Research Report on China Integrated Circuit Industry[2010-2019]

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Research Report on China Integrated Circuit
Industry2010-2019
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Summary

• Ever since its entry into WTO, China has become
  one of the regions where integrated circuit
  industry grows fast.
• In 2014, integrated circuit industry in China
  reported sales revenue of CNY 267.2 billion with
  a year-on-year growth of 11.2 and a profit of
  CNY 21.2 billion with a year-on-year growth of
  52.
• Integrated circuit industry in China is highly
  concentrated in Yangtze River Delta including
  Shanghai, Jiangsu and Zhejiang as well as Pearl
  River Delta including Guangzhou and Shenzhen.

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In 2014, integrated circuit reported a growth of
12.4 in output and a growth of only 8.7 in
output value. Besides, its export volume rose by
7.6 yet export value dropped 30.6. Such a
phenomenon indicates that Chinese integrated
circuit is low-end products whose prices keep
going down. Although China integrated circuit
industry has made many progresses, the gap
between it and advanced integrated enterprises
must be envisaged. Leading international
companies are 1-2 generations beyond Chinas chip
manufacturing in advanced technology. And their
packaging testing technology is more advanced
too. Besides, IC design in China is just a
start-up with single product. High-end integrated
circuit relies on import. To secure their
technological advantages, international giants
has increased RD investment.
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For example, the big five semiconductor
companies Intel, Qualcomm, TSMC, Quatek and Hynix
have reported a RD cost of 15.9 that is close
to a five-year high. While local enterprises like
Semiconductor Manufacturing International
Corporation has reported an input less than 10
despite the fast growth in RD investment. The
experience of integrated circuit development has
shown that inefficient investment in RD might
further widen the gap in severe competition. In
2014, USD 217.6 billion of integrated circuit was
imported with a year-on-year decrease of 5.9
while only USD 60.9 billion was exported,
decreasing 30.6. And integrated circuit remained
the largest import.
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Trade deficit continues to grow to USD 156.7
billion with a year-on-year increase of 9, which
shows the overall strength of integrated circuit
is still weak. Governments at all levels have
issued plenty of policies supporting the
development of integrated circuit. In Feb.2014,
the State Council of the Peoples Republic of
China issued the Outline of Promoting the
Development of Integrated Circuit Industry which
will serve as a guideline on the development of
integrated circuit industry. Later investment
funds for integrated circuit industry were issued
and increased from CNY 100 billion to CNY 120
billion, improving market participants
expectation and the attention paid to the
industry. Meanwhile, local governments have
issued supporting policies for integrated
circuit.
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Mobile communications has entered 4G era with
over 80 million out of 1.28 billion users are 4G
users. As 4G spreads faster than expected, the
competition in domestic low-end market will
become very fierce in the coming year. Against
the short supply of phone chips, local integrated
circuit manufacturers will take a share of the
market too. The Internet of things has developed
fast in China and the demand for smart city,
smart transport and industrial monitoring have
kept increasing. According to Market research,
the market size of the internet of things has
already exceeded CNY 600 billion and lead to a
rising demand for sensors. According to the
Peoples Bank of China, bank card with magnetic
stripe will gradually be replaced by financial IC
card. Currently, all commercial banks in China
have begun to replace magnetic stripe card with
financial IC card.
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As China boasts of the largest consumer group of
electronic terminal, the largest manufacturing
base of electronic products as well as the
largest consumer market of integrated circuit,
there will be many development opportunities for
integrated circuit industry in future. Readers
can get at least the following information
through this report -policy and economic
environment facing integrated circuit industry in
China -supply and demand of integrated circuit
industry in China -Chinese governments policy
supporting integrated circuit industry -competitio
n in integrated circuit industry in China
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-import and export of integrated circuit in
China -key enterprises of integrated circuit
industry in China -expectation to integrated
circuit industry in China The author suggests
the following groups of people purchase this
report -enterprises engaged in integrated
circuit design, manufacturing and
packagingtesting -investors/research
institutions interested in integrated circuit
industry
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Table of Contents
1 Overview of Integrated Circuit Industry in
China 2 Development Environment of Integrated
Circuit Industry in China 3 Operation Analysis of
Integrated Circuit Industry in China, 2010-2014 4
Competition in Integrated Circuit Industry in
China, 2011-2015 5 Industrial Chain of
Integrated Circuit Industry in China, 2011-2015 6
Analysis of Sub-industries of Integrated Circuit
Industry in China, 2010-2014 7 Import and Export
Analysis of Integrated Circuit Industry in China,
2011-2014
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of Contents, please visit Research Report on
China Integrated Circuit Industry2010-2019 Cont
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