China's industrial transformation trough, wave. Trough is the iron and steel industry overcapacity, such as coal peaks were large aircraft capacity of the industry such as semiconductor. Yes, production capacity is insufficient, that need large imported from overseas, a table that gives local investors to provide a gluttonous feast.

How big is the market?

Popularization of a concept first, semiconductor can be divided into four types of products, integrated circuits, optoelectronic devices, discrete devices and sensors. The largest of which is the integrated circuit, accounting for 81% of the semiconductor market, accounting for the absolute dominance. So many people confuse the integrated circuit and semiconductor.

In 2015, China's imports of integrated circuits to spend money as much as $230.7 billion, is the first major imports. And according to the national manufacturing strategy advisory committee estimates of power construction, in 2015 China's IC market accounted for a third of the world, growth is the global average of 3 times, after 10 years, will further to reach 45% of the world.

Such a large and important market, currently supplies more than 95% of the products are all from foreign, this is the Chinese government will not tolerate, in order to regain the strategic control of the lifeline of industry, a wave of state-led investment to open the curtain.

The starting point of the wave, was released in June 2014, the national integrated circuit industry development promote the outline. Followed by one year after the release of "made in China 2025", a new generation of information technology industry is in the first place.

A written pledge to fulfill a military order, have to have the thunder action, once our government attaches great importance to the up, drive often than you imagine. Specifically, the three aspects:

The top design: 1, the state council set up a "national leading group for the integrated circuit industry development";

2, intermediate support: institutions, such as national IC big fund, established in 2014, to provide convenient investment, finance and tax, credit, market, etc;

3, the underlying operations: integration of potential talent and enterprise, the unified action.

From the big fund first.

Big fund by CDB capital, China tobacco, China mobile and other 15 enterprises investment, legal representative is the ministry of industry and the financial secretary. The first 138.7 billion yuan raised, until the end of 2015 has spent 42.6 billion yuan, including chip manufacturing investment accounted for 45%, chip design investment accounted for 38%, the rest for testing and equipment investment. Second stage funds raising money is about to begin.

He is the key of the investment surge.

So, what to pay attention to the money? There is, of course, the semiconductor industry can be broadly divided into high-end, midrange and low-end three levels:

High-end is upstream of the IP development, equipment manufacturing, materials of three parts, this is the highest profit margins, the highest part of the technical threshold, but the overall market size is not big. Like luxury luxury goods, although profit margins, but from the perspective of investment may not be profitable.

Midrange including chip design and chip manufacturing, which is part of the largest and most profitable, created the Intel, qualcomm, TSMC, samsung and so on one batch of market value of billions of giants, and countless billion-dollar business. Only over the mountains, the goals of 2025 will be made in China.

Low-end mainly encapsulation testing and other analog circuits, sensors, such as discrete device branch of industry. These industries or technical threshold is relatively low, it is easy to enter, or the size of the market is relatively small, investment less attractive.

The first investment is started from the bottom of the testing industry.

Three of the big fund seeds were long telegram technology, rich micro electricity and huatian technology. Long telegram science and technology, in particular, it may be said is a striker. In January 2015, the long telegram technology for $780 million of the world's fourth largest testing enterprise Singapore's chippac, big fund credit behind.

Why do you say that?

Because star families chippac 2013 at the end of the total assets of 2013 yuan, while long telegram technology only 7.5 billion yuan, equivalent to two of the latter. While the latter is the acquisition of about 4.8 billion yuan, and are all cash transactions. This is a typical "snake swallow like," don't eat with long telegram technology strength.

At this critical moment, big fund on the $150 million equity investment, on the $140 million loan, but also to the $100 million investment in smic, facilitate even help him with the Singapore's temasek through political line. Finally, the long telegram only spent $260 million on science and technology, the total volume of one-third of the money, is smooth to eat star chippac.

The first world war, the long telegram industry, science and technology from the world's sixth seal test at once into the top three, is change another pattern of global testing industry.

The first blow and then into the more the upstream of the wafer manufacturing and storage areas.

The current block, a would-be, shows, u.s.-based Intel, Korean samsung, SK hynix, Taiwan's TSMC and umc has a factory. Since 2014, has more than 200 billion yuan investment amount.

And local capital, also started quietly, one of the most outstanding, is four army semiconductor.

The red army, called thunis

Violet light is what position? Opinions vary, we don't go to guess. Can be seen from the tooling, large funds of a unit is in him, buy the most expensive is around him.

Some examples:

In July 2013, the purple light acquisition of spreadtrum communications, $1.78 billion;

In January 2014, the acquisition of RuiDi division, $910 million;

In September 2015, acquired xian hua core.

In November 2015, the acquisition of tongfang core, which has a market value of $3.1 billion. Two years, will be the best of the domestic independent chip design companies all income.

In May 2015, the purple light acquired 51% HP, xinhua three communication, $2.5 billion;

December to spend $2 billion become the island's two testing plant and south mau science and technology of silicon goods shareholder... His latest step, is to spend 4 billion yuan to build an integrated circuit industrial park in xiamen.

Cumulative down, two years have been billions dollars spent money, money, for purple light, seems to be not enough problem, but can't spend his problem as soon as possible. In simple terms, to assume the role of purple light, is in the field of integrated circuit, the boe upgrade version of the east, and even Beijing's goal is to do whatever it takes to hold up the local semiconductor industry.

The red army, called wuhan new core

In fact, in addition to the national large funds, but also some small local funds, such as Shanghai small funds, have 60 billion yuan, the size of the xiamen small fund 50 billion yuan, the size of the small funds, Beijing and wuhan has the scale of 30 billion yuan.

And wuhan new core project, the wuhan's full support, verve, riches for same. This project is some history, as early as in 2006 has been set up. But due to restrictions in terms of technology, talent, capital, has been struggling in the loss. Until this year, the policy of the spring breeze blowing, wuhan new core suddenly found herself standing in a draught, soon won the local government investment of $24 billion.

If you want to make a "smiled very city", wuhan new core is necessarily worthy protagonist. At present, the factory is domestic only has a memory chip production capacity of FAB factory, representative products include 45 nm and 65 nm flash memory. And the other to receive 3 d in the American spansion NAND technology, but also for other local troops envy of.

What is a 3 d - NAND technology? In simple terms, now the flash is planar technology, because technology has close to the physical limit, want to further enhance the capacity, can only go to the direction of the 3 d development. In this respect is the most leading samsung, the somebody else has to play to 48 layer, next year will achieve 64 layers, and the other two players Toshiba and Intel also has a high investment in this area.

Turned to look at our wuhan new core, actually only through two-way merchants fly line 9 layer 3 d NAND technology, from samsung behind for three generations. But no matter how, this is China's only child, after all, in China's semiconductor industry pursued advanced race, he will be a flood of money.

The red army, called experiences of fujian

Fujian is a treasure place for the administration of dragon vein, investment big little of course not. This project first phase investment of 37 billion yuan, located in jinjiang. Small jinjiang, of course, is not so great courage, is also behind the big fund in planning. The end of June, a big fund, quanzhou, fujian jinjiang three levels of government together to make a small funds, $50 billion, nature is the escort experiences.

On the other hand, the experiences of umc boarded the ties with Taiwan. The umc will accept the experiences of the entrusted development of DRAM related process technology, financed by experiences, technological achievements Shared between the parties. Therefore, umc has deployed more than one hundred technical team to cooperate.

Red fourth-front armies, will be settled in hefei

Hefei as the rising a new star in the middle, took the eye. First, gree, midea, haier has settled in, and then become the largest flat-panel LCD production base in Beijing east, also attract to Taiwan in 2015 crystal a 12-inch wafer plant.

Last year the fabs, on the foundation stone laying ceremony of big fund general manager has said publicly: hefei have the building of "China IC" confidence and determination! Hefei exactly he2 de2 he2 ability? The answer is simple, is USTC education resource advantages, and just like in fujian, deep background.

The United States, according to the latest information on grace of pu semiconductor has its two business selling for $1.8 billion and $2.75 billion respectively to a Chinese state-owned investment company, its ownership will be injected a listed company, hefei sasac subordinate and related production base will also settled in hefei. Rumours have not yet been confirmed, but a good chance.

Four big army demonstrated that let mustachioed top is a little bit worried.

In April, President xi jinping in national symposium on network security and information technology said, "we have gap with the international advanced level in the core technology, a very prominent reason, is our backbone enterprises did not like Microsoft, Intel, Google and apple form synergies."

Three months later, the red army to eat the red army, the Yangtze river storage technology co., LTD was founded, the total investment of 160 billion yuan. Purple light chairman wei-guo zhao Ren Changjiang storage, chairman, general manager of big fund Ding Wenwu (the ministry of electronics information secretary) deputy chairman of the board of directors, CEO of wuhan new core campaigned for President of the general manager.

There, campaigned for is what position? Look from the resume, the once successively for Intel, Singapore chartered, smic, dry is mostly CTO of live, has rich experience in technology research and development and management. The operations of the Yangtze river storage, core team are mostly from the international to come, now accumulated a large fund, purple light, wuhan new core force of conceptions, nap or nothing.

New Yangtze river storage capacity and the factory will release in 2018, then the world will have at least 20 new fabs was completed at the same time, of which 10 will be located in China. At that time, the global semiconductor industry will be the most difficult days, just to see who can endure to astronomical losses, and run to win in the technology of the nation.

This is doomed to be a bruising battle of life and death, and in order to the first world war "only have, no," the Chinese government has pressure bet more than the $150 billion.