"In the research and development of 14 nm, all vendors are many larger than the smic. Intel, samsung and TSMC's dimension is smic at least 10 times. However, smic's promise in the industry, we will resolutely, continue to spend resources on new technology, efforts to research and development, after other competitors in the industry." Smic's chief executive officer and executive director, said chiu.

"No money never do"

Along with the advance of technology process, fewer and fewer number of companies have the ability to compete. Chiu said that in 130 - nanometer technology nodes, there are at least two dozen companies can go into production; But at the end of the 65 nm and 55 nm, the number of manufacturers have manufacturing capabilities in rapid decline.

In 28 nm, basically just a seven or eight home can enter production. Instead of 14 nm predominantly foundry enterprises into the research and development production, to be able to continue only Intel and samsung. Even and Toshiba, IBM on logic chip, also gradually give up the pursuit of development and production.

So, accumulated a lot of valuable knowledge and established manufacturers of high-end talent, why die? Money is one of the most important reason.

Chiu said, in every technology nodes, it takes a lot of money. 28 nm is research and development spending roughly $900 million to $1.2 billion, 14 nm research and development spending in 1.3 billion to an estimated $1.3 billion.

And the cost of the factory is more expensive. For 28 nm, a basic 35000 wafer factories, you need to cost $3.5 billion. So, this enormous investment for every enterprise, is a great challenge.

"Money is not just"

TSMC, Romania, umc and smic is currently the world's top four pure foundry enterprises. From 2011 to 2015 in sales growth as you can see, after a lot of capital investment, TSMC grow very fast indeed, from $14 billion to $14 billion. Romania DE, umc and smic sales growth at around $1 billion, but in terms of growth, smic is much higher than the other two.

That add huge investment we will be able to pursue advanced technology results? Chiu said, from the capital to increase the conversion rate to calculate sales, every dollar invested, TSMC can generate sales is about 3 hair 6 cents, smic around 3 MAO 3 cents, "Romania and umc were about 6.8 points and nine cents. "Recently, because the country's emphasis on semiconductor industry, causing many local governments has great enthusiasm for investment in semiconductor." Chiu said, "but this set of data tells us that the semiconductor industry is a very difficult industry, do bad, a lot of input does not arise enough revenue, but bring huge losses."