On May 15, the U.S. Department of Commerce imposed a ban on Huawei, setting up numerous obstacles to Huawei’s international trade, and the chip field is undoubtedly the first to bear the brunt. The development of chips is not the goal of a company, but a strong and important support for a country. In recent years, China has spent trillions of dollars to increase investment in chips in order to improve the local industrial chain. Although the ban has brought losses to many domestic companies, the ban cannot stop my country’s determination and progress in chip research and development. Instead, it objectively forces domestic chips to go online, and related technologies can be developed. a driving force.
Human civilization is inseparable from the exchange of information, and information generates value in the process of transmission and sharing. Entering the 21st century, due to the advancement of microelectronics technology, liquid crystal and plasma flat panel displays have entered the stage, realizing the perception, transmission and display of images in “solid”, and microelectronics technology provides technical support for mobile devices. The proliferation of mobile devices and the rapid development of information technology are inseparable from the illustrious contributions of integrated circuits. Integrated circuits use a specific processing technology to integrate active and passive devices such as transistors, capacitors, and resistors required in a circuit on a small semiconductor wafer and install them in a tube shell according to a certain circuit interconnection. An integrated circuit is a type of semiconductor that is a microscopic structure capable of performing a specific circuit or system function.
Business Models for Semiconductor Design
After years of development, the integrated circuit industry has changed from the original single IDM model to the coexistence of the IDM model and the Fabless model. The IDM model is a vertically integrated manufacturing model, which is currently only adopted by a few large companies, such as Intel, Samsung, Texas Instruments, and STMicroelectronics, due to the need for high-standard technology and strong financial support. The Fabless model is the integrated circuit design model of the waferless production line, which means that the company only engages in the design and sales of integrated circuits, and the remaining links are entrusted to professional wafer foundries and packaging and testing factories to complete.
Integrated circuit industry policy support is strong
The integrated circuit industry is a high-tech industry and a strategic emerging industry encouraged by the state. With the strong support of national policies, the central government and various local provinces and cities have issued various policies to support the integrated circuit industry. March 2018 “Notice on Issues Concerning Enterprise Income Tax Policies for Integrated Circuit Manufacturers”, July 2018 “Three-Year Action Plan for Expanding and Upgrading Information Consumption (2018-2020)”, May 2019 “On Integrated Circuit Design and Software Industry Enterprise Income Tax Policy Announcement.
5G drives a new round of downstream applications of integrated circuits
Compared with 4G communication, 5G communication has the characteristics of faster user experience rate, lower delay, and higher device connection density, which perfectly meets the requirements of downstream applications in the integrated circuit industry, including automotive electronics. , industrial control, consumer electronics, network equipment, mobile communications, etc., these fields support the steady development of the integrated circuit industry. The emergence of PCs and smartphones led the first two major developments in the history of semiconductors, respectively. With the advent of the 5G era, the Internet of Everything, the explosive growth of data, and the rapid development of emerging industries represented by artificial intelligence, cloud computing, and smart cars. The number of installed IoT devices in the world is expected to reach 75.44 billion units. It is estimated that China’s automotive electronics market will exceed 100 billion yuan in 2020. The continuous emergence of new applications provides chip designers with rare development opportunities, driving huge demand for chip production, which is expected to become an integrated A new engine for the development of the circuit industry.
“De-Americanization” and “Independent Research and Control” Provide New Opportunities for the Domestic Semiconductor Industry
According to WSTS statistics, the growth rate of my country’s semiconductor market is higher than the year-on-year growth rate of the global semiconductor market, showing a rapid growth trend, and China’s semiconductor sales in 2018 were 157.8 billion US dollars, a year-on-year increase of 20.08%, significantly higher than the global growth rate, accounting for 33.86% of global semiconductor sales. However, in the case of an optimistic overall development, what needs to be seen is that my country’s semiconductor self-sufficiency rate is low, about 15.4%. For my country’s huge demand, the semiconductor supply capacity is extremely insufficient. It is estimated that my country’s semiconductor self-sufficiency rate will reach 23% in 2023. There is a broad space for development in the domestic semiconductor market. The development of the semiconductor market will drive the expansion of the integrated circuit market.
The market share of domestic IC design is increasing day by day
my country’s integrated circuit market maintains rapid development, and the market share of integrated circuit design continues to increase. my country’s integrated circuit market has risen rapidly from 100.6 billion yuan in 2008 to 653.2 billion yuan in 2018, with a compound annual growth rate of 20.55%. Among them, the output value of integrated circuit design increased from 23.5 billion yuan in 2008 to 251.9 billion yuan in 2018, with a compound annual growth rate of 26.77%, higher than the growth rate of the integrated circuit industry. In the domestic integrated circuit industry, the market share of the chip design industry is getting higher and higher, rising steadily from 24.34% in 2009 to 38.57% in 2018.
There are many listed companies in my country’s A-shares that are semiconductor design companies, including both Fabless companies and IDM companies, such as memory chip company Zhaoyi Innovation, optical fingerprint chip company Goodix Technology, RF front-end company Zhuosheng Micro, Analog Devices IC company Shengbang shares, GPU design company Jingjiawei, etc.
Zhaoyi Innovation is one of the leading flash memory chip design companies in China. It was established in 2012. Its main business is the research and development, technical support and sales of flash memory chips and their derivatives, microcontroller products and sensor modules. The company’s products are widely used in mobile phones, tablets and other handheld mobile terminals, consumer electronic products, Internet of Things terminals, personal computers and peripherals, as well as communication equipment, medical equipment, office equipment, automotive electronics and industrial control equipment and other fields.