difficult. Guan can not break through effectively, which will prolong the time for China's integrated circuit design industry to catch up with technology.

In addition, there is a huge gap between the competitiveness of large and medium-sized integrated circuit industries in China, and there is a structural imbalance. In 2018, Hess entered the ranking of the world's fifth largest chip design field. Last month, Huawei officially released its new Kirin 990 processor in Germany, which is the world's first 5G SoC based on 7-nanometer and EUV process technology, in line with the products of international manufacturers. Other products including CMOS products of Howe Technologies, fingerprint chips of Huiding Technologies and memory interface chips of Lanqi Technologies are still competitive, but other local small and medium-sized businesses need to catch up.

In the future, China's IC design industry is expected to focus on CPU, GPU, FPGA, memory chip, analog IC, EDA, ASIC and so on. Most of the above areas are monopolized by the international industry. Although Chinese manufacturers have some involvement, they still lag behind in the performance of the above-mentioned key chips due to the lack of industrial chain applications or the lack of chip underlying architecture. Even the construction of high-order chips is almost blank, which is the bottleneck of the IC design industry in China to be broken through.