Integrated Circuits Should Develop in Dilemma

What is China's most imported? One hundred people will have many answers, but it may not be correct. Is an integrated circuit!
What is the largest number of U.S. exports? Weapons or food? None of them are integrated circuits!

Integrated circuit is an industrial capital, technology and knowledge-intensive industry. Combining with the status quo of China, the status quo of the integrated circuit industry is also a common phenomenon: heavy dependence on imports, lack of R&D investment, overall small scale, lack of core technologies, and global Software value chain and other issues.

Integrated circuits are components with a high added value for electronic products, such as the iPad. Integrated circuits occupy 50% of the cost of the entire machine. According to customs statistics, in 2010, 80% of China's ICs depended on imports, and imports reached US$156.99 billion, a year-on-year growth of 31.0%. The remaining R&D and production of its products are also based on the low-end segment.

China is currently the world's largest electronics manufacturing base. By 2014, China's mobile phone production reached 1.115 billion units, accounting for 50% of the world's total production. China's notebook computer output reached 328 million units, accounting for 80% of the world's total production. By 2015, China's integrated circuit industry will account for about 35% of the world's total, an increase of 3% over 2010. Therefore, it can be seen that the production capacity of terminal products in China has greatly increased, and the share of integrated circuits in the world is growing, but the growth rate is relatively slow, and the proportion lags behind that of end products.

Neutrally speaking, the development of an industry in China and the direction of its policies are closely related. Looking at the recent government’s policy on integrated circuits, we can see that the government’s emphasis on integrated circuits is increasing, and good news continues:

At present, with the issuance and implementation of the "New 18th" document, the government gives two preferential tax exemptions, three exemptions, and half reductions on policies. Yang Xueshan, deputy head of the Ministry of Industry and Information Technology of China, also revealed that during the “12th Five-Year Plan” period, China will proceed from the national strategic level, do top-level design and overall planning, and form a joint force to promote the development of integrated industries. There are also cross-strait cooperation with Taiwan and so on.

Why does China have to build integrated circuits, at a glance? As mentioned in the opening chapter, if China does not have its own strong integrated circuit industry, Chinese manufacturing will never be able to sublimate into China to create, and China will never be able to change the fate of global processing plants. So regardless of that aspect, the power of integrated circuits is an important symbol of the rise of China. As long as the government is aware of its importance, it will certainly spare no effort to support it.

The pace of development of integrated circuit products can not keep up with market demand, and the amount of imports is showing an expanding trend. It cannot be changed in the short term. Therefore, the IC industry needs to increase productivity as soon as possible and then further develop its own core technologies. Take the lead, bigger and stronger first.