Retrospective data from 2011 to 2015, China's IC industry output value keep growth above 10%, nearly two years growth is around 20%, and make the growth gradually rise since 2012, to 2015 annual production growth to 25% more, fully embodies the Chinese strong national spirit in IC manufacturing industry development.

A, the output value of China's IC industry

With IC manufacturing output

IC industry in the national economic development and national security, has been one of the crucial since 2000, the Chinese government has published a series of uninterrupted, IC industry key support and development policy of "national integrated electric road development promote the outline" put forward goal: China's IC industry 2030 years ago, among the world's leading camps in IC manufacturing field is also put forward in 2020 16/14 nano scale production goals.

Drive IC chip in the electronic information industry development demand rapid growth, in 2015 China's IC product imports as much as $231 billion, $160 billion trade deficit with China super, import substitution demand is extremely urgent. "Prism gate" incident broke out in June 2013, information security has been upgraded to the height of national security strategy, the Chinese government on the one hand, began to "IOE" (IOE details is a delegate with IBM mainframe, representing the relational database, and represented by EMC advanced storage devices), on the other hand, support the development of China's integrated circuit industry actively.

Since June 24, 2014 the state council published "countries promote the IC industry development outline" so far, China's IC industry has made great achievements, in 2015 China's IC industry revenue reached 361 billion yuan. Since 2012, China's IC manufacturing industry development has been faster than IC growth industry as a whole, the compound growth rate of close to 20%, from 2012 to 2015 in 2015, China's IC manufacturing sales of 90.2 billion yuan.

As mentioned earlier, although China's semiconductor market has become the first big market, but on the whole, semiconductor related products rate is still low, only about 27%, still has great alternative space in the future.

Second, the major events in the IC manufacturing

(a) China's IC manufacturing industry deal with the new factory project

In response to rely heavily on imported IC chip products, improve its self-sufficiency rate of China's IC chip products and Chinese suppliers to speed up the pace of investment expansion in recent years, the "made in China 2025" clearly put forward its self-sufficiency rate of 2020 was 40%, and the rate of 70% in 2025, thus attracting TSMC and umc and GlobalFoundries global trade in China to build 12 inch fabs.

With each big 12 "fabs enters China in succession, the local government also show the eager to develop enthusiasm, it also brings to the government problem - how to allocate resources.

The Yangtze river is expected to store launch investment about 3 years will be the most critical and difficult moment, when the Yangtze river storage products can compete with rivals, whether in huge investment under the weight of maintaining strategic concentration, it is on the journey to China's IC industry development must move beyond a threshold.

(2) at the end of 2016 production 10 TSMC nai metric

Mesh on the front desk in advanced semiconductor manufacturing process, step by step, is to catch up with Intel expects the fourth quarter of 2016 production 10 nanometers, seven nanometers has entered the stage of mass production in early 2018, Intel will be extended to season 2, 2017, 10 nanometers though Intel 10 nanometers in Device and Gate Density higher than 10 nanometers, TSMC, but advanced process is gradually narrowing the gap between the two.

In addition, TSMC for successful mastery of apple and mediatek and other large customers, with samsung in the conflicts and Intel have been absolutely dominant attitude, is expected in 2017 the new apple smartphones, the most critical A11 processing chip will be carrying 10 metric cheng, TSMC with TSMC integrated packaging technology sector (InFO), 10 nai the market share will authors, is as high as 70%.

China, smic in the past few years has been significant narrowing and umc, but the advanced process development still lag behind TSMC and umc.

Third, China's IC manufacturing industry structure

And on behalf of the manufacturer

(a) China's IC manufacturing industry pattern

Global 12-inch fabs capacity to China is a foregone conclusion, China's existing 12-inch fabs capacity of 420000 pieces per month, including Intel (dalian), samsung (xian), SK Hynix (wuxi), smic LiWei electronic (Beijing and Shanghai), and China. China from 2016 to 2018 new fabs output can be as high as 635000 / month, accounts for the proportion of total output of global 12-inch wafer plant can also by 10% in 2016, rising to 22% in 2018. China new 12-inch fabs including core (xiamen), wuhan new core and experiences (jinjiang), TSMC (nanjing), deco (huai), jing (hefei), signs in the base of science and technology (hefei) and GlobalFoundries (chongqing), etc.

In fact, can be seen from the map, from north to south China 12-inch fabs are mainly distributed in bohai sea, the Midwest, Yangtze river delta and the pearl river delta four regions, have been springing up.

(2) China's IC manufacturing on behalf of the manufacturer

2015 global top 10 in the contract, the first four giant TSMC, umc, samsung and GlobalFoundries, total share has been as high as 79.6%, one TSMC coppi, market share of 53%, China smic, huahong hongli at 4.5% and 4.5% respectively ranked fifth and ninth.

As a For China's leading wafer foundry, smic in the first three months of 2016 sales of $634 million, up 24.5% year on year, sales innovation is as high as $2015 in 2.236 billion, the annual growth rate of 13.5%, has been sharply over umc, umc 2015 revenue growth rate of 2.1%, the current smic 12 inches of the quantity of 62500 pieces, and 8 inches in the quantity of 162000 pieces, (8 inch wafer Capacity of 315000 pieces per month.

Smic is China's first to provide advanced process of 28 of pure foundries, adopt the industry mainstream technology, contains the traditional polycrystalline silicon (PolySiON) and the gate after the high dielectric constant of metal gate (HKMG) process. At present have been successful in 28 nai metric cheng cheng for the core of SOC chip and complete cast slice, qualcomm Xiao dragon processor chip and 6 months in 2016 core Beijing factory successful production Xiao dragon 425, and then consolidate in wafer foundry leader position in China.

In addition, in 2016, six months core international paid 49 million euros for Italy foundries LFoundry 70% stake, with the acquisition, smic's foray into the global automotive electronics market. However, smic capacity mainly distributed in more than 65 nanometers, of which 0.13 microns low-order process smic annual revenue is more than half, while 45 nai metric cheng in 2015 revenue accounts for more increased by 5% 16% in 2014, but 28 nai metric cheng in 2015 less than 1% of total revenue accounted, continue to expand 45 nanometers process capacity, as soon as possible breakthrough 28 nai metric cheng 16/14 scale production and development of nanotechnology, smic is the major issue.

Shanghai huahong NEC electronics co., LTD. And Shanghai giant macro semiconductor manufacturing co., LTD., a consolidation, and the current in jinqiao, Shanghai zhangjiang and a total of 3 200 mm IC production lines, production capacity of 2016 season 2 151000 / month, the main process node covering 90 nanometers ~ 1 micron, main building embedded nonvolatile memory, power device, logic, power management, rf, analog and mixed signal system e-course, which is given priority to with smart card and MCU application of embedded non-volatile memory system e-course sales accounted for 40% of the company's annual revenue.

Huahong hongli 0.15 microns process about 60% of total revenue, company's quarterly results show that: the ratio of 0.13 meters, and other advanced process over the past year all the way down, down to 38.4% by 2015 season 2 of season 2 33.3% in 2016. Huahong hongli 2015 annual sales of 2015 yuan, the world city accounts for only 1%, with 12 inch factory rise, 8 inch factory must go in the path of differentiation competition, on the one hand the high-growth and high value-added products market, on the other hand to continuous innovation investment.

Four new layout, memory chip industry

On the global memory chip manufacturing is mainly composed of samsung, SK hynix, meguiar's monopoly, Toshiba, and Intel and other international companies, in 2 d - NAND process under the condition of process basic limits, the company began to explore the 3 d - NAND technology, samsung 32 layer and 48 V - 3 d NAND products, with micron and Intel 32 layer 3 d - NAND products, has been officially put on the market at the end of 2015, Toshiba, SanDisk and SK hynix early in mainstream into 3 d - NAND vendor on the road a bit slow, but in July 2016, Toshiba and SanDisk announced at the same time, has developed 64 layer 3 d - NAND flash process technology, and plans to adopt the technology 256 gb (32 gb) products for mass production in the first half of 2017, then samsung also immediately announced in late 2016 to volume 4 gv - NAND layer (64). In the field of emerging technologies, GeChang manufacturers are at the starting stage, distance is not completely opened sharply, the memory chip industry development is favorable factors in China.

Memory chips in China almost totally dependent on imports, imports accounted for about total imports quarter of IC chips, although China has samsung, Intel and SK hynix 3 companies set up a memory chip manufacturer, but are all foreign holdings, the manufacturer is strictly confidential to process technology, Chinese engineers are difficult to go to the core technology, the influence of the storage chip manufacturing industry in China is very limited.

In addition, the purple light through buying SanDisk purchase shares from western digital curve by the committee on foreign investment in the United States (CFIUS), ultimately failed, it also remind the Chinese can not use money to buy get real core technology, so the development of Chinese storage chip will need to focus on the direction of the combination of independent innovation and technological introduction.

In new fabs, wuhan new core and jin huadu focus attention on the storage chip, including wuhan new core and Spansion into NAND areas of cooperation, plans to launch 3 d - NAND products, close the gap with South Korea and the United States manufacturers; Experiences of umc together hand in hand, to avoid competitive market standard memory, memory based on niche mode as the breakthrough point, to build China's DRAM industry. In addition, for the further integration of resources, focus on the development of storage chip industry, purple light and set up the Yangtze river to wuhan new core storage technology co., LTD., wei-guo zhao chairman, national IC development fund Ding Wenwu as vice chairman, general manager, at this point, the ship storage chip manufacturing industry in China has just launched.

Five, the conclusion

Since 2011, China's IC manufacturing is around 25% higher growth rates, fully embodies the Chinese strong national spirit in IC manufacturing industry development, especially the recent international famous wafer makers in China, with local fabs technology import and resource integration, China's huge market space is bring infinite distant manufacturers Think that the future can complete the transformation of domestic alternative, is China's IC manufacturing industry must face the problem and focus.

China 12-inch fabs, distributed resource allocation will not be able to achieve scale effect should be, at the same time, the scale advantage not vendor will trigger a vicious competition in the future, could eventually put the IC industry development in harsh operating environments. The future China's IC manufacturing industry differentiation competition is the important way to circumvent the small-scale manufacturers of vicious competition. In addition, the reasonable resource integration to form scale effect is also the future development trend of China's IC manufacturing.