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China's leading technology may boost the global semiconductor market into a boom period

Foreign media reported on October 14 that the global semiconductor market, which has entered a stagnant period this year, is expected to resume its growth trend from next year. According to a recent forecast released by IHS Markit, a market research organization, South Korea's Central Daily reported on October 11, "the global semiconductor market will reach 448 billion US dollars (1 US dollar is about 7.1 yuan) next year."

According to a report on the website of South Korea's Central Daily on October 11, IHS Markit, a market research institution, recently released a forecast that "the global semiconductor market will reach 448 billion US dollars (1 US dollar is about 7.1 yuan), an increase of 5.9% over this year's (42.28 billion US dollars)", "countries in the world have successively opened commercial 5g communication, which will drive the semiconductor market into a super boom cycle".

The report noted that the semiconductor market reached a record high of $485.6 billion in 2018, but in 2019, with the sharp decrease in the demand for memory chips, the whole market fell into a period of stagnation.

As for the possible reasons for the resumption of growth next year, the Korean media analysis said that after the official entry into the 5G era, the smart phone market is expected to expand significantly, and the rapid development of the industries such as autopilot, Internet of things (IoT) and data center will greatly drive the growth of the semiconductor market. There are many forecasts that the global information technology enterprises' demand for memory chips may not increase significantly.

Drive huge demand growth

"In the history of the entire semiconductor industry, every market downturn has ended with the arrival of technological innovation, which has greatly boosted demand growth," said len Jelinek, senior director of semiconductor manufacturing at IHS Markit, according to the US electronics 360 website.

"In the past, these innovations have had a significant impact, such as the emergence of the Internet or the launch of the iPhone," he said. Today, another historic innovation will take a place in these developments: 5g. However, the impact of 5g will be far beyond the scope of the technology industry, affecting all aspects of society, promoting new economic activities, thus stimulating the demand for chips. "

In addition to telecommunications and device manufacturers, 5g will provide new opportunities for those who create new content, and new technologies will bring changes such as healthcare, robotics, virtual reality, games and other types of entertainment, the report said. All of these developments require billions of dollars worth of semiconductor industry to achieve.

This has not taken into account the smartphone business and the new phones developed with 5g. IHS Markit said semiconductor sales in the global smartphone market will reach $87.7 billion this year alone. Following the decline in smartphone sales in 2018 and 2019, new mobile technologies will also drive global smartphone annual sales growth in 2020.

5g business in China

Since this year, major countries in the world have accelerated 5g commercial application, taking industrial application as an important scene and main position of 5g integration and innovation, and seizing the significant historical opportunity of digital transformation of the real economy. At present, 5g business in China has been launched in an all-round way and is advancing in depth.

According to reports, in June this year, the Ministry of industry and information technology of China officially issued 5g commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and television, attracting heated discussions from foreign media. "Japan economic news" comments that some agencies predict that 5g will bring huge economic benefits to China. In addition, 5g commercialization will greatly promote the development of smart phone industry.

According to an article published on the website of the German business daily, China has issued 5g commercial license ahead of the previous expectation, and has advanced 5g construction through spectrum allocation, which is ahead of many European countries. So far, about a third of European countries have not set a timetable for 5g spectrum auctions.

Tecmundo website of Brazil pointed out that China's issuance of 5g license will not only promote the construction of domestic communication infrastructure and business development, but also benefit the development of relevant foreign enterprises.

Fitch consulting recently published an analysis report that China's 5g development benefits from scale effect, sound central coordination policy and professional technology. China's 5g deployment is advancing steadily. The licensed Chinese enterprises have a complete supply chain, and the huge number of mobile device users will also promote the development of 5g.

Techcrunch, a US technology website, commented that businesses in the 5g sector, including network equipment manufacturers, mobile phone manufacturers, chip manufacturers and application developers, have increased their horsepower and hope to take advantage of China's 5g development opportunities.

In September this year, the Global Association of Mobile Communications Systems launched the establishment of 5G Innovation and Investment Platform in China. The Association launched the establishment of "GSMA 5G Innovation and Investment Platform" in conjunction with China Migration Capital, Huawei, ZTE, Dongzheng Capital, CSDN, Shenchuanggu and Deloitte China, aiming at gathering many leading investment institutions and academic opinion leaders in the mobile communications industry, and at the key window of the current 5G development. During this period, we will focus on AI, Internet of things, edge computing, cloud computing, big data, network technology, security, terminals and applications to tap high-quality innovative enterprises, connect venture capital, and promote the commercialization of 5g applications.

According to the previous prediction of GSMA think tank, by 2025, about one third of the world's 5g users will be in the Chinese market.