Chinese international semiconductor industry flood Dongqian trend

The semiconductor industry policy support greater forthcoming, a large number of foreign chip manufacturing enterprises in different forms and at the same time, to China Dongqian, hisys fraud, discontinued after the ark Chinese chip appear bubble theory. China's chip industry is facing new contradictions.

The industry has become the trend of the East

In July 5th, the famous American semiconductor company LSI Logic announced its ZSP digital signal processor unit for $13 million in cash and shares sold to Limited by Share Ltd verisilicon. VeriSilicon Limited by Share Ltd in 2001 in the Cayman Islands, with its headquarters located in Shanghai China, is a standard sense Chinese company. With the LSI Logic ZSP will resell business completed, and a semiconductor business to Chinese dongqian.

According to reporter rough statistics, only since the beginning of this year, the product line sold to China enterprises or production line will be relocated to the China project: STMicroelectronics $1 billion investment in Shenzhen to establish modern semiconductor packaging and testing plant; South Korea $230 million to build a new factory; a new Samsung Semiconductor Assembly line and so on several big projects in Suzhou. Behind a number of emerging companies to invest in the project even more numerous.

The industry generally believes that the semiconductor industry is undergoing a fine fission. Industry giants will be business lines to the higher value-added areas, and will be relatively low value-added manufacturing and back-end packaging testing work to developing countries, especially in china. LSI Logic, senior vice president of global Phil Brace told reporters: with the increasing competition in the field of chips, the company needs to invest limited funds to the most effective areas. The maintenance of a plant to maintain a huge expenditure of funds, for the LSI, will focus on core development."

Under the guidance of the new concept of enterprise resource allocation in the face of competition, the world's major semiconductor manufacturers are reducing the number of manufacturing plants. As of 2005, Motorola has 28 of the original semiconductor factory, through mergers, sales reduced to 9. The cuts can be described as costly, 2000 in Tianjin Chinese completed $1 billion 900 million new 8 inch production line, 4 years after a $260 million equity to smic. In addition, IBM, Agilent also recently sold some chip manufacturing capacity. According to one industry source: a considerable part of these capacity directly or indirectly transferred to china.

China has become a hot spot for investment in semiconductor industry. July U.S. Sequoia Capital China fund vice president, said in an interview with Dow Jones newswires, the next step will be to increase investment in China's semiconductor industry.

Domestic demand is an important reason for this industry changes. According to Gardener released the "2005 world semiconductor market survey report" shows, including Mainland China, Taiwan, South Korea Chinese Chinese and Singapore, the Asia Pacific market share reached 44.5%, compared with the previous year growth rate reached 11%. In these Asian countries and regions, China's mainland is one of the largest growth.

In China, the establishment of a branch ceremony, STMicroelectronics vice president and CEO of Bob semiconductor Chinese Krysiak told reporters: global sales of about the method of semiconductor in 2005, nearly 47% from the Asia Pacific region, and only China market sales accounted for about 25% of the global market. In this case, STMicroelectronics formed the Greater China region, and asked him to "contribute to the company's largest sales revenue". At the same time creating Dongqian crisis?

The semiconductor industry has created a China Dongqian important opportunity, also brought great challenges and problems.

With a North and south, two wafer project into a financial crisis, China's semiconductor industry bubble theory began to spread.

In early July, which invested $700 million in Changzhou, the construction of 8 inch wafer foundries - NACO (Changzhou) Electronics Co. Ltd project has been in a state of deadlock. At the same time, once known as the $600 million construction site in Beijing Lin River Industrial Zone 8 inch wafer foundries in Fukang international, is currently in a state of suspension.

These two projects are due to funding problems and shelved. Global semiconductor equipment and materials industry association, China Market Research Manager Ni Zhaoming told reporters: in addition to technical and business environment, the fund will be the future of China's semiconductor industry, the main killer. It is understood that, as a key national support projects - SMIC has received more than $4 billion in national loans. This is from the core of its own target $10 billion investment is still a considerable distance.

Li Guojie, director of the Institute of Chinese Academy of Sciences, told reporters: to the current international market prices, the construction of a new chip production line of at least $1 billion."

At present, many projects in China to start the initial funding of only tens of millions of dollars, and most of the manufacturing equipment used to acquire foreign companies to get rid of the second-hand equipment on the line." An industry source told reporters: Changzhou neekit construction project from the beginning because of intention is to get a number of Intel's low price of second-hand equipment. The semiconductor chip processing technology of fast upgrading, this may be because of the development of ideas, for the future industrial development Chinese buried under a time bomb."

"Chinese in several samples of LCD panel manufacturing, we have already seen, most in the technology, the lack of funds to the state, when foreign panel makers have already began the seven generation eight generation line today, we acquired over five generation line is not