Sempro met Mr. Lao

Sempro Technologies met Mr. Lao from CSIA and Xiamen municipal peoples government.

The “National Guideline for Development of the IC Industry,” designed to accelerate China’s efforts in 14nm finFETs, advanced packaging and memory, was published in 2014. Later China launched its “Made in China 2025” plan. One objective of Made in China 2025 is to increase China’s self-sufficiency in IC production to 40% in 2020 and 70% by 2025. Looking at the recent trend this is a challenging goal as China’s IC production as percentage of consumption has only increased from 10.8% in 2012 to 13.3% in 2017, see Figure 1 (IC Insights, Semiconductor Engineering).

IC opportunities: Chinese fabs and Dutch equipment

Over the past years, the Chinese government has launched many plans and initiatives focusing on innovation and moving China’s industry up the value chain. The most important theme in the 13th five-year-plan is to establish an innovation-driven economy. During the National Congress of the Communist Party of China last October, President and Secretary-General Xi Jinping reiterated that “We will move Chinese industries up to the medium-high end of the global value chain, and foster a number of world-class advanced manufacturing clusters” (Straits Times).

China’s semiconductor industry is expanding at an impressive pace. Worldwide semiconductor sales keep rising and China is still very much dependent on foreign imports of chips for its electronics industry. In 2017 China’s number one import commodity was ICs (CNY 1.8 trillion; ~ US$ 280 billion), far ahead of number two crude oil (CNY 1.1 trillion, ~ US$ 174 billon) (National Bureau of Statistics of China).

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