High has always been a leader in the semiconductor industry, the prospects of the development of the semiconductor industry in China, qualcomm China chairman Mr. Meng is very positive. At the end of last year, in the documentary "China laboratory" during filming, surging news reporter interview he think that China will in 2030, is the use of 15 years, in the semiconductor industry, including design, production, packaging, into the world's first echelon.

He said that in recent years, as the country's attention and capital to enter, China's semiconductor industry is in transition, from wireless Internet to interconnection of all things the Internet of things have created many opportunities, whether called corner overtaking or other, in short, there are more opportunities, time is very good.

The semiconductor industry in China will have a better development opportunity

Surging news: development of semiconductor industry need what conditions?

Mr. Meng: two aspects, the semiconductor industry to technology and capital requirement is higher, is usually we say technology intensive, capital intensive.

Looked from the development of the semiconductor industry, after the world war ii, the United States has laid a strong economic position, there is plenty of talent, talent attraction and capital attraction are doing very well and gave birth to a lot of startups in silicon valley, the very many technical personnel all in, although in the past 30 years of development process, there are a lot of countries have struggled to find able to compete with silicon valley area. This is why the United States led the world in the past two hundred and thirty years have been the original cause.

The process of China's semiconductor industry has experienced from scratch, we now have a lot of semiconductor company, can't enter the world first echelon, but in the second echelon company very much, if there is a technology, policy, capital support, over time, the semiconductor industry in China will have a better development opportunity.

Surging news: concrete, the semiconductor companies in what niche do better?

Mr. Meng: each niche is different. Such as design, qualcomm is in the field of semiconductor design, there are a lot of very successful companies in China, but now also need to be further from the scale and r&d efforts, so they are still in the second tier.

Manufacturing, China's largest semiconductor wafer manufacturer is smic (smic IC manufacturing co., LTD.), they are now the world's fourth wafer manufacturers, smic is still in the second tier, but progress quickly. Qualcomm and smic in recent years, there are a lot of cooperation, we are the world's largest wafer production design company, we have the scale, technical ability, we to smic's request, to produce 28 nm wafers for us, this can help smic relatively quickly advanced process to the premise. Their technology than before, TSMC IC manufacturing co., LTD. (Taiwan) two and a half to two generation, now is the poor generation to generation and a half. This is a better model.

Packaging, assembly house before the relatively small size, and now the manufacture of is the trend of front-end and back-end packaging can well combined, has the scale effect, can develop faster, so the smic has investment in jiangsu province jiangyin long telegram (long telegram, jiangsu science and technology co., LTD.), which is specialized in packaging factory. We will with the national integrated circuit fund joint investment, joint venture companies to encapsulate joint venture enterprise investment of $280 million, semiconductor backend technology and capital investment, and the front end.

"National integrated circuit fund" the project is very good

Surging news: national integrated circuit can efficiently help the development of China's semiconductor industry?

Meng park: national integrated circuit development programs to encourage Chinese companies from the policy guidance in integrated circuit development into a lot of, also formed the national team. On the industrial chain as you can see, smic, or thunis, they could carry out capital operation, be able to purchase foreign technology or company, which has played the role of a lot of the funds. Combined with local government funds to encourage private, state-owned enterprises, especially manufacturing factories, over time, capital intensive and technology intensive these two links, at least to solve capital intensive requirements.

Technology-intensive requirements may be the whole society need to work harder, the cultivation of the talent was not built one day can suddenly, need time. How to draw the national excellent talents to the semiconductor industry, draw the world excellent talents to China, whether in design, production process and the need to work hard.

Another very important, is the protection of intellectual property rights. All technology-intensive industry chain, must be a high investment, high risk. In the way of growth without successful companies more than the success of the company, the successful enterprise's intellectual property rights can be protected, that it can continue to have money and confidence to further research and development and innovation. National policies and social guide will play a big role.

Former ministry of science and technology of "863 project", "863 plan" is a bit like more draft process, is that you tell me what you do project, ministry of science and decided to give you how many money, want to be able to make it want results, not process steps of assessment and feedback. But the project of national integrated circuit fund is very good, it is a combination of the inside of the more common in the world of high-tech risk investment industry and capital operation, the money will be invested in a specific company, also get into some of the industry capital, such as into smic, 28 nm done faster and better, make the research and development of 14 nm done faster and better, and it also cast thunis, support industry capital operation model.

Bullish on large-scale mergers and acquisitions

Surging news: are you optimistic about the Chinese semiconductor companies large-scale mergers and acquisitions?

Mr. Meng: semiconductor industry are the obvious cyclical, semiconductor company, whether it's design company, or like smic, TSMC manufacturing company, in good cycle especially good, supply all too late; Bad, it is fast, this is the characteristics of the industry. The semiconductor industry is a process of stable fell slightly in the whole world, this with the global economic environment, industry periodically.

M&a I look good, it is automatically in the industrial restructuring process of digestion, is completely flooding dynamic market economy, if the economic downturn, or supply and demand change, for more, industry internal reassembled after digestion, there is a chance to restart, from past experience, are relatively positive influence. Over the past two hundred and thirty years, the development of semiconductor industry, m&a has been constantly, every few years there will be some big acquisitions.

China's semiconductor industry, the design company compared with the past few years, there is a very fast progress. Whether the communications industry, or other applications, all of the semiconductor design company, digital simulation, grow up quickly. The development of the next step is how to do better in the accumulation of scale, intellectual property rights. In the semiconductor industry, regardless of design or production, if there is no scale, economic benefit is not too ideal. With scale accumulation, can we truly do have income, can do accumulation, innovation and intellectual property to constant innovation and growth.

Because sometimes, the domestic enterprise competition in the pursuit of economies of scale, to give up the profits. No profit, no accumulation of intellectual property rights, but in this industry has been burning money, do not too long. The semiconductor industry, the development history of the past three hundred and forty years, the capital market to the industry more calm, not like in the Internet industry for so much money. Still want to see. If there is no income, investment funds, can be very effective in start stage, but how to make enterprises make good use of the money, can truly be development, innovation, and also need to see the back of the effect.

In 2030 China's semiconductor industry will enter the world's first echelon

Surging news: from your point of view, China's development of semiconductor roadmap should be what kind of?

Meng park: I feel or have the scale, the semiconductor industry, no scale is up to. Qualcomm's is the mobile Internet, as in the past few years, the growth of wireless Internet intelligent terminal smartphones is very large, so this industry is also faster. Now everything from wireless Internet to Internet connected, there will be more opportunities. It as a road map, as the enterprise's strategic target, the Internet of the forward-looking industry should be a better way.

Countries in 2030, is the use of 15 years, in the semiconductor industry, including design, production, packaging, into the world's first echelon. Along with the development of these a few years, the state's attention and capital to enter, we in the industry transition, from wireless Internet to interconnection of all things the Internet of things have created many opportunities, whether called corner overtaking or other, in short, there are more opportunities, time is very good. So I think in 2030, the national integrated circuit development outline of the target should be very possible.

Taiwan's successful experience is worth learning

Surging news: the mainland can be obtained from Taiwan semiconductor development what enlightenment?

Meng park: Taiwan semiconductor industry development very well, for any of the developing countries and regions, Taiwan has a lot of successful experience, must learn. Taiwan semiconductor industry is basically from scratch, they pay attention to attract people to achieve the requirements of technical economies of scale, a large number of international students in the United States and Taiwan in the semiconductor industry employment personnel back to Taiwan, and Taiwan's government, industry, capital market spent a lot of money, so I have to Taiwan semiconductor industry over the past 20 years of rapid development, it also led to its PC (personal computer) and the development of other industries, the successful experience is worth learning.

Over the past 20 years, Taiwan's PC manufacturing and semiconductor manufacturing transfer to China. China now has the cost advantage and market advantage, so there are more and more semiconductor resources are gathered to the mainland. A lot of orders before the traditional 100% for Taiwan enterprises, now part of mainland companies were diverted, the Taiwan semiconductor companies, as happened in the past for other manufacturing industry, there will be more and more pressure of competition. After all the mainland market scale is larger, and industry chain is more and more full, upstream and downstream side of the mainland. So I don't think produce the next half of the transfer to the mainland trend will be more and more.

The early development of semiconductor industry in the process, the local market is not so important, the semiconductor industry of Taiwan, South Korea, both policy guidance and funding at an early age, are doing better. But after a long time, especially for a lot of cyclical industry, if there is no domestic demand market, will be able to go very far. If mainland China since the industry demand for semiconductors have not come, the Taiwan semiconductor industry will continue to boom, but if the mainland market scale, 100% of exports of economy will have a big pressure.

From the global market size, one is the United States, one is China, regardless of its population, economic scale, market scale, the two market can become a relatively independent, so to support the domestic industry will have obvious advantages. Now globalization, every region, every market in different stages of development, has its historical mission, this mission has been completed, need to find new development opportunities.

At the early stage of the past 30 years, capital intensive, technology intensive market for mainland China don't have, so some other areas, such as the four Asian tigers, with lots of opportunities, both capital and technology, are better than big Liu Xian step. But now through the past thirty years of development, no matter in the accumulation of capital, technology, talent, and mainland China are developing very well, a lot of ways can do replacement to upgrade.