China has been solidifying its semiconductor industry policy objectives through the release of the "National IC Industry Development Guidelines" in June 2014 and "Made in China 2025" in June 2015, with one key financial support program being the National IC Industry Investment Fund (Big Fund), which will be used to help finance production capacity in advanced process technologies, while also giving China IC vendors the opportunity to acquire global vendors. This report analyzes how the Big Fund can affect the China and global semiconductor industry moving forward.
Chart 1: China's IC output value, and IC design share, 2010-2015 (US$b)
Problem 2: Process technologies of foundries fall behind that of competitors
Chart 2: Greater China 12-inch foundry technology roadmaps, 1H14-1H17
Chart 3: China's IC industry output value by region, 2010-2014 (CNYb)
Chart 4: Distribution of China foundry production lines by region
Problem 4: China's IC design industry is weak in terms of design capabilities
China's IC industry - government support, policies, and goals
Chart 5: National semiconductor industry development guidelines, policy-based goals and support
Chart 6: "Made in China 2025," policy-based goals and support for China's semiconductor industry
Chart 7: Investment status of Big Fund and other investment institutions
Models used by Big Fund for investing in semiconductor industrial parks
Chart 10: Big Fund model for investing in semiconductor industrial parks
Areas of the semiconductor industry support in the 13th Five-Year Plan
Chart 13: Market share of world's top-five packaging and testing firms, 2010-2014
Chart 14: STATS ChipPAC stock price, January 2010-July 2015 (SGD)
Chart 16: Market share for world's leading CMOS image sensor vendors, 2010-2014
Chart 17: OmniVision stock price, January 2010-July 2015 (US$)
Chart 19: Market share of leading global DRAM and NAND vendors, 2012-2014
Chart 24: Big Fund's criteria for selecting potential future acquisition targets
The Big Fund's impact on foundry and packaging and testing industries
