According to foreign media reports, according to the latest research report by market research company InformationNetwork, China's semiconductor processing plants produced 40 billion US dollars of integrated circuits in 2009, which increased the proportion of domestic market demand from 20.9% in 2004 to 25.1. %. China’s massive investment in the semiconductor industry has paid off.
Castellano said that the promotion of China's IC growth includes some incentives from the Chinese government, such as subsidies for electronic products sold in rural China. Building a 3G network and expanding mobile TV operations are also huge opportunities.
Castellano predicts that by 2013, Chinese semiconductor processing plants will be able to meet one-third of China's IC needs. He said that external investment will continue to build new chip processing plants in China, thereby increasing production levels. Many offshore companies have established processing plants in China through investment or acquisitions, including UMC's acquisition of Hejian Technology Co., Ltd.
InformationNetwork President Robert Castellano said in a statement that the recession and limited investment by the Chinese government have led China to invest only $7 billion in semiconductor processing plants over the past five years. These investments are only enough to build two 300mm wafer processing plants.
However, this trend will change soon. The Chinese government has decided to invest $25 billion in the chip industry over the next five years, including a $5 billion investment in a joint venture between Suzhou Ventures and Elpida and a $5 billion investment in Shandong Huaxin Semiconductor Co., Ltd.
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