More Chinese planning forays into semiconductor manufacturing
Published 2 April 2021
More Chinese companies from different sectors are speeding up efforts to enter the semiconductors sector.
According to a Global Times report, companies from sectors such as automobiles, smartphone manufacturers and home appliance producers, are getting into semiconductors, at a time when the workd is facing a shortage of chips.
As the development of China’s terminal devices – including smartphones and cars – is experiencing a fast growth period, China is becoming the biggest chip consumer, and the growing market demand has lured many companies into making semiconductors, Global Times said.
“Chinese companies learned a lesson after Chinese telecom firms ZTE and Huawei were sanctioned by the US – that is they need to resolve the foreign stranglehold on chip-making technology. As they are rushing into this sector, China’s semiconductors industry is likely to see a strong boost in three years,” Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times.
Earlier this week, Chinese local media reported that the 7-nanometer chips developed by tech giant Baidu-backed automotive intelligence technology company ECARX will soon enter mass production. Further, TCL, a top Chinese television maker, has registered a new subsidiary that will focus on businesses including chip design and new material development, according to media reports.
“Now, with the huge market demand, many Chinese tech companies that have done well in manufacturing electronic terminal products and have accumulated rich reserves of talent and capital, have the motivation to enter businesses in the upper stream of the industry chain,” Xiang said.
Xiang believes that China’s semiconductors sector is on the cusp of robust growth as a number of companies and vast amounts of capital have been invested into chips design and manufacturing.
“I expect that within three years, Chinese companies’ ability in the semiconductor sector – from designing to manufacturing – will see a marked improvement,” Xiang said.
Add to China, Japan has sought help from some Taiwanese semiconductor manufacturers, after a fire had hit one of the chip plants, according to a Reuters report.
Industry minister Hiroshi Kajiyama said: “We are in communication with several manufacturing equipment makers (in Taiwan) to speed up procurement.” Earlier this month, A Renesas Electonic Corp-owned Naka chip plant in northeast Japan was hit by fire earlier this month due to a power surge in one of the machines.