Analysis of Development Situation of Major Local Semiconductor Industry Towns

DIGITIMES Research pointed out that in 2010, the output value of the semiconductor industry in the mainland exceeded RMB 150 billion, which is a 28% increase compared to 2009. The overall number of homeowners also exceeds 700. Among them, the output of the three major regions, namely the Bohai Rim, the Yangtze River Delta, and the Pearl River Delta, accounted for more than 95% of the total industry. Nearly 90% of the industry gathered here, and the continuous transformation of the electronic information industry led to the semiconductor industry in the Western Triangle Region. The industry is gradually taking shape.

The scale of semiconductor output in the Bohai Rim region accounts for 20% of the mainland, and more than 25% of semiconductor companies have gathered here. Among them, except for the chip design technology in the IC design industry, which is steadily leading the mainland, the region has not deployed a large amount of manufacturing capacity in the midstream or downstream. However, through close cooperation in the industry, it cuts into the fields of materials and equipment in the semiconductor industry chain. The layout is the most complete.

The proportion of semiconductor output value in the Yangtze River Delta region is close to 70%, and more than 40% of semiconductor companies are gathered. It is the most complete region for the development of the semiconductor industry in the mainland China, especially in IC manufacturing and IC packaging and testing. On the other hand, it is far ahead of other regions, and a sound semiconductor supply system has also driven the flourishing development of the local IC design industry.

Although nearly 20% of the semiconductor industry in the Pearl River Delta region has gathered, the lack of large-scale IC manufacturing and IC packaging and testing industry has caused the proportion of semiconductor output in the region to remain below 10%. The Pearl River Delta region is the largest consumer electronics and communications product in the mainland. In the production base, the IC design industry has become the mainstream of the local semiconductor industry. The R&D layout mostly uses the downstream electronic product application chips as the main axis.

The proportion of semiconductor output value in the West Triangle is still less than 5%, and the proportion of individual sub-industries in production is low. As the electronic information industry continues to shift from coastal areas to inland, IC manufacturers have become more active in the region, including SMIC took over the management of the Wuhan Plant and AVIC Avionics took over ProMOS Chongqing Yude Plant and Texas Instruments bought SMIC Chengdu Plant.

Looking at the development trend of the semiconductor industry in mainland China, the IC design industries in the Bohai Rim and Yangtze River Delta regions have closely cooperated with each other in the production industry and have played a major role in the settlement and profit operation. They have become two key areas in the IC design industry cluster in mainland China; the mainland IC manufacturing industry will be long. Mainly in the triangle, Bohai Rim will continue to expand, and the production capacity will be further expanded to the peripheral cities of various industrial clusters. The mainland IC packaging and testing industry will move to lower-cost regions based on operating cost considerations, unlike the Yangtze River Delta Group. Gathering advantages, the Pearl River Delta IC packaging and testing industry will gradually shift to the West Triangle area due to cost pressures.