2020 China IC Industry Review and 2021 Development Prospect Forecast

Integrated circuits are the core products of semiconductors, the foundation of the global information industry, and an indispensable part of modern daily life and future technological progress. The integrated circuit industry has a wide range of downstream applications, including consumer electronics, the Internet, digital images, network communications, cloud computing, big data, artificial intelligence, etc. It is an important indicator to measure the comprehensive competitiveness of a country or region.

 01 Summary of China’s integrated circuit market in 2020

 1. The output of integrated circuits continues to grow

In recent years, my country’s chip technology has been continuously improved, and the integrated circuit industry has developed rapidly. Chip refers to the packaged integrated circuit, which is one of the cores of the information industry. In 2020, my country’s integrated circuits will maintain a growth trend, and the output will increase compared with 2019. Data show that from January to November 2020, my country’s integrated circuit output reached 233.9 billion pieces, a year-on-year increase of 15.9%.

  2020 China IC Industry Review and 2021 Development Prospect Forecast

Data source: Compiled by the Bureau of Statistics and China Business Industry Research Institute

2. The scale of the integrated circuit market is growing rapidly

The integrated circuit industry is a high-tech, high-investment and high-risk industry, and its development is inseparable from the long-term support of national policies. In 2020, driven by national policy support, my country’s integrated circuit industry has shown a momentum of rapid growth. The scale of the domestic integrated circuit industry has increased from 215.9 billion yuan in 2015 to 756.2 billion yuan in 2019, with a compound growth rate of 19.62%. In 2020, my country’s integrated circuits will reach 852 billion yuan.

  2020 China IC Industry Review and 2021 Development Prospect Forecast

Data source: Collated by China semiconductor Industry Association and China Business Industry Research Institute

 3. Continuous optimization of industrial structure

From the perspective of industrial structure, with the development of my country’s integrated circuit industry, the three sub-industries of integrated circuit design, chip manufacturing and packaging and testing are constantly changing. In 2020, the structure of my country’s integrated circuit industry chain will continue to be optimized. The proportion of my country’s integrated circuit industry chain has remained above 27%, and it has increased from 27.22% in 2011 to 40.50% in 2019. The development speed is generally higher than the industry average, and it has become the proportion of the various segments of the integrated circuit industry. highest sub-sector.

  2020 China IC Industry Review and 2021 Development Prospect Forecast

Data source: Collated by China Semiconductor Industry Association and China Business Industry Research Institute

 4. Gradually improve the industrial ecological chain

The pattern of chip design, wafer manufacturing and packaging and testing in my country’s integrated circuit industry chain has been continuously optimized. The integrated circuit design industry is converging in areas with intensive industry-university-research cooperation, wafer manufacturing is converging in areas with high capital intensity, and the packaging and testing sub-industry has accelerated its transfer to areas with abundant labor and lower costs. The industrial layout with testing as the main body and wafer manufacturing as the focus.

Overall, chip design and packaging have a large proportion, especially in the field of chip design, which has grown rapidly in recent years, and its proportion in the integrated circuit industry has shown an upward trend year by year, from 33.96% in 2015 to 40.51% in 2019.

  2020 China IC Industry Review and 2021 Development Prospect Forecast

Data source: Collated by China Semiconductor Industry Association and China Business Industry Research Institute

 5. Both the import and export of integrated circuits have grown

Although China’s chip production is gradually increasing, my country’s integrated circuit market is still in a situation where demand exceeds supply. The domestic integrated circuit output value is far from meeting the domestic market demand, and a large part still needs to rely on imports, especially high-end chips are still basically Rely on imports, so imported integrated circuits still dominate. Data show that from January to November 2020, my country’s integrated circuit imports were 488.5 billion pieces, a year-on-year increase of 21.9%, and the import value was 316.751 billion US dollars; the export volume was 236.9 billion pieces, a year-on-year increase of 20.5%, and the export value was 104.559 billion US dollars.

  

Data source: Compiled by China Customs and China Business Industry Research Institute

  02 Prediction of the development trend of the integrated circuit market in 2021

 1. National policies to promote the development of the industry

In 2021, the “Proposal of the Central Committee of the Communist Party of China on Formulating the Fourteenth Five-Year Plan for National Economic and Social Development and Long-term Goals for 2035” mentioned that it is necessary to strengthen basic research, focus on original innovation, and optimize the layout of disciplines and R&D. Promote interdisciplinary integration and improve the supply system of common basic technologies. The integrated circuit industry is among them. In 2021, the integrated circuit industry will develop in a general trend driven by the favorable national policies, and the technical level and market demand of the industry will continue to improve.

 2.5G and other emerging technologies drive a new round of outbreaks

With the continuous maturity of new technologies such as cloud computing, the Internet of Things, 5G communication, and artificial intelligence, the industrial upgrading speed of the main downstream industries of integrated circuits such as consumer electronics, video processing, and automotive electronics continues to accelerate. In 2021, the integrated circuit market will usher in A new outbreak. Artificial intelligence and AI technologies have made robots, drones, new energy vehicles/intelligent connected vehicles, and unmanned vehicles also key areas for the development of integrated circuits, and the integrated circuit market will usher in a new round of explosion.

  3. “Dual circulation” accelerates domestic substitution

In recent years, with the impact of Sino-US trade frictions, domestic substitution has become the development trend of the domestic integrated circuit industry. In the first half of 2020, benefiting from the rapid resumption of work and production in China and the advancement of “new infrastructure”, the process of domestic replacement of integrated circuits accelerated. In 2021, under the new dual-cycle pattern, integrated circuits and other industries will accelerate their transfer to China, which will drive the rapid increase in the demand for new materials, realize the independent development of emerging industries, and solve the problem of “stuck neck”. With growth, companies will also usher in new opportunities.

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