"Twelfth Five-Year Plan" China's Integrated Circuit Enters "Big to Strong"

Unlike the "Eleventh Five-Year" blindly "bigger", during the "12th Five-Year Plan" period, China's integrated circuit industry will enter a stage of "big to strong".

According to the China Semiconductor Industry Association, during the "12th Five-Year Plan" period, China will continue to support the integrated circuit industry through "very large-scale integrated circuit manufacturing equipment and complete sets of processes" (ie "02 special projects"), and support will be increased. According to industry insiders, with the full support of the government, China's semiconductor industry will usher in yet another "golden period," and leading listed companies are expected to be cultivated into internationally competitive enterprises.

The leaders of the Ministry of Industry and Information Technology Department have also made it clear that they will work hard to break the bottleneck of capital, technology, market, talent and policy. While investing more in the integrated circuit industry, they will vigorously promote mergers and acquisitions during the "12th Five-Year Plan" period. Form a company with international competitiveness and achieve a leap forward in the development of the industry.”

Market participants pointed out that most listed companies are the leading players in various segments, and they are most hopeful to lead this round of “industry leapfrog development”. Related listed companies include SMIC, China Microelectronics, Silan Micro and others.

At the same time, the development of strategic emerging industries will also bring opportunities for the semiconductor industry. Li Jun, president of CCID Consulting, predicts that the semiconductor market of the Internet of Things industry will reach more than 300 billion yuan; triple play will first drive the end consumer market, and the terminal equipment market will exceed 400 billion yuan, which will drive audio and video decoding and network transmission. The demand for multiple semiconductor fields such as information security, etc.; the development of LED optoelectronic displays will also drive demand for semiconductors such as drive circuits and electronic rectifiers.

Association figures predict that during the “Twelfth Five-Year Plan” period, China’s investment in the semiconductor industry will exceed 270 billion yuan, which has doubled over the past five years.