Increased efforts to support the development of integrated circuits

"National Integrated Circuit Industry Development Promotion Outline" was officially announced

In order to promote the accelerated development of the integrated circuit industry, the Ministry of Industry and Information Technology, the Development and Reform Commission, the Ministry of Science and Technology, and the Ministry of Finance have compiled the “Outline for Promoting the Development of the National IC Industry”, which was formally approved by the State Council for release.

In 2000 and 2011, a number of policies to encourage the development of the software industry and the integrated circuit industry and several policies to further encourage the development of the software industry and the integrated circuit industry were issued, namely, No. 18 and No. 4 documents. Judging from the contents of the previous documents, they are all together with the software industry, and are mainly aimed at the integrated circuit design industry. But this time the "Outline" highlights the IC industry alone, and it covers all major aspects of the IC industry. It can be seen that the importance of the integrated circuit industry in the IT industry development and information security will become increasingly prominent.

China's IC is the largest in scale, and the basic needs are huge, but the core technology and links are insufficient.

China has the largest and fastest growing integrated circuit market in the world. In 2013, the scale reached 916.6 billion yuan, accounting for 50% of the global market share.

At the same time, China’s information technology industry ranks first in the world for many years. In 2013, the industry scale reached 12.4 trillion yuan, and produced 1.46 billion mobile phones, 340 million computers and 130 million color TV sets. Moreover, industrial communications data show that in the first quarter, China’s information consumption reached 691 billion yuan, an increase of 22.3%, a strong increase.

Therefore, the huge domestic IT industry scale and high-speed development of information consumption are the basis for the development and growth of the IC industry.

This year, the IC design industry has grown significantly faster than last year. From January to May, the company realized revenue of RMB 40.5 billion, a year-on-year increase of 22.3%, and the growth rate was higher than that in January-April and the same period of last year by 2.4 and 10.4 percentage points. With the transformation of China's economic development mode and the deep integration of industrialization and informatization, the demand for integrated circuits will increase substantially. It is estimated that by 2015, the market scale will reach 1.2 trillion yuan, and the integrated circuit market has great potential.

However, China's integrated circuit industry started late, and there are outstanding problems such as difficulty in financing for chip manufacturing companies, weak continuous innovation capability, disconnection between industrial development and market demand, lack of synergy in various links of the industrial chain, and imperfect policy environment that adapts to industrial characteristics. Support the needs of the national economy and social development.

According to statistics, the import scale of integrated circuits in China was as high as 231.3 billion U.S. dollars in 2013, and it still needs to rely heavily on foreign imports.

Due to the lack of core links in the value chain with integrated circuits and software, the industry's average profit margin is only 4.5%, which is lower than the industry average of 1.6 percentage points. This also shows that although China’s IT industry ranks first in the world, its industrial division is mainly based on complete machine processing, and its core components depend on imports, such as computer CPUs and high-end mobile phone chips.

This lack of basic scale and actual links also shows the urgency and huge space for the development of the domestic integrated circuit industry.

National policy intensifies efforts to support IC industry development

The integrated circuit industry is the core of the information technology industry, and its technical level and development status are one of the indicators to measure the overall national strength of a country.

In order to speed up the development of the integrated circuit industry, China has formulated the "Important to promote." The outline proposes that by 2015 China will establish and improve the mechanism innovation of the integrated circuit industry development system and establish a financing platform and policy environment that suits the industrial development law. It also proposed that some key areas of integrated circuit design technologies, such as mobile smart terminals and network communications, are close to the international first-class level. In addition, the state gives strong support in many fields, such as strengthening the establishment of the leading group for the development of the integrated circuit industry, coordinating and coordinating industrial development work, setting up industrial investment funds, increasing financial support, and stimulating the vitality and creativity of the enterprise to develop the integrated circuit industry. Create a good market environment.

Investment Advice:

The information technology industry has a very important strategic significance. In the future, our government will inevitably increase policy support. In fact, not only in the integrated circuit industry, but also in other IT industries such as the telecommunications industry and the mobile Internet industry, China is continuously releasing adjustment policies, actively promoting market allocation of resources, and improving its core competitiveness. According to the Ministry of Industry and Information Technology and the country’s policy developments, the integrated circuit industry has very bright prospects for development.

At the same time, China's current integrated circuit industry, the lack of core technology leads to a large number of dependence on imports, there are significant differences with the international advanced level, the company's ability to continue innovation is weak, plus the development of industrial development and market demand out of line, so there is a certain risk.