Taipei, Friday, August 1, 2014 15:55 (GMT+8)
mostly cloudy
Taipei
36°C
Expectations for China's semiconductor industry during the 12th Five Year Plan
Nobunaga Chai, DIGITIMES Research, Taipei [Wednesday 3 August 2011]
Registration required (free) to purchase. Please sign in if you wish to continue.
During the 12th FYP period from 2011-2015, China's semiconductor industry policy will shift away from the pursuit of capacity and output value growth toward a focus on improving R&D capabilities and firms' global competitiveness. A policy of direct government investment will also be replaced by an emphasis on market mechanisms. This DIGITIMES Research Special Report provides comprehensive analyses of the government policies and industry dynamics that will shape China's related semiconductor industries over the next five years.
Abstract
Forecast for the number of China IC design firms during the 12th FYP period (number of firms)

During the 10th and 11th Five Year Plan (FYP) periods from 2001-2010, the China's government listed the semiconductor industry as one of the key industries to be supported.

Spurred on by State Council Rule 18 (2000), major China-based foundry firms such as SMIC, Hejian, Grace, and TSMC's Songjiang operations were founded during the 10th FYP period and began to rapidly expand capacity. The result was that output value for China's merchant foundry industry grew from CNY3.6 billion in 2001 to CNY22.1 billion in 2010, representing an annual compound growth rate of 21%. With this, China's IC manufacturing firms truly took off and entered a period of growth.

While the output value of China's semiconductor industry grew significantly during the 10th and 11th FYP periods, the industry's overall level of competitiveness remained weak. During the 12th FYP period from 2011-2015, China's semiconductor industry policy will shift the emphasis for development away from the pursuit of capacity and output value growth, towards a focus on improving R&D capabilities for advanced technology and advanced capacity. The government's earlier method of pouring funds directly into the industry will also be replaced by an emphasis on strengthening the operations of market mechanisms, in order to foster a group of semiconductor firms with global market share and the capacity for technological innovation.

China's policies on semiconductor development during the 12th FYP period include the Outline of the 12th Five Year Plan for National Economic and Social Development, State Council Rule 32 (2010), the six major measures to develop the software and semiconductor industries, and State Council Rule 4 (2011).

Besides affirming the semiconductor industry as one link in efforts to build infrastructure for next generation IT within the strategy for seven new major strategic industries, these plans also confirmed that semiconductor firms that met the appropriate conditions would be eligible to receive government support; moreover, the government would work to strengthen the industry's capacity for independent technological innovation through a raft of measures to reform tax incentive policy, as well as to improve the function of financial markets.

This report also provides forecasts and analysis regarding the prospects for merchant foundry firms such as SMIC, Huahong NEC, Grace, Huali Microelectronics (HLMC), Jiangsu Changjiang (JCET), Nantong Fujitsu Microelectronics (NFME), Spreadtrum and HiSense, as well as for leading package testing and IC design firms, during the 12th FYP period.

The report concludes with projections and analyses on the prospects for the IC manufacturing and IC design industries in China under the influence of the new semiconductor industry polices of the 12th FYP during the 2011-2015 period.

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • Russia market: Smartphone competition heating up

    Mobile + telecom | 10min ago

  • Solartech mulls shift of solar cell capacity abroad in response to US anti-dumping taxation

    Green energy | 14min ago

  • PCB/LCD equipment supplier Asia Neo Tech to debut on Taiwan OTC market

    Bits + chips | 48min ago

  • UMC to ramp 28nm wafer capacity

    Bits + chips | 57min ago

  • Young Optics 1H14 net profit down over 60% on year

    IT + CE - Stockwatch | 1h 18min ago

  • Unimicron net profits up significantly in 2Q14

    Bits + chips | 2h 2min ago

  • Silicon Motion looks to 15-20% sequential revenue growth in 3Q14

    Bits + chips | 4h 22min ago

  • Radiant Opto-Electronics nets NT$3.07 per share for 1H14

    Displays | 4h 24min ago

  • HTC conservative about 3Q14

    Mobile + telecom | 4h 55min ago

  • Taiwan 2Q14 economic growth rate upward adjusted to 3.84%, says DGBAS

    Bits + chips | 5h 11min ago

  • Taiwan IC suppliers to benefit as Samsung steps up purchases of IC parts

    Bits + chips | Jul 31, 22:08

  • MediaTek hikes 4G smartphone solution shipment target for 2014

    Bits + chips | Jul 31, 22:07

  • Digitimes Research: Promotion of HEMS appliances in Japan faces problems

    Green energy | Jul 31, 20:14

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

China smartphone AP shipments – 2Q 2014

CHINA SMARTPHONE AP | Jul 31, 18:17

The LTE market does not perform as expected in the China market while the TD-SCDMA market declines. Smartphone APs experience quarterly growth of 13.2% in China In the second quarter of 2014, with MediaTek's 3G products achieving nearly a 50% market share. In...

Taiwan handsets – 2Q 2014

TAIWAN ICT | Jul 30, 09:17

HTC's launch of its new smartphone models shot up both its own shipments and the overall shipments from Taiwan's handset sector in the second quarter. Although own-brand shipments were strong, ODM shipments were sluggish.

Taiwan digital cameras – 2Q 2014

TAIWAN ICT | Jul 30, 09:15

Taiwan makers saw a rare rise in their DSC shipments in the second quarter of 2014, thanks to strong orders from clients who were launching new models for the spring season. While their shipments stand little chance of returning to levels seen in the pre-smartphone...

DIGITIMES Translation Services
Media news email alerts
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.