Recently, market research agency Trendforce pointed out in a report that it is expected that by 2027, Chinese mainland's mature semiconductor manufacturing capacity will account for 39% of the world's total, mainly concentrated in 28nm and older processes. Companies such as SMIC, Huahong Group and Hefei Crystal Integration are actively expanding production, focusing on special processes such as driver chips, CIS ISPs and power semiconductor discrete devices. In terms of advanced processes (including 16 14nm and higher), Chinese mainland production capacity is only 8%. A 28nm process is sufficient for most chips, but for a few areas such as mobile phones, a more advanced process may be required. Therefore, it is very important for domestic semiconductor manufacturers to expand production capacity to meet demand.
In the context of increasingly fierce global competition in science and technology, the semiconductor industry has become the focus of competition among countries. At present, China has become the fastest growing region in the global semiconductor industry, with the largest market demand and the most active in the world, and is playing an increasingly important role in the security and stability of the global semiconductor chain. At the same time, China's semiconductor industry is also facing the dual challenges of technology and international politics, and how to effectively grasp the initiative of the chip industry and achieve independent innovation and leapfrog development has become an urgent issue in front of China's semiconductor industry.
To this end, China has introduced a series of policies and measures to support the development of the semiconductor industry. For example, the "National Integrated Circuit Industry Development Promotion Outline" was promulgated, which put forward the goal of 2030, the level of integrated circuit design reaching the international advanced level, the level of integrated circuit manufacturing approaching the international advanced level, the level of integrated circuit packaging and testing reaching the international advanced level, and the level of integrated circuit equipment and materials being greatly improved. The Ministry of Industry and Information Technology, together with the Ministry of Science and Technology and the Ministry of Natural Resources, issued the "14th Five-Year Plan for the Industrial Development of Raw Materials", proposing to include silicon carbide composite materials and carbon-based composite materials in the "14th Five-Year Plan" industrial scientific and technological innovation related development plan, so as to comprehensively break through key core technologies, overcome "stuck neck" varieties, improve the quality of carbon-based new materials and other products, and promote the upgrading of the industrial base and the modernization of the industrial chain. In addition, various provinces and cities have also issued their own semiconductor industry development plans and support policies, forming a pattern of coordinated development across the country.
Under the guidance and support of policies, China's semiconductor industry has also made a series of achievements and progress. In the field of integrated circuit design, China has more than 2,000 design companies, covering products from communications, computing, consumer electronics to automotive electronics, industrial control and other market segments, including leading enterprises with international competitiveness, such as Huawei HiSilicon, UNISOC and Torch Integration. In the field of integrated circuit manufacturing, China has more than 100 manufacturing enterprises, among which SMIC, Hua Microelectronics, Yangtze River Storage and other enterprises have achieved mass production of 14nm and below processes, while JCET, SMIC South and other enterprises are also actively deploying the research and development and construction of 7nm and below processes. In the field of integrated circuit packaging and testing, China has more than 200 packaging and testing companies, among which Huatian Technology, Changdian Technology, Jiangsu Changdian and other enterprises have mastered advanced packaging technology, such as FOWLP, 25D 3D, etc., can meet the needs of the high-end market. In the field of integrated circuit equipment and materials, China has more than 300 equipment companies and more than 400 material companies, among which China Micro Corporation, North Huachuang, Zhongke Advanced and other enterprises have realized the domestic substitution of some equipment, such as etching machines, ion implanters, chemical vapor deposition machines, etc., and SMIC, SMIC South and other enterprises are also actively using domestic equipment and materials to promote the localization process.
In addition to making breakthroughs in the traditional semiconductor field, China's semiconductor industry has also shown strong innovation ability and development potential in the emerging semiconductor field. The third-generation semiconductors, represented by silicon carbide (SiC) and gallium nitride (GaN), have gradually increased the proportion of applications in consumer electronics, energy and power, new energy vehicles and other fields, showing unique advantages different from silicon-based materials, and new semiconductor materials are reshaping the new pattern of competition in the global semiconductor industry. According to CASA Research statistics, the domestic market size of silicon carbide and gallium nitride power electronic devices in 2022 will be about 105500 million yuan, a year-on-year increase of 484%。Based on different data, the overall penetration rate of silicon carbide and gallium nitride power devices in China in 2022 will be between 6% and 8%.
In this field, China has a number of internationally influential enterprises, such as the Institute of Semiconductors of the Chinese Academy of Sciences, the Institute of Microelectronics of the Chinese Academy of Sciences, the Shanghai Institute of Microsystems of the Chinese Academy of Sciences, the Ningbo Institute of Materials of the Chinese Academy of Sciences, the Suzhou Institute of Nanotechnology of the Chinese Academy of Sciences, the Institute of Electrical Engineering of the Chinese Academy of Sciences, the Institute of Electronics of the Chinese Academy of Sciences, the Institute of Physics of the Chinese Academy of Sciences, the Shanghai Institute of Applied Physics of the Chinese Academy of Sciences, the Hefei Institute of Materials of the Chinese Academy of Sciences, the Changchun Institute of Optics and Mechanics of the Chinese Academy of Sciences, the Xi'an Institute of Optics and Mechanics of the Chinese Academy of Sciences, the Chengdu Institute of Optoelectronics of the Chinese Academy of Sciences, the Shenzhen Advanced Institute of the Chinese Academy of Sciences, the Shenzhen Institute of Nanotechnology of the Chinese Academy of Sciences, Shenzhen Institute of Micro-Nano, Chinese Academy of Sciences, Shenzhen Institute of Materials, Chinese Academy of Sciences, Shenzhen Institute of Energy, Chinese Academy of Sciences, Shenzhen Institute of Biology, Chinese Academy of Sciences, Shenzhen Institute of Medicine, Chinese Academy of Sciences, Shenzhen Institute of Information, Chinese Academy of Sciences, Shenzhen Institute of Intelligence, Chinese Academy of Sciences, etc. These enterprises have made important progress and breakthroughs in the preparation of third-generation semiconductor materials such as silicon carbide and gallium nitride, as well as the design, manufacturing and packaging of devices, providing strong technical support for the innovation and development of China's semiconductor industry.
In addition to third-generation semiconductors, China's semiconductor industry is also exploring new technology paths, such as ultra-wide bandgap semiconductor materials such as gallium oxide, two-dimensional materials, and quantum dots, as well as new devices and architectures such as new memories, neural network chips, and optoelectronic integrated chips. These new technologies are expected to occupy an important share in the future semiconductor market, providing new opportunities and space for the leapfrog development of China's semiconductor industry. In the process of development of the semiconductor industry, China's semiconductor industry has always adhered to the principle of open cooperation, maintained good communication and exchanges with partners in the global semiconductor industry, jointly maintained the globalization of the semiconductor industry, promoted project cooperation and platform construction under the framework of cooperation between the world, and carried out normalized personnel exchanges and technical cooperation. At the same time, China's semiconductor industry also actively participates in the formulation and revision of international standards, contributing Chinese wisdom and Chinese solutions to the healthy development of the global semiconductor industry.
In short, in the face of various challenges and opportunities at home and abroad, China's semiconductor industry has always maintained self-confidence and calmness, continuously improved its independent innovation capabilities and core competitiveness, continuously expanded domestic and foreign markets and cooperation space, continuously promoted the optimization and upgrading of industrial structure and model, and continuously realized the high-quality development of the semiconductor industry, making positive contributions to building a community with a shared future for mankind and promoting scientific and technological progress and social progress. List of high-quality authors