"China is expected to achieve the world's leading semiconductor companies in the future 10 years, the premise is that they have to fill some technical gap and other challenges, in particular, should be encouraged to willing to longer-term investment and across business cycles of patient financial capital." Visiting professor at tsinghua university, McKinsey, head of Asia Pacific semiconductor consulting business, global partner Chris Thomas (Christopher Thomas) in an interview with reporters said.

Semiconductor into the first large imports

Chris Thomas emphasizes, promote the rapid growth of China's semiconductor industry has several potential force. Such as the demand of the blowout. The current Chinese semiconductor consumption continues to "beat" the market, consumption growth of 9% in 2015, to $150 billion, equivalent to the global accounted for 43%. Semiconductor is rapidly increasing imports, now has more than oil, become China's largest imports.

According to public information, the electronic products made in China accounts for about 41% of the world, but its self-sufficiency rate of semiconductor only about 7%.

Chris Thomas said that the rapid growth of customers on the Chinese market, especially for mobile devices, drive the rapid growth of the industry, including mobile phones and tablet devices in China between 2010 and 2014, nearly 80% of the market growth. In addition, global equipment manufacturers to product development, manufacturing and related semiconductor consumption moved to China, also boosted growth.

Leaders make total economic profits

However, as slowing economic growth, now is the market for mobile devices to cool obviously. Smartphones consumption flat year-on-year in 2015, but since 2010, smartphone consumption increased five times. Industry estimates, the next four years, the Chinese smartphone manufacturers shipments forecast growth, would slow to only 2-5% a year.

Chris Thomas said, given China's slowing economic growth and the dominance of Chinese equipment manufacturers in the local market, Chinese enterprises "going out" semiconductor is imperative. Semiconductor globalization is the important theme of the government in 2014 to encourage policy, the government will spend billions of dollars to fund China's semiconductor industry.

But due to the scale and experience of efficiency, global leadership is very important for Chinese enterprises. McKinsey's research shows that all kinds of semiconductor industry segmentation, ranked first or second earned 100% of the total economic profit of enterprise, and not one among the leading enterprises are at a loss.

Now there are billions of dollars are spent to the semiconductor industry in China, to support local suppliers and support overseas acquisitions. According to statistics, in spite of 2012 to early 2016 announced a series of Chinese enterprises overseas mergers and acquisitions, but so far, China's semiconductor trading accounts for only 5-10% of the world have reached a transaction.

The semiconductor industry is no shortcut to success

Chris Thomas said, Chinese enterprises to achieve global recognition of fundamental change requires the following four aspects: the first is to attract research, product development, operations and business management, the most outstanding global talent; second, take the technology leader in thinking mode, investment and focus on the proprietary technology breakthroughs can cause persistent differentiation; third, skilled in architecture and implementation of cooperation with the global technology leader relations; fourth, encouraging willing to longer-term investment and across business cycles of patient type of financial capital."

Semiconductor industry is a technology to win, innovation and the core technology to leadership. Therefore, to reduce the Chinese semiconductor companies in the technology gap is very important. Said Chris Thomas, semiconductor as a clean, high-end manufacturing, for China's industrial structure transformation is a very good industry, also can promote the innovation of Chinese industry, such as the innovation of the smart phones and tablets.

But how long does it take to build a successful semiconductor companies? It is reported that samsung has 3500 engineers specializing in the design and manufacturing process of memory, these people work together as a team for 20 years.

Therefore, Chris Thomas said, "I have been an emphasis, is to have long-term patience capital."

In policy terms, Chris Thomas suggestion, capital and investment needs to have certain mechanism and policy to ensure that the funds can flow to have the best technology companies. "I think the most important thing is to ensure that can really introduce global semiconductor companies growth of the best technology to help us, it's need to make sure that our industry, the environment can let all people feel is a fair competition environment. If split the government's investment, can cause some technology not, doesn't have the talent of semiconductor companies should be in the market competition evolution, but due to government subsidies or funds to survive, to have a good technology company, is a kind of unfair competition may lead to bad money after bad money."