Digitimes Research: China to become large predator for IC businesses during 2016-2020

Nobunaga Chai, DIGITIMES Research, Taipei 0

While related policies and regulations chartered to the development of semiconductor industry in China, as defined in the nation's 13th Five-Year Plan for the period from 2016 to 2020, remain unclear, it is not doubt that China is likely to become one of the major predators for IC businesses during the period, according to Digitimes Research.

In addition to setting a national investment fund to foster the development of its semiconductor industry under the 13th Five-Year Plan, the China government also aims to generate a production value of CNY870 billion (US$139.78 billion) for the semiconductor industry by 2020.

To raise the self-sufficiency rates and control manufacturing capability for key parts and components, leading China-based brands, including Huawei, Datang Telecom, ZTE and Haier, have all committed investment in IC design houses.

Integrations of these IC design houses and IC manufacturing companies such as Semiconductor Manufacturing International Corporation (SMIC), Huali Microelectronics Corporation (HLMC) and Changziang Electronics could result in the formation of branded IDMs or virtual IDMs.

The formation of large-scale IDMs is also one of the major tasks of China's new Five-Year Plan that will fulfill the supply chain of its semiconductor industry.

Under China's new development plan, Taiwan-based IC design houses and IC backend service providers are likely to become the preys to be hunted by China-based IC companies, DigitimesResearch commented.

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