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Integrated circuit industry: local integrated circuit support policies have been introduced


Since the country officially released the "Outline for the Advancement of the National Integrated Circuit Industry" (referred to as the "Outline") in June this year, various local governments have responded, and Beijing, Tianjin, Anhui, Shandong, Gansu, Sichuan and other places have successively issued local integrated circuit support policies. The establishment of investment funds and support of local leaders in mergers and acquisitions in the field of integrated circuits have become a consensus among all localities.


Strong support from government policies is the only way for the IC industry to catch up. As the most upstream of the electronics industry chain, the integrated circuit industry has very high technical barriers and also has a strong scale effect, especially in the wafer manufacturing process. Therefore, it is basically impossible for the wafer manufacturing sector to achieve catch-up through endogenous growth. For example, the annual capital expenditure of the global leader TSMC is nearly 10 billion US dollars, while the domestic leader SMIC’s revenue is only 2 billion US dollars.

The strength of the wafer manufacturing sector directly determines the overall strength of the entire integrated circuit industry chain. From the historical experience of the rapid rise of the integrated circuit industry in Taiwan and South Korea, we can see that in the two or three decades before catching up with the world's leading level, we have continued to rely on the government's continuous and vigorous support. The way.

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