Recently, the 11th China International Semiconductor Exhibition and Forum was held in Shanghai, the executive vice president of China Semiconductor Industry Association, said that Xu Xiaotian, supporting the integrated circuit industry or large, new policy efforts far from the development of more than 18 countries Participants said that the global integrated circuit industry has entered a phase change material adjustment.

Event 2: The current state has confirmed the introduction of policies, supported by the integrated circuit chip industry, the Ministry of Industry and Information Technology's plan has now entered a tough stage, the plan is expected to be completed in the fourth quarter, and sent to the high-level approval, the official release time may be late . At the operational level, it is mainly to support enterprises to increase funds from the national level. In the form of financial support, it is possible to take the form of an investment fund industry. The new round of support policies has also brought new development opportunities to the upcoming Chinese IC industry.

Event 3: On November 11th, Ziguang Group will acquire all the issued shares of cash RDA, with a total purchase amount of approximately US$9.1 million. Prior to the end of July, Zizhong issued a cash offer to Spreadtrum Communications, which ultimately determined each US deposit. The purchase price of the shares is $31, which is about 18 billion purchase price.

1. Strong policy support has realized the leap-forward development of the semiconductor industry

In fact, China’s support for the development of the integrated circuit industry has never stopped. In June 2000, the State Council promulgated “a number of policies to encourage the development of the software industry and the integrated circuit industry”, and in February 2011 the State Council issued “about further "Several policies to encourage the development of the software industry and the integrated circuit industry." In the decade of rapid development of China's IC industry, SMIC has become a giant IC design and manufacturing company, but it is super large. There is still a big gap between IC design and the processing power of international companies.

We believe that the main reason is that China's integrated circuit technology still lags behind overseas giants in two aspects. First, a typical knowledge-intensive industry, lack of mature design talents and design experience is one of the obstacles to the development of the industry. Second, manufacturing and technology-intensive industries are capital-intensive industries, with hundreds of billions of dollars in capital expenditures such as Intel, Samsung, and TSMC (capital expenditure is a measure of the size of the enterprise and the technical level of major indicators), compared to China’s semiconductors. Manufacturing enterprise project investment expenditure may not have enough RMB 1 billion; therefore, technical and financial support for much-needed industrial development and breakthroughs. From the previous approach to the view of the integrated circuit industry, mainly tax incentives, land allocation, R&D incentives, based on intellectual property protection, are complementary measures, while the second IC industry support policy, on the operational level, it It may be that the state level will increase capital investment and support enterprise-based, which will be a major change in industrial policy support. Therefore, the industry generally believes that its strength is stronger than before, support, "No. 18", but also help The leap-forward development of the national industry.

2. Dependence on imported semiconductor chips is the core issue of China's integrated circuit industry.

According to the statistics of authoritative organizations, in 2012, more than 190 billion US dollars of semiconductor chips in China during the same period, China's crude oil imports amounted to 220.6 billion; in 2012, we rely on foreign oil for 58%, while imports Nearly 80% of semiconductor chips rely on imported high-end chips with a rate of more than 90%; these shocking figures fully demonstrate that in China, the long-term development of the information industry's core components of electronic components - the lifeblood of semiconductor chips is still in the hands of overseas giants.

In our analysis, due to the historical factors such as the international division of labor in China's semiconductor industry, the long-term "smile" of domestic semiconductor manufacturers started late at the bottom of the curve. They tend to reduce technical barriers, labor intensity, "package" into the industrial chain, and gradually expand to the low-end chip "manufacturing" industry. In the international competition of high-end chips, the technical blockade of overseas giants of Chinese mainland manufacturers is an important means to maintain their long-term competitive advantage, and is also the core issue that restricts the development of the integrated circuit industry.

3. It is an inevitable requirement for the development of high-tech industries that replace imports.

First, the range of application semiconductor chips can be extended to all areas of production and computer life, electronics, power, communications, transportation, life sciences, information security, machinery manufacturing, electronic chips will always be the command and control center automation products, as a man The brain and heart, therefore, semiconductor chips are the development of the basic high-tech industrial components, but also the core components. Next, the semiconductor chip and the bottom support system control program and various computer software. Lack of supporting hardware systems (mainly chips), then gorgeous application software, and can only become a castle in the air.

Third, from the perspective of manufacturing costs, imported chips have become the main bottleneck for the decline in the price of electronic terminals. In the thousand yuan smart machine, for example, or from Qualcomm, MediaTek (MTK) processor chips, baseband chips account for about 20% of the overall cost. According to the cost of the disappearance of human resources in the background, the core components of the cost of the chip can rapidly decline, which will become a key factor affecting the sustainable development of China's manufacturing industry. Based on the above discussion, we believe that semiconductor chips play a very important role in the process of China's economic and social development to achieve the import of high-end chips, the inevitable demand for the development of China's high-tech field.

4. Import substitution is the information foundation for maintaining national security.

First, as a memory chip, the information storage medium has a capacity, and the read and write speeds are gradually increased. However, in view of the security concerns of the national security information, the safety of people and property in the life course, the high security classification of information chips should be chosen as the storage medium. For this reason, in the early days of China's second-generation ID card replacement, it is clear that all purchases of domestic memory chips are required. For financial IC cards in this field, since 2014, domestic chips will also be expected to be significantly heavy and large-scale replacement. Demand, using imported chips. The above example can look at information security from a perspective, and the strong domestic demand for memory chips can be seen. Second, the "Policy of Reform" eighth plenary meeting, explicitly mentions information security, public security issues, and China's financial sector, telecommunications and other IT support systems have been the monopoly of overseas giants to the topic of "IOE" Again mentioned. In fact, only the "IOE" from the application point of view to solve the problem of high dependence on foreign countries to achieve national security information, the goal of comprehensive protection of processors and memory chips to achieve localization is the only effective The creation of an ecosystem from hardware to software is an effective way to lock the national information security door.

Third, in the field of military weapons and equipment, the core can achieve the localization of semiconductor components, which may become an important factor in the extent of relevant cutting-edge weapons, which in turn affects our national security and military operations.

5, to achieve rapid development of the industry, the needs of all aspects of the synergy of the industrial chain