Xiamen, China has been actively starting semiconductor projects, while China still has a few years before catching up to the U.S. semiconductor field.
China Needs 5-10 Years to Catch U.S. on Semiconductor Development
According to a recent report from South China Morning Post, Zhiping Zhou, Peking University professor and semiconductor industry expert, believes that China will need at least another five to 10 years to catch up to the United States in the semiconductor field.
Although China has made huge investments in the semiconductor industry for many years now, the country relies heavily on U.S. technology in the field of high-end integrated circuits (ICs). In 2018, China’s annual chip imports surpassed crude oil, reaching a total of $312 billion.
Zhou believes the overall industry ecosystem and the supply chain are the biggest issues China’s semiconductor industry will need to address. Improving the entire ecosystem will take some time when considering the complementary technologies (e.g., hardware, software, intellectual property) that are implemented in other countries. China will plan to develop the needed equipment, tools and technologies itself in order to quickly catch up with competing countries.
Multiple Semiconductor Projects Signed at Xiamen Fair
On September 8, at the 2019 Xiamen International Fair for Investment & Trade, 56 contracted projects were signed on-site, with a majority being advanced manufacturing projects. The new projects cover various areas such as new energy and materials, software and information services, and many others.
A few of the advanced manufacturing projects signed include:
Hong Kong Yuankang Technology Co. plans to invest $50 million to create multiple electronic component manufacturing projects that focus on research, development, and sales of electronics, microelectronics, and ICs.
Dongxu Optoelectronics Technology Co. plans to invest in the construction of a semiconductor materials industrial park in the Tongxiang High-tech Industrial Base. The end goal of the contract signed between the two groups is to make the industrial park a world-class semiconductor material base, with a total project investment of 14.4 billion yuan.
Pateo Group announced plans to set up a headquarters in Xiamen to build a manufacturing base for Internet of Vehicle (IoV) smart equipment. This location will mainly be responsible for designing and producing hardware and software integration platforms for smart network-connected vehicles. The goal is to build a smart factory with a capacity of 2 million sets per year, gradually turning the factory into a smart industry park.