Technological backwardness restricts the scale of domestic integrated circuits

According to customs statistics, from January to April this year, the value of imported ICs in Guangdong Province was US$ 21.64 billion, which was an increase of 26% over the same period of last year (the same below). The main features of its imports are as follows:

First, the volume of imports remained stable, with a slight increase in April. Since 2010, the import of integrated circuits in Guangdong Province has remained stable. In 16 months, 13 months' worth of imports exceeded 5 billion U.S. dollars. In April of this year, imports were 5.79 billion U.S. dollars, an increase of 12.9% year-on-year.

Second, the import of processing trade exceeded 50%, and the import of special customs supervision areas increased rapidly. From January to April this year, Guangdong Province imported 11.9 billion U.S. dollars of integrated circuits by processing trade, an increase of 19.4%, accounting for 55.1% of the total integrated circuit import value of Guangdong Province in the same period; importing 5.32 billion U.S. dollars by general trade, increasing 19.3%, accounting for 24.6%; Customs special supervision areas imported 3.44 billion US dollars, an increase of 55.7%.

Third, Taiwan Province, ASEAN, and South Korea are the top three sources of imports. From January to April this year, Guangdong Province imported 5.76 billion U.S. dollars of integrated circuits from Taiwan, an increase of 21.2%, accounting for 26.6%; imported 4.64 billion U.S. dollars from ASEAN, an increase of 21.2%, accounting for 21.4%; imported 4.32 billion U.S. dollars from South Korea, an increase of 34.9 percent. %, accounting for 20%.

Fourth, foreign-funded enterprises are the main importers, and private enterprises have seen rapid growth in imports. From January to April this year, foreign-invested enterprises in Guangdong Province imported 13.84 billion U.S. dollars of integrated circuits, an increase of 22.8%, accounting for 63.9%; private enterprises imported 5.03 billion U.S. dollars, up 67.3%, accounting for 23.2%; state-owned enterprises imported 2.17 billion U.S. dollars, down 3.4. %, accounting for 10%.

Although China's integrated circuit industry has achieved certain development, the current domestic industry still faces many key points that need to be broken through:

First, industrial development requires higher hardware and software, and domestic industrial technology still lags behind. The integrated circuit industry has the characteristics of huge initial investment and long payback period. Integrated circuit design requires expensive hardware and software equipment. Usually, investment in an IC production line requires hundreds of millions of dollars. However, at present, the core technology of the international integrated circuit is still in the hands of transnational IT giants. At the same time, due to technological limitations in developed countries, the level of domestic industry is still lagging far behind the international advanced level. The production equipment of IC companies still relies heavily on imports; the Chinese enterprises are on high-end products. The production capacity is still lacking. Once the mainstream production technology of the products is replaced, it will cause a great blow to the enterprises with weak domestic R&D capabilities.

Second, the industry is still dominated by OEM production, lacking a complete industrial chain. As the core technology is controlled by people, currently China's integrated circuit industry is mainly concentrated in the middle and lower reaches of the industrial chain. Its design capability is relatively weak, and most of it is manufactured for foreign manufacturers. Imports and exports are still dominated by the mode of “foreign investment + processing trade”. A large number of products need to be exported to overseas for redesign and processing. The added value of products is low, and the company's profit margins are narrow, and a complete industrial chain integrating R&D, design, manufacture, and sales has not yet been formed, which restricts the long-term development space of the industry.

Third, the operating companies are more dispersed and SMEs lack policy support. At present, integrated circuit design companies are basically in a “scattered, chaotic, and small” situation. SMEs lack sufficient funds to invest in early-stage R&D, and high licensing fees make them prohibitive. At the same time, national policies and financial support are mainly directed at large companies. The plight of SMEs has become increasingly prominent, and it has been caught in a vicious circle of unsustainable funding and technology.

Suggestions for this: First, strengthen policy support for the development of the integrated circuit industry, provide necessary financial support for independent innovation and R&D, increase joint efforts in corporate information and technology, and introduce general policies for the characteristics of more SMEs. The second is to promote the development of the IC industry toward the cluster, rely on the IC industry base, highlight the comparative advantages and industrial characteristics of different regions, improve the industrial supporting system, and establish a complete industrial chain with independent innovation capabilities; IC companies conduct mergers and acquisitions, reorganizations, and accelerate the cultivation of large local companies with comprehensive technical strength and international competitiveness, which can drive industrial development, and have independent intellectual property rights, and create the core pillars and independent brands of the industry.