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Symposium Industry Intelligence Programs
Document Code: SVSYM14110501
Publication Date: November 2014
© Copyright 2014 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved.
Development of Chinese and Taiwanese
Semiconductor Industry’s Major Sectors,
2014 and Beyond
Sample
Symposium
© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 1
Abstract
Although Taiwan’s semiconductor industry still remains ahead of China in terms of shipment value and
technology development, China has been catching up fast, with an aim to beef up the industry with
a series of governmental preferential and incentive policies to attract foreign investors
With massive funding and aggressive talent poaching strategies, China has brought a negative
impact on Taiwan’s fabless IC design industry where IC designers are most needed
Presently, China and Taiwan have competed fiercely in the mobile communications domain and
thus Taiwanese companies have been looking for international cooperation chances while
increasing integration and R&D capabilities for high-end products to maintain edge
Other than looking into the Chinese domestic market domains with high potential (mobile
communications and telematics), Taiwan’s fabless IC design houses also have been trying to tap
the demand in emerging markets and domains (such as medicine, IoT and sensor) so as to
reduce dependence on China
As with IC manufacturing, China has been cooperating with international brands in advanced
manufacturing processes in the hope of revving up its fabless IC design industry; by streamlining its IC
manufacturing technologies and capacities, China aims to provide one-stop service solutions after
filling the back-end packaging and testing service gap
Taiwan’s IC manufacturing and packaging & testing vendors still outperform Chinese counterparts
but China is expanding fast; for this reason, Taiwanese packaging and testing vendors have been
accelerating its pace to advance into high-end packaging and testing services so as to obtain
orders from Chinese wafer foundries one step ahead of their Chinese counterparts
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© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 2
Contents
Key Developments of the Semiconductor Industry
in China and Taiwan
Major Battlegrounds Between the Chinese and
Taiwanese Semiconductor Industries
China’s Incentive Policies for the Semiconductor
Industry and Their Consequences
Symposium
© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 3
The Chinese Semiconductor Industry
Addresses More on Fabless IC Design
19% 24% 25% 27% 29% 32%
32%31% 31% 22% 23%
24%
50% 45% 44%50% 48% 44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013
IC Packaging and Testing IC Manufacturing
IC Design
27% 31% 27% 28% 27% 26%
49%46% 51% 49% 50% 54%
24% 22% 22% 23% 23% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013
IC Packaging and Testing IC Manufacturing IC Design
Chinese Semiconductor Market Share by Industry Sector, 2008-2013
Taiwanese Semiconductor Share by Industry Sector, 2008-2013
Source: CSIA (China Semiconductor Industry Association), MIC, October 2014
The differences between the Chinese and Taiwanese semiconductor industry remain significant; with its dominance in IC manufacturing, Taiwan has relied heavily on the semiconductor industry as its major source of revenue; on contrary, China relies more on the joint ventures between international brands and Chinese local brands and packaging and testing services are major source of revenues for Chinese semiconductor industry
Fuelled by the government’s preferential policy, Chinese fabless IC design houses ‘ share has been increasing and reached over 30% in 2013
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Chinese Fabless IC Design Industry Grows Rapidly
Chinese vs. Taiwanese IC Design House Shipment Value and Their Global Share, 2007 - 2014
Source: CSIA, compiled by MIC, September 2014
Leveraging China’s subsidization for fabless IC design, some IC design houses have been able to see a rise in market share at the cost of profits as they can use government’s subsidies to make up losses, while increasing the adoption share of China-made component at the terminal end
The new no.18 document sets up a dedicated funds for semiconductor R&D that after MIIT acknowledges that the IC development is related to emerging industries, R&D funds will be given unconditionally; companies like Rockchip, Nufront, and Allwinner have obtained funds from the government to obtain the latest IP licenses, thereby narrowing down the technology gap with international brands
2007 2008 2009 2010 2011 2012 20132014(e)
Taiwan's Fabless IC 12.2 11.3 11.6 14.0 13.5 14.1 15.7 17.5
China's Fabless IC 3.0 3.4 4.0 5.7 8.1 9.8 12.5 15.0
Taiwan's Global Share 22.7% 20.4% 21.2% 20.3% 18.2% 18.2% 18.7% 18.8%
China's Global Share 5.5% 6.1% 7.2% 8.2% 10.9% 12.6% 14.9% 16.1%
0%
5%
10%
15%
20%
25%
0
4
8
12
16
20
2013 Chinese IC Design House Ranking
Company Annual
Revenue (US$ Mln)
Major Deliverables
Hisilicon 1,355 Communications ASIC, mobile phone baseband ICs, digital video decoders
Spreadtrum 1,050 Mobile phone baseband ICs
Datang Semi. 396 Mobile phone ICs, smart cards, automotive electronic ICs
RDA Micro. 380 Communications ICs, wireless ICs
Nari Smartchip 350 Security ICs, smart meters, optical fiber network
GalaxyCore 300 CMOS image sensor
Rockchip 300 Application processor
Silan 293 Digital audio processor IC, MCU, PMU
SDIC 291 PMU, smart card
Allwinner 260 Application processor
USD (Billion)
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© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 5
Taiwan Sustains Leading Position with
Edge in Advanced IC Manufacturing Shipment Value of Taiwanese and Chinese Manufacturing
Industry, 2007-2013
2007 2008 2009 2010 2011 2012 2013
Taiwan IC
Manufacturing22.4 20.6 17.4 25.9 24.3 26.3 32.6
China IC
Manufacturing6.6 6.5 5.6 7.4 7.1 8.3 9.9
Taiwan/China Ratio 3.4 3.2 3.1 3.5 3.4 3.2 3.3
2.8
2.9
3.0
3.1
3.2
3.3
3.4
3.5
3.6
0
5
10
15
20
25
30
35
Source: CSIA, compiled by MIC, October 2014
The China IC manufacturing industry still trails behind Taiwan; nevertheless, as more international brands are entering China to set up plants, the Chinese IC manufacturing industry is expected to keep on growing
Taiwan’s advanced manufacturing capabilities still allow the industry to advance China by three-folds in terms of shipment value; supported by the increasing scale of China’s industrial subsidies, the shipment value gap between Taiwan and China is expected to be shortened
2013 Chinese IC Manufacturer Ranking
Company Annual
Revenue ( US$ Mln)
Deliverables
SMIC 2,070 Chinese-funded wafer foundry
Hynix (China) 1,600 Foreign-funded Memory
Intel (Daliang) 690 Foreign-funded IDM
CR Microelectronics 650 Chinese-funded IDM/Wafer
foundry/separate parts
TSMC (China) 585 Taiwanese-funded wafer
foundry
Huahong NEC 580 Chinese- and Japanese-funded
IDM/wafer foundry
Xi’an XIGU Micro. 260 Chinese-funded IDM
HJTC (Suzhou) 230 Taiwanese-funded wafer
foundry
Sino-Microelectronics
210 Chinese-funded IDM
ASMC 170 Chinese-funded wafer foundry
USD (Billion) Ratio
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© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 6
SMIC Still Trailing Behind TSMC and UMC
40/45nm13%
55/65nm26%
90nm4%
0.13um12%
0.15/0.18um40%
0.25/0.35um5%
14Q2 SMIC Revenue Share (by process
technology)
Source: respective companies, compiled by MIC, October 2014
Process Development Roadmap of Major Chinese and Taiwanese Wafer Foundries, 2013-2015
28nm37%
40/45nm19%
65nm15%
90nm7%
0.11/0.13um3%
0.15 /0.18um
14%
0.25um and above
5%
14Q2 TSMC Revenue Share (by process technology)
40nm and
below22%
65nm
31%90nm
6%
0.11/0.13um
13%
0.15/0.18um
13%
0.25um and
above15%
14Q2 UMC Revenue Share (by process technology)
13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 TSMC 28nm 20nm 16nm UMC 40nm 28nm 14nm SMIC 40nm 28nm
SMIC capitalizes existing process technologies for differentiation, receiving selected orders from outstanding IC design houses such as bankcard ICs, CMOS image sensors and e-Flash; fully controlling the local IC design houses’ orders while concentrating on 0.11um and below process technologies
Other than existing product lines, SMIC also steps towards high-end process technology to jointly invest into 12” fab in Beijing with Zhongguancun Development Group and Beijing Industrial Developing Investment Mgmt. Co. and a 12” wafer bumping fab with JCET
Digital Logic RF e-NVM FSI CIS PMIC Others
40nm ◎ ◎
65nm/ 55 nm ◎ ◎ ◎
90nm ◎ ◎ ◎
Less than 0.11um ◎ ◎ ◎ ◎ ◎ ◎
In the short turn, SMIC still focus on product differentiation strategy; presently, 90nm technology remains mainstream while expanding its Shenzhen and Shanghai fabs
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© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 7
Foreign-funded IDMs Play a Key Role in Upholding the
Chinese Packaging and Testing Industry
The Chinese IC testing and packaging industry is mainly constituted by foreign-funded and Chinese-foreign joint ventures; their major businesses are to perform packaging and testing services for the mother company; international IDMs such as Intel have been helping the Chinese packaging and testing industry bolster its shipment value after the IC manufacturing and IC packaging and testing facilities that it has capitalized on since 2010 begun to operate; with the help of Intel, the Chinese IC packaging and testing industry’s had outperformed Taiwan in 2011 in terms of shipment value
Fuelled by increasing demand for packaging and testing service from foreign-funded IDMs, as well as the rapid rise of Chinese local IC design houses following the policy incentives from the Chinese government, the Chinese IC packaging and testing industry has seen growth; in 2014, Chinese packaging and testing industry’s shipment value is expected to top US$18 billion, up 13% year-on-year
USD (Billion)
Source: CSIA, compiled by MIC, October 2014
Comparison of Chinese and Taiwanese IC Packaging and Testing Industry’s Shipment Value, 2007 - 2014
2013 Chinese Packaging and Testing Vendor Ranking
Company Annual Revenue
(US$ Mln) Major Players
JCET(Xinchao Group) 1,246 China investment and contract services
Micron (Xi’an) 1,182 Foreign IDM
Freescale (China) 1,078 Foreign-funded IDM
RFMD (Beijing) 904 Foreign-funded IDM
Intel Semiconductor (Chengdu)
830 Foreign-funded IDM
Nantong Huada Microelectronics
733 Chinese-foreign JV
Tian Shui Hua Tian 571 China-funded & contract making services
Hitech (Wuxi) 526 Chinese-foreign JV
Panasonic (Shanghai) 447 Foreign-funded IDM
Infineon (Wuxi) 436 Foreign-funded IDM
2007 2008 2009 2010 2011 2012 2013 2014
Taiwan IC Manufacturing 10.1 9.8 8.2 11.1 11.5 11.7 12.4 13.4
China IC Manufacturing 8.3 8.9 7.3 9.3 12.7 13.8 16.0 18
Taiwan's Global Share 48.8% 48.9% 48.1% 47.1% 47.8% 47.9% 49.1% 49.3%
China' Global Share 40.1% 44.3% 42.5% 39.6% 52.9% 56.3% 63.6% 66.3%
0%
10%
20%
30%
40%
50%
60%
70%
0
2
4
6
8
10
12
14
16
18
20
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© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 8
Contents
Key Developments of the Semiconductor Industry
in China and Taiwan
Major Battlegrounds Between the Chinese and
Taiwanese Semiconductor Industries
China’s Incentive Policies for the Semiconductor
Industry and Their Consequences
Symposium
© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 9
Chinese and Taiwanese IC Design Houses
Compete Fiercely in Mobile Phone Domain
Source: MIC, October 2014
Observing China’s top 10 IC design houses in 2013, Hisilicon and Spreadtrum continued to dominate the Chinese market; fuelled by the increasing shipments for Huawei, Hisilicon’s revenue already exceeded Taiwan’s 3rd largest IC design house as Hisilicon’s revenue in 2010 topped around US$650 million, which was equivalent to the revenue of Taiwan’s sixth largest IC design house in 2010 and Taiwan’s fourth largest design house in 2012
Taiwanese and Chinese IC design houses compete bitterly in mobile phone baseband ICs; have low degree of overlap in other domains
Taiwan/China Top 10 Fabless IC Design Houses
Rank
Taiwan China
Company Revenue
(US$ Mln) Main Deliverables Company
Revenue (US$ Mln)
Main Deliverables
1 MediaTek 4,568 Mobile Phone Baseband IC Hisilicon 1,355 Communications ASIC, mobile phone baseband IC, digital video decoder
2 Novatek 1,392 LCD Driver Spreadtrum 1,050 Mobile Phone Baseband IC
3 Morningstar 1,130 LCD TV SoC Datang Semi 396 Mobile Phone IC, Smart card, Auto electric IC
4 Phison 1,080 NAND Flash Controller IC RDA 380 Communications IC, wireless IC
5 Realtek 947 Data Communications IC Beijing KT
Micro 350 Safety IC, smart meter, optical networks
6 Himax 767 LCD Driver GalaxyCore 300 CMOS image sensor
7 Raydium 366 LCD Driver Rockchip 300 Application processor
8 Richtek 360 PMU Silan 293 Digital audio processor, MCU, PMU
9 ILItek 323 LCD Driver SDIC 291 PMU, Smart Card
10 Orise 314 LCD Driver Allwinner 260 Application processor
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Qualcomm and MediaTek Still Dominate in Chinese
Smartphone Application Processor Market
Chinese Smartphone Application Processor Market Share by Chip Supplier, 1H 2014
Qualcomm42%
MediaTek36%
Apple8%
Spreadtrum5%
Marvell3%
Hisilicon3%
Chinese Application Processor Shipment Share by Number of Cores per CPU, 1H 201
Chinese smartphone market volume reached 193 million in the first half of 2014, nearly 80% of which were provided by Qualcomm and MediaTek
Chinese application processor suppliers Spreadtrum and Hisilicon only accounted for 8%
Based on number of cores per CPU shipped, five major AP suppliers for Chinese smartphones are mainly quod-core ones; only Spreadtrum still provides dual-core processors because of lowing speed of product development in 2013
Hisilicon only provides 4-and higher-cores CPU for Huawei, while other Chinese brands embrace IC solutions from Qualcomm and MediaTek
33.3%
31.7%
12.7%
40.7%
63.5%
61.6%
26.0%
72.1%
97.4%
25.2%
0% 20% 40% 60% 80% 100%
Qualcomm
MediaTek
Spreadtrum
Marvell
Hisilicon
Single Dual Quad Octa
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Low-cost Quad-core CPU to Hit 4G Battlefield
0%
50%
100%
Qualcomm
17.9%
11.6%8.6%7.3%
54.6%
Others MSM 8225(Q)MSM 8674(Q) MSM 8974(Q)MSM 8926(Q)
0%
20%
40%
60%
80%
100%
MTK
32.5%
28.1%
24.5%
14.9%
MT6582(Q) MT 6589(Q)
MT6592(O) Others
0%
20%
40%
60%
80%
100%
Spreadtrum
40.7%
25.2%
15.5%
18.6%
SC 8825(D) SC 8810(S)
SC 8830(Q) Others
0%
20%
40%
60%
80%
100%
Marvell
32.4%
26.8%
25.4%
15.4%
Others
PXA1920(Q)
PXA986(D)
PXA1088(Q)
0%
20%
40%
60%
80%
100%
Hisilicon
76.0%
20.7%3.3%
Others
K3V2(Q)
Kirin910(Q)
Source: MIC, October 2014
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Qualcomm Spots Opportunities from the
Rising Local Brands
Chinese Smartphone Market Share by Branded Vendor, 1H 2014
Vendor, 1H 2014 SAMSUNG, 13.3%
XIAOMI, 13.2%
LENOVO, 12.2%
COOLPAD, 10.8%
HUAWEI, 10.4%
APPLE, 7.7%
ZTE, 5.3%
OPPO, 2.6%
GIONEE, 2.5%
BBK, 2.2%
Others, 19.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qualcomm MediaTek Spreadtrum
Marvell Hisilicon
Chinese Branded Smartphones’ AP adoption, 1H 2014
Source: MIC, September 2014
The Chinese smartphone market is no longer dominated by international brands as Chinese brands Xiaomi, Lenovo, and Coolpad have fetched the places into top-five brands
Aside from Samsung, ZTE and OPPO, other top-10 branded vendors use MediaTek’s IC solutions; MediaTek had absolute edge in the first quarter of 2014; Qualcomm’s market share is rising following Xiaomi’s switchover to Qualcomm’s solutions and Chinese operators’ growing ambition in 4G
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Reference Design is Where IC Competition Lies
Key component suppliers in QRD
Snapdragon S200 S400 S600 S800
Driver IC: Novatek, Orise, Himax, ILItek, Renesas
Display
LCD Module: Truly, Tianma, BOE, TCL, BYD
Main Board
Touch IC: Synaptics, FocalTech, Goodix Cypress, Atmel
Touch Module: O-Film, Truly, Toptouch, Goword
CMOS Image Sensor: OmniVision, Sony, Samsung, GalaxyCore, SuperPix, Aptina
CCM: Sony, O-Film, Truly, Qtech
Sensor:Bosch, Freescale, ST, Avago, Invense, AKM, Intersil, LiteOn, Sitronix
International and Chinese suppliers
Key component suppliers in Intel Tablet Reference Design
Source: MIC, October 2014
Intel Atom
Driver IC: Novatek, Himax, ILItek
Display
LCD Module: BOE, Infovision, AUO, CPT, Innolux
Main Board
Touch IC: Goodix, Silead, FocalTech
CMOS Image Sensor: OmniVision, GalaxyCore, Superpix
Sensor:Bosch, InvenSense
International and Chinese suppliers
Aside from panel driver ICs, key component suppliers in international vendors’ reference design are comprised of international and Chinese local IC design houses and Taiwanese IC design houses’ share is relatively small except in Touch IC and sensor areas
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Contents
Key Developments of the Semiconductor Industry
in China and Taiwan
Major Battlegrounds Between the Chinese and
Taiwanese Semiconductor Industries
China’s Incentive Policies for the Semiconductor
Industry and Their Consequences
Symposium
© 2014 Market Intelligence & Consulting Institute Industry Intelligence Programs Page 15
China Semiconductor Policy Now Centers on
Integrated Planning
Incentives in taxation, financial investment, R&D, talent poaching, intelligence property rights
New No. 18 Document
Core electronic devices, high-end general
ICs, basic software product items (approx.
60 billion RMB budget in total)
Manufacturing Equipment and Assembly
Techniques for Ultra Large Scale
Integrated Circuit(approx. 1,20 billion
RMB budget in total)
National Science & Technology Major Project (2006-2020)
Energy-saving environmental protection industry
Next ICT Industry Promote mobile communications,
IoT devices, smart devices Tri-network convergence, IoT,
cloud computing Semiconductor
Biology Industry High-end equipment manufacturing
industry New energy industry New material industry New energy automotive industry
7 Strategic Emerging Industries of 12th Five-year Plan
Source: State Council, October 2014
In the past years, China’s MIIT, Ministry of Science and Technology and Ministry of Finance have been in charge of fostering the semiconductor industry with different subsidy plans under national science & technology major projects and 12th Five-year Plan; however, target completion rate is low due to subsidy inconsistency across departments
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Strong Market Demand in China Allures Taiwanese IC
Packaging and Testing Service Providers to Deploy
IC design houses have different deployment plans due to different attributes
Major IC Packaging and Testing Vendors
Using X86 as core processor, VIA has been expanding its product lines to cover ARM and communications domain and yield prominent results in communications
MediaTek (Hefei)
MediaTek Core Software Design (Chengdu)
MediaTek Shanghai
MediaTek Software (Wuhan)
MediaTek Software(Shenzhen)
Goodix (Shenzhen)
MediaTek’s China deployment focuses mainly on areas involving communications with subsequent investments focusing mainly on Reference Design integration
Vendor Plants in Taiwan Plants in China
ASE
Kaohsiung (K5/K7/K11), Zhongli, Taichung (including 8”-12” Bumping and high-end packaging service)
Weihai(Shandong)-packaging and testing services for separate parts Kunshan (Shanghai)-Analog IC packaging & testing components (Suzhou)
SPIL Changhua, Zhongshan, Hsinchu (inlcuding 8” and 12” Bumping and high-end packaging service)
Suzhou(3rd fab)-mainly provides traditional wire-based packaging service
PowerTech Hsinchu Suzhou
Source: respective companies, compiled by MIC, October 2014
Market demand and industrial clusters are main reasons why they set up plants in Suzhou
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China Takes Aim at Global Share with Dedicated Policy
Notice of the State Council on Issuing Several Policies on Further Encouraging the development of Software and Integrated Circuit Industries (no. 4 document)
State Council Issues National Outline of Integrated Circuit Industry in June 2014 – 120 Billion RMB
State Council sets up an industry working group to integrate MIIT, Ministry of Science and Technology, Ministry of Finance
Focal Areas How It Operates
Establishing National IC Working Group
Preparing National Development Fund
Effects on the Industry • It is anticipated that Kai Ma will act as the group leader
while minister of MIIT, Miao Wei, will act as vice group leader
• Kai Ma is the 4th-ranked VP takes over duties of the Premier, in charge of industry pipe industry, transportation, finance, human resources and social security work
• Group members are to include MIIT, National Development and Reform Commission, Ministry of Science and Technology and Ministry of Finance
• MIIT is in preparation to the group-in-charge; the national development funds are to be jointly funded by Ministry of Finance, state-run banks, private-controlled companies and Chinese-funded enterprises and has been approved by State Council
• National funds will be released by investing into dedicated companies with growth potential
• Aside from the central government, local governments will set up their own development funds (Beijing has set up 30 billion RMB development fund for the semiconductor industry)
• The completion of policy integration will facilitate the implementation of no. 18 and no. 4 documents
• National development funds will benefit more on IC design than on manufacturing and packaging & testing
• Chinese semiconductor and packaging and testing industries will expand faster
Source: CSIA, compiled by MIC, October 2014
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Vimicro
Superpix
China’s Deployment for IC Design and Manufacturing
Through National Development Fund, the central government attempts to control the IC industry by
becoming shareholders
Encouraging and forcing foreign semiconductors to cooperate with Chinese counterparts
UNIS China Electronics Co
Datang Telecom
RDA LeadCore Datang Microelectronics
Datang Semi.
NXP
SMIC
16%
19%
Datang NXP Semi.
Developing mix-mode automotive ICs (Datang 51% /NXP 49%)
Qualcomm
Shareholding
Co-develop 28 nm
Under China’s anti-trust investigation, Qualcomm may face a huge fine and may have to change
its royalty-charging method
Local gov’ts also set up own funds to support hidden champions
Intel
Solomon
SDIC
Hua Hong
Great Wall
Panda
TPV
Beijing Shanghai Shenzhen
Wuhan
Chengdu
Xi’an
Hefei
GalaxyCore SDIC
Source: respective companies, compiled by MIC, October 2014
Diga Device
VeriSilicon Fudan Montage
Tongfang
HuaHong On-Bright Country Mate Technology
Capital/ Technology Investment
Spreadtrum
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China is Building One-stop Service Model with
Help from International Brands
Tablet Smartphone NB
Rockchip 9.3%
Intel 6.4% 0.1% 88%
Spreadtrum 5%
RDA
Chinese mobile comm. IC market share and partnerships
UNIS (state-run enterprise) bought Spreadtrum for US$1.7 billion and RDA for US$900 million
Strategic agreement allows Intel to obtain tablet channels from Rockchip and Rockchip can access Intel’s Atom 3G&4G SoC production lines covering smartphone, tablet, notebook PC
It is reported that Intel will purchase 20% stake in Spreadtrum for US$1.5 billion; through the acquisition, Spreadtrum is able to strengthen chip integration and enhance chip efficiency
China determines to build up a comprehensive mobile IC supply chain (GalaxyCore, Goodix, Silead, etc) by cooperating with major chipmakers
Economies of Scale, High-end Packaging and Testing
28nm
OmniVision
Hua Capital +PuDong
SMIC
UNIS
US$1.67 billion
WLCSP Co.
13.4% shareholding
JECT STATS Qualcomm 12” bumping
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Taiwan’s IC Design Houses Cooperating with
Chinese Local Governments
Beginning in 2013, Taiwanese IC design houses have begun to strengthen cooperation with Chinese local governments, while seeking cooperation with Chinese companies in mobile phone, automotive, smart wearables and smart cards which have economies of scale but are lack of related ICs
To reduce the impact from the rise of Chinese semiconductor industry, Taiwanese IC design houses have taken aggressive stance towards high-end product development, stepping into emerging domains while diversifying products, technologies, and customers in order to widen the technological gap with Chinese counterparts
Strategy for selling mature products in China
Strategy for emerging domains in China
Recent collaboration with Chinese local
governments
MediaTek MediaTek continues to cooperate with Chinese white-box, branded and operators in smartphone sector
Automotive IC, e-wallet Hefei (500 RMB)
Realtek Realtek strives to cut into Chinese white-box tablet and TV brands with Wi-Fi, TV and audio offerings
Smart home appliances, smart meter, automotive IC
VIA
VIA continues to develop its Chinese brand; VIA Telecom enters into CDMA technology license with MediaTek to jointly develop Chinese smartphone market
Smart grid, OTT BOX Semiconductor Mfg. International (Shanghai) to form JV with state-run firms in Shanghai
Comparison of Development Strategies of Major Fabless IC Design Houses
64bit, Octa Core, LTE multi-mode adopted by LG and Sony
Set up R&D center in Singapore, to focus on smart city, smart medicine, and IoT
Ethernet and communications-related technology are its cores and most of international brands are already its clients
Set up a subsidiary in Singapore, focusing on IoT apps
Cooperation with European brands with automotive ICs to obtain leading position
Source: respective companies, compiled by MIC, October 2014 Available Only for Paid User
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5j03rup
TSMC (16nm) focuses on communications ICs while joint developing 3D ICs with DRAM brand Micron
SMIC(28nm) Mainly consumption ICs Looking for Korean brands to jointly develop NAND Flash
Taiwanese Firms Seeks Frontrunner Advantage in the
Chinese Packaging and Testing Industry
Xi’an plant: US$7 billion for 3D NAND flash manufacturing (10nm); completes packaging and testing facility before 2014 ends
Logic IC DRAM
Projects to invest US$30 billion into Xi’an plant and whether to add logistic manufacturing for 3D IC remains to be seen
ASE Kaohsiung Expanding high-end and bumping packaging services in Taiwan
SPIL Expanding and high-end and wafer packaging services in Taiwan
PTL Increasing logic ICs and NAND Flash
ASE Kaohsiung Through Universal Scientific Industrial (Shanghai) to increase SiP packaging lines at its Shanghai plant
SPIL Expanding FC CSP capacity at Suzhou plant
PTL Increasing investment to NT$70 million
Eon Silicon (NOR Flash) is seeking to enter China with NAND Flash
JCET Developing high-end packaging and joining hands with SMIC for 12” wafer bumping
Source: respective companies, compiled by MIC, October 2014
Leading wafer foundries in China and Taiwan have their own deployment for 3D ICs; China has succeeded in attracting Samsung to set up plant for 3D Memory and also has teamed up with Taiwanese companies in NAND Flash
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