Integrated Circuits as a Whole, Good Design, Manufacturing, and Development Highlight Dual Wheel Drive Industry

IC is a strategic, basic, and leading industry. It is an important support for the cultivation of strategic emerging industries and the development of information economy, and its core position in the field of information technology is very prominent. Since the beginning of the 21st century, in order to promote the development of the integrated circuit industry, China has successively issued the document No. 18 of the State Council [2000] and the No. 4 document of the Guofa [2011] and implemented the “National Major Science and Technology Project”, and issued the “National” in 2014. Integrated Circuit Industry Development Promotion Outline. Driven by market forces and policy driven by two-wheel drive, the strength of China's integrated circuit industry has risen rapidly. Integrated circuit design technologies in key areas such as mobile intelligent terminals, network communications, and Internet of Things have reached international advanced level, and 28nm manufacturing processes have achieved mass production. Leading companies continue to profit, packaging technology and global synchronization, key equipment and materials into the international procurement system. Overall situation is good, design and manufacturing stand out Since the "Twelfth Five-Year Plan" period, as the country's support for the integrated circuit industry has been significantly increased, measures such as financing and taxes have been intensively introduced and landed. China's IC industry has entered a phase of accelerated development. The scale grew from 218.55 billion yuan in 2012 to 433.55 billion yuan in 2016 and almost doubled in five years. According to statistics from the Ministry of Industry and Information Technology, in 2016 China's semiconductor industry completed a fixed asset investment of 100.113 billion yuan, of which the integrated circuit industry completed a fixed asset investment of 87.957 billion yuan, an increase of 31% year-on-year. Driven by the market and supported by policies, the strengths of all aspects of China's integrated circuit industry have been overall improved. In particular, wafer manufacturing, which is regarded as the leading integrated circuit industry in the design and integrated circuit industry, has grown even more significantly. The IC design industry has developed very rapidly in recent years. According to the China Semiconductor Industry Association (CSIA) data, the IC design industry achieved a growth rate of 24.1% in 2016, 4 percentage points higher than the national IC industry, 11.8% higher than the global design industry, and the sales volume reached 1644. 300 million yuan, not only for the first time surpassed the sales revenue of 156.43 billion yuan in China's mainland packaging industry, but also accounted for the largest proportion in the IC industry, and exceeded the IC design industry sales in Taiwan. The scale of designing a company’s business has been significantly improved. According to the statistics of the CSIA Design Subcommittee, 161 companies had sales of more than 100 million yuan, an increase of 18 from 2015, an increase of 12.59%, accounting for 11.9% of the total number of industrial enterprises in the same period, including not only Shenzhen Haisi, Ziguang Zengrui, one of the top ten IC design companies in the world, has emerged, and a number of key enterprises such as Huada Semiconductor, Shenzhen ZTE Microelectronics and Beijing Zhixin have emerged. The total number of design enterprises in China increased from 736 in 2015 to 1,362 in 2016. A total of 626 start-up companies were created a year, and the number of companies increased by 85.05%, making the number of IC design employees reach the scale of 130,000 people. . The development of wafer manufacturing industry has also continued to improve. SMIC's advanced manufacturing process shipments increased, Huali Micro's technology progressed, and Huahong Hongli, China Resources Microelectronics and other 8-inch production lines operated at full capacity. In 2016, the domestic wafer manufacturing industry continued to maintain a high growth rate, reaching 25.1%, and the industrial scale was 112.69 billion yuan. The growth rate was the highest among the three industries of design, manufacturing and packaging and testing, and the technology level continued to increase. The domestic packaging and testing industry also maintained a steady growth. In 2016, driven by the substantial increase in both domestic design industry orders and overseas orders, its scale reached 156.43 billion yuan, a year-on-year growth rate of 13%. According to statistics of the CSIA Packaging and Surveying Branch, there are certain IC packaging and testing companies in China that are mainly concentrated in the Yangtze River Delta (50), the Pearl River Delta (11), and the Bohai Bay area of ​​Beijing-Tianjin (13), accounting for 56. 2%, 12.4%, and 14.6%. The regional advantages in the central and western regions, especially in Xi'an, Wuhan, and Chengdu, have also been continuously highlighted. The industry for packaging and testing has continued to develop, accounting for 12.4% of the total in 2016. Continual surge of practical power of key enterprises has been significantly enhanced In the development of China's integrated circuit industry in these years, it not only showed a good attitude of stability and progress, but also emerged a number of key enterprises that have influence in the international arena. In the design field, Shenzhen Hass and Zoomlion entered the sixth and tenth respectively in the top ten global IC design industry; ICinsights announced the 2016 Top 50 global IC design rankings, and China's design companies have reached 11 Family. The threshold for access to the top ten design companies in China rose from 1.79 billion yuan in 2015 to 2.05 billion yuan. The total sales of the top ten IC design companies in China reached 69.31 billion yuan, an increase of 25% over 2015. , which accounted for 42.15% of the total IC design industry sales. Among them, Hass Semiconductor's 2016 sales reached 30.3 billion yuan, becoming the first IC design company with sales of over 30 billion yuan, ranking first among domestic IC design companies. According to statistics from the IC Design Branch, the top 50 companies entering China have a threshold of 420 million yuan, and their total sales amounted to 102.67 billion yuan, accounting for 62.4% of the industry's sales of 164.43 billion yuan. Their expansion shows that the energy level of the enterprise cluster in China's IC design industry has undergone qualitative changes, and will be the basis for the development of the world in 2020. In the field of wafer manufacturing, there are also a number of companies with international influence. SMIC ranked fourth in the global OEM industry in 2016, with sales of US$2.914 billion, a year-on-year increase of 30.3%. In 2016, SMIC's 65nm and less than 65nm process sales accounted for 44.6% of total sales. Currently, 28nm process sales account for relatively low sales, and it is expected that the sales of 28nm process nodes will reach 7% to 9% in 2017. In 2016, SMIC’s sales from Chinese customers increased from 47.74% in 2015 to 49.7%. In 2016, SMIC acquired 49% of the company's capital, LF0undry, an Italian pure-chip foundry, for 49 million euros, enabling the company to take a step toward the automotive chip market. In 2016, SMIC also announced the construction of three production lines, including the construction of a new 12-inch production line in Shanghai at a cost of RMB 67.5 billion, the launch of a 12-inch production line in Shenzhen and the construction of the third phase of Beijing, and the expansion of Tianjin with $1.5 billion. 8-inch production line and plans to build an 8-inch project in Ningbo, Zhejiang. Shanghai Huahong Hongli ranks eighth in the global OEM industry. In 2016, the company successfully completed the task of annual production expansion. The monthly total production capacity reached 155,000 8-inch silicon wafers, and sales revenue reached a record high, reaching US$711.4 million, an increase of 11.0% year-on-year; net profit increased by 14.5. %To $128.8 million, it maintained 24 consecutive quarters of profit. The bank card security chip jointly developed and produced by the company and its customers has received international EMVCo chip safety certification, CCEAL5+ certification and MasterCard CQM certification. The company has become one of the top ten enterprises in China's IC companies for the invention of patents. Shanghai Huali Microelectronics, which belongs to Shanghai Huahong Group, developed the 55nm image sensor technology and is currently the most advanced image sensor technology platform in China. It is also the only domestic manufacturer of high-end image sensor chips using 12-inch 55nm process nodes. Enter a large-scale production foundry. Driven by the growth of the smart phone market, Huali Micro's image processor chip shipments continued to grow steadily thanks to the dual-lens market demand. Huali Micro also provides industry-compatible 6V medium voltage devices and 32V high voltage device technology platforms, which have the advantages of low cost and low power consumption. The 12-inch advanced process production line with a total investment of 38.7 billion Huali was officially started in December 2016. This project is the second upgrade project of the "909 Project." After the completion of the project, a 12-inch chip with a monthly production capacity of 40,000 sheets will be built. Production line, process technology covers 28nm-14nm. In terms of the packaging and testing industry, with Jiangsu Xinchao Technology Group Co., Ltd.'s acquisition and integration of AMD's packaging and testing business with Singapore Xingke Jinpeng and Nantong Huada Microelectronics Group Co., Ltd., the two domestic packaging and testing companies sold for the first time. Cross the 10 billion yuan mark. Tianshui Huatian has also significantly improved its service capabilities and competitiveness in the field of high-end packaging and testing through the acquisition of American FC Engineering Company. These three companies have also entered the list of the top ten companies in the world for packaging and testing at the same time, ranking third, seventh and eighth respectively. Innovative technical highlights are frequent, reaching advanced levels With the support of major national science and technology projects, the overall technological level of China's integrated circuit industry has improved significantly since the 12th Five-Year Plan period. In the design field, 16nm products have been successfully commercialized, and initially reversing the thriving situation in the communications chip field. Chips in the fields of computers, smart cards, multimedia and consumer electronics have been rapidly developed; wafer manufacturing has broken through the 28nm process node and leading companies have continued to make profits; packaging Test companies rank among the top echelons in the world. Shenzhen Hass and Ziguang Zengrui have entered the global mainstream design level of 16/14nm in the research and development of high-end smart phone chips, and the chip performance has reached the international advanced level. Shanghai Zhaoxin adopts 28nm technology. The Zhaoxin ZX-C processor with a frequency of 2.0GHz has passed the national CCC certification and has been promoted and applied in key national systems and projects. In the 18th China International Industry in 2016 The fair was awarded a gold medal. In recent years, Guoke Microelectronics has achieved good results in the field of satellite television and security monitoring, and began to layout WIFI and GPS products, as well as solid-state memory controllers with more promising market prospects. The nine-day timing convergence tool of Huada University has been recognized by more than 20 global 10nm process current chip design companies, and is currently collaborating with the world's most advanced FOUNDRY to develop 7nm timing convergence products. The Cambrian developed the world's first deep learning dedicated processor chip (NPU). Currently, it has expanded its scope of authorization and integration into mobile phones, security, wearable devices and other terminal chips. Hangzhou Zhongtian's CK series embedded microprocessors have cumulatively shipped more than 450 million units in domestic printers, monitors, and financial smart cards. The single product application is close to 200 million, and the market share has steadily increased. All of the domestic CPUs used in the "Shenwei Taihu Light" became the world's first supercomputer with an operating speed of over one billion billion times per second, ranking in the top 500 global supercomputers. In recent years, the layout and construction of domestic IC wafer production lines have reached a climax. The investment in wafer production lines is unprecedented. Advanced technology has achieved breakthroughs. It has not only broken through the 28nm process node, the technology has been mass-produced, and SMIC has also cooperated with Huawei and US Qualcomm. A joint venture with IMEC of Belgium to jointly develop 14nm advanced manufacturing processes. The National IC Industry Investment Fund, Ziguang Group and Wuhan City jointly invested in the construction of the “Yangtze River Storage” and entered the memory industry project, making great progress; Shanghai Huali Microphase 2, Jinjiang Jinhua Storage Project, SMIC Beijing B3, and SMIC The 12-inch projects such as Shanghai and SMIC Shenzhen have also started construction. In the next few years, the domestic production capacity of 12-inch production lines will grow rapidly. The proportion of medium and high-end products in the field of packaging and testing represents the level of development of the packaging and testing industry in a country or an area. According to incomplete statistics, the domestic packaging and testing companies currently occupy a certain percentage of advanced packaging products such as BGA, CSP, WLP/WLCSP, FCBGA/FCCSP, Bumping, MCM, SiP and 2.5D/3D. 32% of sales. Among the integrated circuit products of some major domestic packaging and testing companies, the proportion of advanced packaging has reached 40% to 60%.