China is set to improve the self-sufficiency rate for ICs in the nation to 40% in 2020, and could even exceed the target ratio, according to Digitimes Research.
The "Made in China 2025" published by China's State Council in May 2015 clearly outlines that the nation is aiming to raise its self-sufficiency rate for ICs to 40% in 2020, and 70% in 2025.
Digitimes Research forecasts that China's 12-inch pure-play foundries will see their combined production capacity grow substantially by the end of 2018. A leap in 12-inch wafer capacity could help the nation ramp up the self-sufficiency rate for production of chips to more than 40% by 2025.
Semiconductor Manufacturing International (SMIC) and the Beijing municipal government have set an example of how China's local governments and IC companies can build a relationship with each other. The pair in May 2012 announced plans to establish jointly a 12-inch fab in Beijing. In June 2013, Northern SMIC Semiconductor Manufacturing (Beijing) - a joint venture between SMIC, state-owned Beijing Industrial Development Investment Management and Zhongguancun Development Group - was formed. Northern SMIC in February 2015 successfully attracted investment from China's National Semiconductor Industry Investment Fund (known as the Big Fund).
China's local governments including the governments of Xiamen, Hefei, Nanjing and Chongqing all intend to follow suit by partnering with foundries to build their local IC industry clusters. In addition, the governments of Dalian and Hubei are both pouring efforts into the establishment of a cluster of 3D NAND flash sector.
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