China is striving to substantially improve the self-sufficiency rate for ICs in the nation. With strong government support, manufacturing capacities at China-based IC foundries and backend firms are set to expand significantly during the period of the country's 13th five-year plan, according to Digitimes Research.
China-based suppliers of processors, FPGA chips, IoT and information security related chips, and memory chips are also being supported by local governments according to the central government's "Internet Plus" and "Made in China 2025" initiatives, said Digitimes Research.
During China's 13th FYP period, China aims to increase the number of 4.5/5G base stations locally while expanding the fiber backbone network and pushing data center expansion for a high rate of network Infrastructure penetration, Digitimes Research indicated. Demand for related chips such as server processors and memory ICs made locally will be robust.
China's central government has also shifted from direct financial support to subsidies through government-led investment funds during the country's 13th FYP period, Digitimes Research noted. The investment funds will provide local companies financial support to foster the development of local IC industry sectors.