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Current Status of the Integrated Circuit Industry in China

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Current Status of the Integrated Circuit Industry in China J. Microelectron. Manuf. 2, 19020205 (2019) doi: 10.33079/jomm.19020205 Editorial Introduction: China's IC industry has been flourishing in recent years, huge market demand together with government investments are the major driving forces for this development. The status and development momentum of the Chinese IC industry also attracted wide interest and attention of international counterparts. A group of domestic IC experts are invited by the JoMM to write a series of articles about China's IC industry, including the history, current status, development, and related government policies. Information in these articles is all from public data from recent years. The purpose of these articles is to enhance mutual understanding between the Chinese domestic IC industry and international IC ecosystem. The following article is the third one of this series, the status quo of China's IC industry. The IC industry chain is very long including design, manufacturing, special equipment, materials, packaging and testing. The article series are arranged in accordance with this scope. Current Status of the Integrated Circuit Industry in China ― IC Manufacturing Industry 1. Introduction other hand, many IC design enterprises from abroad have poured into the Chinese market, among which The integrated circuit is a product featured with there are plenty of well-known design companies with fast revolution and high technologies. Speaking of the strong capital and technical strength, which further current international market structure, IC companies intensified the competition in Chinese market. are struggling with intellectual property dominance, As the foundation and core of the information the key IC industrial product global organizations industry, the integrated circuit is the basic, leading and presents the characteristics of multinational monopoly. strategic industry of the whole world of the national Integrated circuit multinational companies’ sales, economy and the society. In recent years, China's manufacturing and R & D strategies are in the electronic industry has continued to grow at a high direction of globalization. speed, and the integrated circuit industry has As the largest integrated circuit market in the experienced a period of rapid development. world, the self-sufficient ability of integrated circuits in China is low, and the pain of lacking core needs to 2. A Survey of Domestic Integrated be addressed urgently. With the rapid development of Circuit Manufacturers automotive electronics, smart phones and other cutting-edge applications, the domestic integrated The followings are brief review of the major circuit market has expanded rapidly. leading manufacturers that representing the At present, integrated circuits are still among the development of integrated circuits in China: cores of communication, multimedia and computer 2.1．Semiconductor Manufacturing International technology. High added value, technology intensive, Corporation (SMIC) strong competitiveness and huge output value are the advantages of integrated circuit industry. Integrated Semiconductor Manufacturing International circuit industry has great potential and vitality, and it Corporation (''SMIC", NYSE code: SMI, HK Ex is a well-deserved high-growth industry. Therefore, stock code: 981), SMIC was established in 2000. Its we must vigorously develop the integrated circuit headquarters is located in Shanghai, China. It is one industry, so as to promote the progress of economic of the leading IC chip contract manufacturers in the construction in China and accelerate the process of world, and it is also the largest and most advanced information industrialization. integrated circuit chip manufacturing enterprise in The integrated circuit design industry in China is mainland China. Its main business is to manufacture highly market-oriented. On the one hand, there are integrated circuit chips for customers according to the many domestic enterprises engaged in integrated integrated circuit design of the customer or the third circuit design, and the competition is fierce; on the party. The founder of the company is Dr. Rujing 1 Current Status of the Integrated Circuit Industry in China ― IC Manufacturing Industry Zhang who used to work for Taiwan Semiconductor 2.2．Shanghai Huahong (Group) Co., Ltd. Manufacturing Company（TSMC）. At present, the vast majority of the company's executives are Shanghai Huahong (Group) Co., Ltd. was Taiwanese. It is one of the world's leading integrated established in 1996, the company is the result and circuit wafer contract manufacturers, SMIC provides carrier the national "909" project. 0.35μm~28nm wafer foundry and technical services While constructing and operating the first deep to global customers. submicron ultra-large-scale 8-inch integrated circuit SMIC has a 300mm chip factory and three production line in China, Huahong Group gradually 200mm chip factories in Shanghai. There are two becomes the core of chip manufacturing business. It 300mm chip factories in Beijing, a 200mm chip has gradually become an integrated circuit industry factory in Tianjin, a 200mm chip factory in Shenzhen group with the common development of integrated and a packaging and testing plant in Chengdu. SMIC circuit system integration and application services, also provides customer service and marketing offices chip manufacturing process research and in the United States, Europe and Japan, as well as development, chip design, electronic component trade, representative offices in Hong Kong. In addition, venture capital at home and abroad and other business SMIC International manages a 200mm chip factory platforms. on behalf of Chengdu Cension Semiconductor With the mission of "building the '909' project Manufacturing Corporation Ltd., and also manages a and promoting the development of the information 300mm chip factory on behalf of Wuhan Xinxin industry", Huahong Group is committed to playing Semiconductor Manufacturing Co., Ltd. (XMC). the main role of the state-owned industrial group in Semiconductor manufacturing is a capital the fields of 8-inch characteristic process chip expenditure industry, the lack of capital expenditure manufacturing, integrated circuit process research and capacity can easily lead to the company gradually fall development public platform, AFC and RFID system behind the advanced process competitors. The application, integrated circuit design service and so on. company's R & D investment has continued to grow, Huahong Group is a senior sponsor of World Expo with R & D spending of $318 million in 2016, R & D 2010 in Shanghai, successfully realizing the largest investment accounting for 10.92 percent of revenue, application of RFID technology in the field of tickets and R & D investment of $219 million in 2017, in the world, and has been well received by all parties. accounting for 14.18 percent of revenue. SMIC At present, Huahong Group is actively promoting the continues to increase R & D investment, 28nm "909" project upgrade-12-inch integrated circuit process will gradually release, meanwhile it has production line project construction. started the development of 14nm process. SMIC is After years of construction and development, expected to start trial production in 2019, and the Huahong Group has not only promoted the technological gap with international factories will development of integrated circuit industry in China, gradually narrow. but also made remarkable achievements in chip In the whole production process and the whole manufacturing, chip design, system and application service from R & D to mass production, SMIC services, process research and development, integrates a comprehensive quality and control system. electronic component trade and venture capital In addition, its diverse laboratories and tools can be (including overseas investment). It offers contract used for chemical and raw material analysis, product (foundry) technology, product process, chip design, failure analysis, yield improvement, reliability AFC system and other products and services to the inspection and monitoring, and equipment calibration. society and users. In order to ensure the consistency of product 2.3．China Resources Microelectronics Limited quality and the customer flexibility of different (“CR Micro”) customers, SMIC adopts the concept of "one big factory", that is, in all SMIC factories, each chip China Resources Microelectronics Limited factory optimizes the equipment and process (“CR Micro”) is a high-tech enterprise belonging to parameters in order to meet the standard and yield China Resources (Holdings) Co., Ltd. (CR) which requirement of testing (WAT) for the same wafer is engaged in investment, development and acceptance. operations management of microelectronics business, J. Microelectron. Manuf. 2, 19020205 (2019) 2 Current Status of the Integrated Circuit Industry in China ― IC Manufacturing Industry and it is also one of the largest and most influential the application range covers memory, consumer comprehensive microelectronics enterprises in China, products, mobile devices, SOC and system IC and been included in the top 100 electronic information other fields. The company will use the world's most enterprises continuously by the Ministry of Industry advanced technology to produce DRAM and NAND and Information Technology since 2004. flash memory. CR Micro takes it as its own responsibility to The project is the only industrial project revitalize the national microelectronics industry and approved by the State Council in Wuxi.
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