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Approaches and Suggestions on Promoting the Development of Integrated Circuit Industry in China(Special Issue No. 35, 2017)

Dec 07,2017

By Ma Yuan & Ma Jun, Research Team on “The Development of Integrated Circuit Industry”, Enterprise Research Institute, DRC

Research Report Special Issue No. 35, 2017 (Total 1559) 2017-10-10

Abstract: In recent years, China's integrated circuit (IC) market demand keeps high, industrial development maintains a swift growth momentum, designing, manufacturing, package and testing and equipment materials have all witnessed a sound development. But it should be noted that China’s IC industry still lags far behind that of the advanced countries in terms of technology level, capital investment and R&D input and there is a long way to go for China’s IC industry to catch up with the world advanced level. The global IC industry is now experiencing a period of adjustment. China should seize this opportunity to make full use of the market resources and preferential policies, rely on innovation to form a comprehensive competitive advantage, and overcome the restrictions induced by late-start disadvantages. Based on up-stream factors, China needs to take an application-oriented strategy and focus on enhancing manufacturing capacity across the board. China also needs to make breakthroughs on major technical issues, improve the ecological environment and strive to realize the goal set out in the national development outline.

Key words: IC industry, late-start disadvantage, development approach, policy options