Xiaohua of the Ministry of Industry and Information Technology: building a large industrial chain of chips and the whole machine

China's integrated circuit industry continued its rapid development since the beginning of the "Eleventh Five-Year Plan" period. The mid-term impact of the international financial crisis and the silicon cycle of the integrated circuit industry fell for two consecutive years, but in the domestic macroeconomic economy and global integration Driven by the recovery of the circuit market, China's integrated circuit industry reversed its decline and achieved substantial growth in 2010. During the "11th Five-Year Plan" period, the industry's technological innovation power, market expansion capacity, and resource integration vitality have laid the foundation for the industry to achieve rapid development and take a new step in the next five years.

(I) Continuously growing industrial scale and rising international status During the “Eleventh Five-Year Plan” period, China’s integrated circuit production increased from 26.11 billion to 65.3 billion, with an average annual growth rate of 20.1%. Sales revenue increased from 70.21 billion yuan to 144.02 billion yuan, with an average annual growth rate of 15.4%. Among them, the integrated circuit design industry grew from 12.43 billion yuan to 36.39 billion yuan, an average annual growth rate of 24%, the fastest growth; chip manufacturing industry from 23.29 billion yuan to 44.71 billion yuan, an average annual growth rate of 14%; packaging and testing industry From 34.49 billion yuan to 62.92 billion yuan, the average annual growth rate of 12.8%. During the "11th Five-Year Plan" period, the average growth rate of China's integrated circuit industry is 10% higher than the average growth rate of the global integrated circuit industry (5.4%). It is one of the fastest growing regions in the global integrated circuit industry. China's integrated circuit sales revenue increased from 4.5% in 2005 to 8.6% in 2010. Output accounts for nearly 10% of the world's total, and its international status continues to increase.

(II) Increased capacity for independent innovation and breakthrough in mid-to-high-end products Independently designed product categories are constantly enriched, extending from the low end to the mid-to-high end. Network router chips, 3G mobile communication chips, mobile Internet chips, digital TV chips, CPUs, MCUs, and security chips are all successfully developed and occupied a certain market share. The successful development of the 40-nm TD-SCDMA multi-mode mobile phone chip has provided strong support for the promotion and application of the TD-SCDMA standard.

65-nanometer manufacturing process to achieve mass production, 45-nanometer manufacturing process will also be successfully developed and mass production in 2011; high-pressure technology, digital-analog hybrid and power devices and other specialized process modules developed successfully to meet domestic demand; 12-inch production line up to 5 , 8-inch production line up to 14. New packaging technologies such as BGA, CSP and MCP have been applied in some production lines. High-density ion etchers, high-angle ion implanters, and 45-nanometer cleaning equipment have made substantial breakthroughs, and some devices have been operating on the production line. Monocrystalline silicon, photoresist, polishing fluids, high-purity gases, and targets have made significant progress.

(III) The industrial structure was gradually optimized, and the pace of resource integration accelerated the proportion of the three major industries of chip design, manufacturing, and packaging and testing increased from 17.7%, 33.2%, and 49.1% in 2005 to 25.3%, 31%, and 43.7% in 2010. It has formed a parallel and coordinated pattern for the three industries. The industry's upstream equipment and materials industry has also made significant progress and formed a certain industrial scale. The industrial agglomeration effect is even more pronounced. The three agglomerations in the Yangtze River Delta, the Bohai Sea in the Beijing-Tianjin-Hebei region, and the Pan-Pearl River Delta continue to flourish, and the development of western towns such as Chengdu, Chongqing, and Xi’an is accelerating.

The cooperation between domestic design companies, chip manufacturing companies, and chip manufacturing companies continues to deepen. Datang Telecom acquires shares in SMIC, BYD acquires Ningbo Zhongwei, and Shanghai Hua Hong NEC and Shanghai Grace Semiconductor jointly invest to establish 12-inch Shanghai Huali Construction. production line. Leading domestic manufacturers actively explored international mergers and acquisitions, Spreadtrum’s overseas acquisition of Quorum, Changjiang Electronics acquired Singapore’s APS, and Inspur Group’s acquisition of Qimonda Xi’an’s R&D center, which significantly improved its technological capabilities and market competitiveness.

(IV) The company’s strength has been steadily improved, and its market development capability has been enhanced. By 2010, 332 integrated circuit design companies were identified, and 145 companies with integrated circuit reform and development committees were recognized as integrated circuit manufacturing companies. There are 4 integrated circuit companies that have entered the list of top 100 electronic information companies. More than 60 design companies had sales revenue of over 100 million yuan, and the highest sales revenue was 4.5 billion yuan. The sales revenue of two manufacturing companies exceeded 10 billion yuan. SMIC's 65-nm manufacturing process has accounted for 9% of total production capacity, making it the fourth-largest chip foundry company in the world.

Among the top 10 packaging and testing companies, the status of Chinese-funded enterprises such as Changjiang Electronics and Nantong Fujitsu has significantly increased. Changjiang Electronics has entered the ranks of the top 10 packaging and testing companies in the world. The market competitiveness of a number of advantaged design enterprises has increased significantly. Spreadtrum Communications and Lianxin Technology have shipped more than 30 million TD-SCDMA terminal chips; Beijing Junzheng and Fuzhou Ruixin have achieved market leading position in multimedia processing chips; National Technology’s USBKEY security chip has a domestic market share of more than 70%; Suzhou Guoxin's embedded CPU cumulative shipments exceeded 100 million; digital technology TV and Hangzhou Guoxin’s digital TV chips broke the monopoly of foreign countries, and the digital TV channel demodulation chip market accounted for more than 50% of the market; Huada Electronics and Datang. Microelectronics, Tongfang Microelectronics and Shanghai Huahong have cumulatively supplied 1.15 billion second-generation resident ID cards.

(V) Continuous improvement of external environment, innovation and development present vitality Continue to implement the No. 18 Document of the State Council, Notice on Certain Preferential Policies for Enterprise Income Tax (Cai Shui [2008] No. 1), etc. have been issued in succession to ensure the stability of IC industry policy. Sex has played an important role in promoting enterprises to expand production and guide social capital investment. Supported the construction of public service platforms such as Beijing and Shanghai, and initially formed a relatively complete public service system. The service capabilities in EDA design tools, intellectual property management, product evaluation, etc. continued to increase, and the development of SMEs was promoted. Investment and financing channels have gradually expanded, and a group of IC companies have been listed on the domestic main board, GEM, or overseas. High-end talents have accelerated their inflow and convergence into the integrated circuit industry. A large number of overseas high-end technical talents and management personnel have come to China to work or have returned to China to start their own businesses. Locally-developed industry leaders, high-level professional and technical talents and compound management talents have emerged constantly, and the industry has become more competitive. The ability to innovate has been significantly improved. China's integrated circuit industry has become one of the most active high-tech fields in innovation.

The situation and problems facing the development of the "Twelfth Five-Year" integrated circuit industry (1) The situation facing 1. The increasingly clear line of technological evolution is that the level of chip integration continues to increase. Integrated circuit technology will continue to advance the Moore's Law for a period of time. The chip integration and processing capacity represented by the CPU will continue to grow, and the semiconductor memory storage capacity will continue to increase. The current 32-nanometer process has been mass-produced, with 22 nanometers in 2012 and 18 nanometers in 2014. The second is the obvious trend of functional diversification. Integrated circuit products target value first and function diversification, and pay more attention to new functions other than integrated operation and storage. More and more products integrate RF communication, power control, passive components and sensors, and system-level packaging. Advanced packaging technologies such as SIP are more widely used.

2. Global IC Industry Competition Will Become More Intense Under the impact of the financial crisis, global industrial resources have undergone a new round of restructuring, with a higher degree of industrial concentration. No matter the mainstream product market or the OEM market, the level of competition will be further increased. The requirements for capital and technology are also getting higher and higher. Intel Corporation invested US$7 billion to develop 32-nanometer technology, Global Foundry acquired Singapore-based Chartered Semiconductor for US$1.8 billion, Texas Instruments acquired US National Semiconductor for US$6.5 billion, and multinational corporations increased global resource integration efforts. For domestic companies with insufficient resources such as capital, technology, talent, and sales channels, the challenges are even more severe.

3. Model innovation gives us new opportunities in the new round of competition In the process of increasing competition in the integrated circuit market, model innovation has become an important way for companies to gain competitive advantage. First, with the rise of new mobile internet terminals, the “Google-ARM model” has emerged, and the original “WINTEL system” has been challenged. Embedded processor based on ARM CPU core has occupied 75% of the total market sales. the above. The second is that the whole machine manufacturer cuts into the integrated circuit field with a new model. Based on the commercialized IP core, Apple has designed and produced the core chip "A4" for iPhone 4 and iPad by means of OEM. This gives domestic companies strength. The whole machine company has brought new enlightenment to enhance its core competitiveness. Third, the development of system-level chips, nano-scale processing, and high-density packaging combined with hardware and software puts higher requirements on IC companies' ability to integrate upstream and downstream industrial chains and industrial ecological chains, and promote the emergence of virtual IDM models.

4. The rise of strategic emerging industries has injected new impetus for industrial development. The introduction of new information products and services has accelerated the application and popularization of information technology, resulting in a large number of new demands, which has greatly expanded the space for IC industry development. The average annual growth rate of the IC market in China in the past five years was 14%, reaching 734.95 billion yuan in 2010. The rapid development of strategic emerging industries represented by mobile Internet, triple play, Internet of things, cloud computing, smart grid, and new energy vehicles will become new to the development of the integrated circuit industry following computer, network communications, and consumer electronics. power. It is estimated that the domestic integrated circuit market will reach 1.20 billion yuan by 2015.

5. The implementation of the new policy has created a better environment for industrial development. On January 28, 2011, the “Circular of the State Council on Printing and Distributing Certain Policies to Further Encourage the Development of the Software Industry and the Integrated Circuit Industry” (Gufa [2011] No. 4) was officially released. It is the first major policy that the country introduced to support the development of high-tech industries in the beginning of the 12th Five-Year Plan period. The document expands support policies for finance, taxation, investment and financing, research and development, import and export, human resources, intellectual property, and markets. It also expands the scope of support, extending from integrated circuit design and chip manufacturing to include packaging and testing, materials, equipment, and instruments. The entire industry chain. The implementation of "No. 4" will certainly further promote the long-term sustainable development of China's integrated circuit industry.

(B) The main problems facing 1. The overall size of the industry is small and the self-sufficiency of the market is insufficient. In 2010, the sales income of China's integrated circuit industry was 144.02 billion yuan, accounting for only 8.6% of the global market. China is the world's largest integrated circuit market, but products designed and produced by itself can only meet one-fifth of the market demand. CPUs, memories, and other general-purpose chips mainly depend on imports. High-end chips in domestic communications, networks, and consumer electronics are also basic. Rely on imports. IC has been the largest importer of goods for seven years in a row. In 2010, imports reached US$156.99 billion.

2. Small-scale enterprises, scattered power, and technological innovation can not meet the needs of industrial development China's IC companies are mainly small and medium-sized enterprises. The largest chip manufacturing company has an annual sales income of more than 10 billion yuan. It is only the world's largest manufacturing company in the same year sales revenue. 1/7; the largest design company sales revenue is only 1/10 of Qualcomm’s. The company's power is scattered, and the total size of more than 500 domestic design companies is less than half of Qualcomm's revenue. The mainstream product design technology level is still low-end, and the manufacturing process is two generations away from the international advanced level. The new high-end packaging technology is still lacking, and it is difficult to meet the industrial development needs.

3. The value chain integration capability is not strong, chip and machine linkage mechanism has not yet formed the accumulation of most domestic design companies, domestic chips are mainly low-end, lack the ability to define products, and do not have the ability to provide system solutions, it is difficult to meet the entire Machine business needs. Most of the entire machine companies stay at the processing and assembly stage, lacking enthusiasm for adopting domestically-made chips, and the whole machine product leading the domestic IC product design innovation has not yet formed. There is not enough communication between the chip companies and the complete machine companies, and there are not many enterprises with strategic cooperation relationships. There is no comprehensive and multi-level linkage mechanism.

4. The industrial chain is not perfect, and the development of special equipment, instruments, and materials lags behind in the upstream links of the industrial chain such as special equipment, instruments, and key materials, which is insufficient to support the development of the integrated circuit industry. At present, domestic equipment still stays at a relatively low end and separates a single product stage. Only a few high-end equipments have been put into production line trials. The system complete sets of equipment, pre-process core equipment, and test equipment on the production line almost all rely on imports. Large-scale domestic silicon wafers, photoresists, special gases, masks and other key materials are also basically dependent on imports.

The key tasks and measures in the “Twelfth Five-Year Plan” are to accelerate the formulation and introduction of laws and regulations and to further create a favorable industrial environment. Actively implement the "Several Policies on Further Encouraging the Development of Software Industry and Integrated Circuit Industry" and coordinate the promotion of relevant rules. Strengthen industrial investigations and timely adjust the "Industry Catalogue for Duty-free Imports of Raw Materials and Consumables for Self Use". Implement intellectual property strategy and increase intellectual property protection.

The second is to increase input and focus on breakthroughs in key technologies and key products. Increase government investment to form a stable growth mechanism for integrated circuit R&D funds. Seriously organize the implementation of major national science and technology projects, strengthen the development and application of key integrated circuit products, and break through key core chips of key machine systems. Efforts will be made to develop the IC design industry and develop high-performance IC products. Expand the scale of integrated circuit manufacturing, and enhance the capabilities of advanced processes and features. Improve the level of package testing, and develop advanced packaging and testing technologies and products. Develop high-end special equipment, instruments and key materials to improve the industrial chain.

The third is to promote the integration of industrial resources and foster large enterprises with international competitiveness. To meet the needs of the new situation of industrial development and international market competition, overcome the fragmentation and duplication, promote the integration of industrial resources, and increase the degree of industrial concentration. Promote the government, banks, and enterprises to work together to concentrate resources and form a group of large enterprises that are in line with the development direction of major products and major processes. It is necessary to promote the integration of similar companies in the design, manufacturing, and packaging and testing industries, as well as to promote the integration of upstream and downstream enterprises, especially with the integration of complete machine companies. Encourage large-scale enterprise groups in various industries to participate in or integrate IC companies.

The fourth is to create an industrial ecological environment and promote the coordinated development of the upstream and downstream links. The implementation of a number of "one-stop" projects from integrated circuits, software, complete machines, systems, and applications will create a symbiotic and effective industrial ecological environment. Guided chip design companies and machine manufacturers to strengthen cooperation, to upgrade the whole machine to promote the effective research and development of chip design, chip design innovation to enhance the overall system competitiveness. Encourage the establishment of various integrated circuit technology innovation platforms and R&D alliances, improve public service systems, and improve public service capabilities.

Fifth, we will continue to promote the strategies of “bringing in” and “going out” to improve the quality of foreign investment utilization and the internationalization of the industry. We will continue to open up to the outside world, continue to optimize the environment, and vigorously attract overseas capital, technology, and talents. Attract multinational companies to build R&D centers, production centers, and operations centers in China. Encourage enterprises to expand international cooperation, integrate international resources for mergers and acquisitions, establish overseas R&D centers, and actively expand international markets.

Sixth, we must strengthen personnel training and actively introduce overseas talents. Promote the establishment of various forms of incentives and give full play to the enthusiasm and creativity of R&D personnel and management personnel. We will establish a sound IC talent training system, speed up the construction of microelectronics colleges and microelectronics training institutions, and increase the training of IC talents. Strengthen the construction of microelectronics in colleges and universities, introduce foreign teachers and high-quality resources, and strive to cultivate international, high-level, composite talents. We will implement relevant policies and actively introduce high-level overseas talents for integrated circuits.