Mainland China will become the world's second largest semiconductor equipment market

Information comes from:Internet Posted:2020-07-16

  The International Semiconductor Industry Association (SEMI) released a survey report that estimated that the global market size will reach 49.4 billion US dollars this year, an increase of 19.7% year-on-year, and set a new record. At the same time, it estimates that mainland China will surpass China Taiwan to become the world’s second largest market next year. It will provide a foundation for the development of China.
  In the past few years, Taiwan has been the world's largest semiconductor equipment market. It has maintained this position with the help of companies such as TSMC, the world's largest semiconductor foundry company, MediaTek, the world's second largest mobile phone chip company, and ASE, a global leader in IC packaging and testing. In recent years, it has faced many challenges brought about by the rapid development of South Korea and mainland China.
  SEMI said that the fastest growth this year will be South Korea, which owns Samsung and SK Hynix, the world’s top two DRA M chip companies. These two companies are also the world’s largest and fourth largest NAND flash companies. In DRAM and NAND flash Driven by the continued price increase, the country's semiconductor sales will surge 68.7% year-on-year to 12.97 billion US dollars, which will be the first time in five years that it has surpassed Taiwan and won the number one position in the global semiconductor equipment market.
  China is paying more and more attention to technological innovation. According to the “2016 National Statistical Bulletin of Science and Technology Expenditure” jointly released by the National Bureau of Statistics, the Ministry of Science and Technology and the Ministry of Finance, China’s total R&D expenditure in 2016 reached 1567.67 billion yuan, second only to the United States Ranked second in the world; in terms of investment intensity (ratio of R&D expenditure to GDP), the ratio reached 2.11% in 2016, which surpassed the level of 2.08% in 15 EU countries, shortening the level with developed countries. It will help China enter the ranks of innovative countries in 2020.
  It is under the national innovation strategy plan that mainland China established the national integrated circuit industry fund in 2014 to support the development of the domestic semiconductor industry. Since then, the semiconductor industry in mainland China has begun to show a rapid growth momentum in IC design, IC manufacturing, Several semiconductor industries such as IC packaging and testing are showing rapid growth.
  According to relevant data, the output value of Taiwan’s semiconductor industry in the first half of this year slightly exceeded that of mainland China. However, mainland China has surpassed Taiwan in terms of IC design and IC packaging and testing. Only IC manufacturing still lags behind Taiwan.
  In terms of IC design, according to the "Top 10 IC Design Enterprises in 2016" released by CSIA, Huawei HiSilicon, Ziguang Zhanrui, Huiding Technology, etc. are included. Spreadtrum ranks sixth and ninth among the top ten IC design companies in the world, respectively. Huawei HiSilicon is gradually catching up with the industry leader Qualcomm in technology research and development. Spreadtrum is directly following the world's second largest mobile phone chip company MediaTek in terms of market share of mobile phone chips. Ding Technology is the world's second largest touch chip enterprise and star enterprise of fingerprint recognition technology.
  In terms of memory chips, mainland China is catching up. The three major memory chip companies, Yangtze Storage, Hefei Changxin, and Fujian Jinhua are currently working hard to build their factories and debugging equipment. Changjiang Storage is expected to start production of NAND flash memory chips next year. Hefei Chang Xin and Fujian Jinhua are expected to start production of DRAM memory chips by the second half of next year, which will make mainland China another important force outside the three major memory chip producers in Korea, Japan and the United States.
  In terms of IC packaging and testing, a large number of world-renowned IC packaging and testing companies such as Changdian Technology, Huatian Technology, and Tongfu Microelectronics have emerged. Among them, Changdian Technology has ranked third in the global IC packaging and testing industry. Huatian Technology, Tongfu Microelectronics ranked seventh and eighth, respectively. Among them, the acquisition of Xingke Jinpeng, the fourth largest IC packaging and testing company in the world, launched by Changdian Technology in 2015 surprised the world with the strength of IC packaging and testing companies in mainland China, which will help Changdian Technology obtain advanced IC packaging technology. And enhance the technical research and development strength, rank among the world's first-class IC packaging and testing companies, and expand overseas markets.
  In terms of IC manufacturing, SMIC and Shanghai Huahong are among the top ten IC manufacturing companies in the world, ranking fifth and ninth. Among them, SMIC is currently developing a 14nm FinFET process, which is expected to be mass-produced next year. At the same time, it is developing a more advanced 7nm process. EUV equipment, which is critical for 7nm and more advanced processes, is expected to obtain lithography machines in mainland China by 2019 Supply of leading ASML (ASML).
  The semiconductor industry is the upstream of the manufacturing industry. Chips are known as "industrial food". It can be seen that the importance of the semiconductor industry to the manufacturing industry. Mainland China will become the world's second largest semiconductor equipment market next year. It will strongly promote the development of the Chinese semiconductor industry and be made for China. China's five major strategic emerging industries such as information technology, high-end manufacturing, bio-economy, green and low carbon, and digital creativity also need to be supported by the development of the semiconductor industry.

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