The Most Useful Strategic Layout of China IC Manufacturing

Although the international market appeared substantially fluctuation, this year China’s integrated circuit industry is still presenting growth trend. According to CCID Consulting data released, in the first half of 2011, the total output of China’s integrated circuit is 40.56 billion units, up 25.2%.The industry sales income is 79.326 billion Yuan, a year-on-year increase of 19.1%. Chip manufacturing, though impacted by Japanese earthquake, and the growth fell after rise, the sales income still maintained a fast growth, scale reached 24.31 billion Yuan, a year-on-year increase of 16.2%.

For China’s integrated circuit chip manufacturers, they should carry on itself pressure of the high risk investment development, still they need to face formidable semiconductor giant competition, and its development faces a double challenge. On the one hand is its competition ability weak. The domestic enterprise scale is small, lack of advanced technology and high-end technology. On the other hand, IC design enterprise scale is small and scattered; it was not enough to support Chinese chip manufacturing enterprise of further development. IC manufacturing enterprises need to develop in three aspects in the future.

First, seeking the application market “new developing points”, the enterprises should transfer from technology catching up to technology innovation, developing technology characteristics, looking for differentiation competitive advantage. In the same application market, only follow Moore’s law, IC manufacturing ability can keep close to the advanced international level, but this development course to IC manufacturing, they should pay considerable price. Therefore, we should seek different development in the characteristic field, starting from power semiconductor, photoelectric semiconductor, micro machinery manufacturing, and etc emerging market area, developing technology innovation and technology characteristics, accumulating and enhancing the strength of enterprises.

Second, rely on the local advantages and focus on the service innovation. For IC manufacturing in China, it is located in the world’s largest electronics manufacturing base, so they have the advantageous market advantage. Chinese IC manufacturing should fully draw the support from the domestic congenital dominance, relying on the keen market, flexible sales operation mechanism, communication advantage, talent advantage and policy advantage, more effective and more fully understand the customers to have service innovation and provide more specific services. At the same time, China’s IC manufacturing should break the concept of traditional wafer, transform from the pure manufacturing business into all-around, one-stop service manufacturing mode, helping IC design company, especially emerging IC design company rapid product development and promptly to the market, thus to realize the win-win situation with their own customers.

Third, form strategic relationships with every industrial chain link, and achieve common growth. The semiconductor industry development should form a new type of cooperation, the domestic manufacturing enterprise should join hands with design enterprise, packaging and test enterprise, IP/design services, vendors and terminal dealer to form strategic business partner, so as to realize the industrial chain of each section of seamless cooperation, thus to form integrated effect, achieving the win-win.