Domestic Demand Expansion Policy Promotes IC Manufacturing in China

As early as 1988, the mainland established the first IC manufacturer Shanghai Advanced Semiconductor (ASMC), a joint venture between NXP and Shanghai Chemical Industrial Park Investment Industrial, followed by SGNEC (SGNEC) and Wuxi China Resources Shanghua. (CSMC), Hua Hong NEC (HHNEC) and other foundries have joined in one after another. However, before the year 2000, the mainland semiconductor industry was just unfolding. Not only the industrial chain has yet been formed, but the R&D of process technology is also in its infancy.

During the period of the 15th Five-Year Plan and the 11th Five-Year Plan period from 2001 to 2010, the semiconductor industry was listed as one of the key industries supported by the state. The mainland government has therefore introduced a number of preferential policies and measures, plus the local government has also provided construction land. Various preferential measures, including major semiconductor companies including SMIC, HEJIAN, Taiwan Semiconductor Manufacturing (TSMC) Minjiang, Grace Semiconductor (GRACE), etc., were established during the fifteenth plan period. The mainland IC manufacturing industry officially entered takeoff and growth.

Although the mainland packaging and testing industry is mainly based on the Integrated Device Manufacturer (IDM) packaging and testing department, it still accounts for more than 70% of the output value of the mainland packaging and testing industry. However, during the 15th Five-Year Plan period, the number of professional packaging and metering manufacturers in the Mainland has grown rapidly, among which the more professional packaging and testing plants are more representative of Jiangsu Changjiang Electronics and Nantong Fujitsu. The packaging technology level and packaging capacity have also surpassed that of Taiwan's second-line packaging and testing. Manufacturers, competitive strength can not be ignored.

During the 15th Five-Year Plan and 11th Five-Year Plan, the semiconductor industry! The introduction of a variety of tax incentives and subsidy measures has attracted industry players to compete and expand their production capacity. The mainland's domestic market has continued to expand and has become an important driving force for the growth of China's semiconductor industry output value. Coupled with the opening of the capital market, not only increased corporate financing channels, companies can use the financial market to obtain considerable capital gains, resulting in the rapid development of the mainland IC design industry, making the mainland semiconductor industry chain more complete.

Encouraged by various favorable factors, the output value of the mainland semiconductor industry grew from RMB 17.1 billion in 2001 to RMB 118.4 billion in 2010. The compound annual growth rate from 2001 to 2010 was 24%.

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