In recent years, with the market pull and policy support, China's integrated circuit industry has developed rapidly and its overall strength has been significantly improved. The gap between integrated circuit design and manufacturing capabilities and the international advanced level has continuously narrowed, and packaging and testing technology has gradually approached the international advanced level. Some key equipment and The use of domestic and foreign production lines for materials has led to the emergence of a number of key enterprises with certain international competitiveness. The effect of industrial agglomeration has become increasingly obvious.

        However, the integrated circuit industry still faces outstanding problems such as weak continuous innovation capability, disconnection of industrial development from market demand, lack of synergy in various links of the industrial chain, and imperfect policy environment that adapts to industrial characteristics. The level of industrial development is still higher than that of advanced countries (regions). There is a big gap, and IC products rely heavily on imports. It is difficult to form strong support for building national industry core competitiveness and ensuring information security. In 2016, the output value of China's integrated circuits was less than 7% of the world's total, while the market demand was close to one-third of the global market. IC imports remained as high as US$27.1 billion, exports amounted to US$61.38 billion, and the trade deficit was US$165.7 billion.

        At present, the global integrated circuit industry is entering a major period of adjustment and reform. On the one hand, the global market structure has been adjusted rapidly, the scale of investment has been rapidly increasing, and market share has been accelerating toward the dominant enterprises. On the other hand, mobile smart terminals and chips have seen explosive growth, and new developments such as cloud computing, Internet of Things, and big data have developed rapidly. New trends have emerged in the evolution of integrated circuit technologies; China has the largest integrated circuit market in the world and market demand will continue Maintain rapid growth. Under the new situation, the development of China's integrated circuit industry is facing both huge challenges and rare opportunities. Therefore, the state and local governments continue to issue relevant policies to support the development of integrated circuits and accelerate the pace of catching up with advanced countries (regions).

Exhibit 1: Summary of Key Policies for China's IC Industry (1)

        In order to promote the accelerated development of the integrated circuit industry, the State Council has issued the “Outline for Promoting the Development of the National IC Industry”, aiming at giving full play to the advantages of the domestic market, creating a favorable environment for development, stimulating the vitality and creativity of enterprises, and striving to realize leap-forward development of the integrated circuit industry. . This program is also one of the most important policies in China's integrated circuit industry in recent years. The "Outline" clearly stated that by 2020, the gap between the integrated circuit industry and the international advanced level will gradually narrow, and the average annual growth rate of the industry-wide sales revenue will exceed 20%. The sustainable development capacity of enterprises will be greatly enhanced; by 2030, ITW switch IC industry The major links in the chain have reached the international advanced level, and a group of companies have entered the international first echelon to realize leapfrog development.

Exhibit 3: Interpretation of the "National Outline for the Development of Integrated Circuit Industry"

Up to 2018, the integrated policies and interpretation of the latest integrated circuits in various provinces and cities

        With the promulgation and implementation of the "National Outline for the Development of the Integrated Circuit Industry", the enthusiasm for the development of integrated circuits in various regions has increased and many encouraging policies have been introduced. For example, Shanghai, Nanjing, Anhui, Fujian, Chongqing, and Chengdu have introduced integrated circuit industries one after another. Development fund. From the perspective of corporate strength, the strength of China's integrated circuit design companies continues to increase.

Chart 4: Scale of Local Government Integrated Circuit Industry Funds in 2016 (100 million yuan)

        In response to the country's policy call, various localities have also formulated corresponding integrated circuit development policies for the actual situation in the region. For example, Zhejiang Province issued the “Opinions on Further Accelerating the Development of the Integrated Circuit Industry” of the General Office of the People's Government of Zhejiang Province in order to speed up the development of integrated circuits. The opinion clearly stated that by 2020, the revenue of integrated circuits and related industries in the province will exceed 100 billion yuan. yuan.

Exhibit 6: Summary of IC policies for major provinces and cities (1)

Exhibit 10: Summary of related policies for the IC industry in major provinces and cities (V)