Semiconductors in China: Brave new world or same old story?
China now accounts for about 45 percent of the worldwide demand for chips (used both in China and for exports), but more than 90 percent of its consumption relies on imported integrated circuits. For many years now China has promised and threatened more than it ever delivered in semiconductors, and large non-Chinese, global players still dominate all parts of the value chain, but all that could be about to seriously change. In June 2014 the government announced its new framework and policy towards ensuring that domestic capability gets built with less dependance upon foreign suppliers, and this time their efforts could work. In which case, watch out Western, Japanese and Korean suppliers. In particular, McKinsey identify 3 main trends to take notice of: Pressure for localization will increase; More partnership opportunities will arise for second-tier players and as fewer companies can afford the move to 20nm, paradoxically Chinese vendors have more of an opportunity to play catch up. Follow this link to dwnload the article
Keywords: Semiconductors, China, SMIC,Shanghai Huali Microelectronics Corporation,XMC,Guideline of the National IC Industry Development Promotion