Orders in mainland smartphone chip "explosive rally", mediatek vice chairman xie qingjiang since the second quarter of this year, are all busy to fabs, sealing test factory capacity, mediatek method said at the meeting yesterday, xie qingjiang admitted that more tight capacity problem will continue until the end of the year. But it is questionable whether, if out of stock, mediatek why not in price, let's gross margin has big bounce?

Xie qingjiang the truth: "fierce competition", gross margin is the key to new lows.

The rise of the other side, spreadtrum, marking China IC design industry forces greatly strengthened, Taiwan IC design companies if they do not avoid lock area of IC design industry, have to be like mediatek face high revenue innovation, gross margin out low asymmetric competition.

But the problem is coming, to avoid China IC design industry, the rest of the market is able to support Taiwan IC design industry? In the past, mediatek, sunplus, via, the morning star, chow, realtek Taiwan IC design industry, with 40 ~ 50% gross margin, success requires from 50 ~ 60% gross margin of IC design companies in the us and Europe, market pie. Now, turn to the sea, spreadtrum, zte, grid division, such as: China IC design industry, with the same way, with the Taiwan factory to rob pie.

Industry analysis, the mainland IC design companies as development tool, and for cost, is the government's subsidies and power, as long as 30 ~ 40%, even lower gross profit margins, can replace Taiwan, Japanese, Korean, and even Europe and the United States department of IC design industry in the market. This trend, national IC design industry are puzzling over the solution.

Want to avert the threat of IC design low gross profit margin of red tide, often choose and attached IC design of different market, but this is usually a small market. If Taiwan IC design companies only care about this small indeed fortunate market, Taiwan's IC design industry output value will shrink.

If so, to qualcomm, Intel, grace wisdom pu synchronous to break this kind of big international IC design enterprises, which is to know the coexistence and co-prosperity with the mainland, jointly seek cooperation alliance mode, sharing global semiconductor business opportunities have a chance, so the government should be to the open policy, to help Taiwan IC design industry to return to the high gross margin, high-growth, high EPS tenors era.