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2018

06/21

Transfer of semiconductor industry chain to China, autonomous and controllable trend

Transfer from: quick information

According to statistics of the World Semiconductor Trade Statistics Group (WSTS), the global semiconductor market sales exceeded US$400 billion for the first time, reaching US$412.221 billion, which was a year-on-year increase of 21.6%, and the growth rate hit a new seven-year high (31.8% in 2010). The growth rate for 2017Q4 was 22.5%, slightly higher than the average annual growth rate, indicating that the semiconductor industry's boom degree will continue.

Semiconductor refers to the material whose conductivity between the conductor and insulator at room temperature is widely used in various electronic products. As the cornerstone of scientific and technological progress and economic development in the world today, the semiconductor industry has become a manifestation of the country’s overall strength.

According to the classification of the World Semiconductor Trade Statistics Organization (WSTS), the semiconductor industry can be subdivided into four major areas: integrated circuits, discrete devices, optoelectronic devices, and sensors.

The semiconductor industry chain is mainly divided into the core industrial chain (IC design, manufacturing, packaging and testing) and semiconductor support industry chain (materials and equipment, etc.).

In the past, the semiconductor and electronics industries were mainly terminal changes. In recent years, the upstream semiconductor support industry and electronic components have begun to change. For example, phase change memory has brought changes from semiconductor materials to integrated circuits.

China has increased capital investment in the semiconductor industry, and the global structure of integrated circuits is also changing. The transfer of the semiconductor industry chain to China has become a major trend.

The semiconductor industry is a highly technical and capital-intensive industry. Affected by the production costs and the cyclical fluctuations in the semiconductor's own development, the world's semiconductor industry is shifting towards a developing country industrial chain with market advantages and cost advantages.

As the main body of rapid economic growth, China has become a major destination for the  transfer of the semicon-ductor industry, relying on its huge market demand and its cost advantage.

According to statistics from the China Semiconductor Industry Association, sales of China's integrated circuit industry reached 541.13 billion yuan in 2017, a year-on-year increase of 24.8%.

Among them, the manufacturing segment sales reached 144.81 billion yuan, an increase of 28.5% year-on-year, and the design and packaging and testing industries continued to maintain rapid growth, with growth rates of 26.1% and 20.8%, and sales of 207.35 billion yuan and 188.97 billion yuan respectively.

The growth rate of the Chinese semiconductor industry is significantly higher than that of the global market and has become the largest semiconductor market in the world.