The semiconductor industry, the rise of Taiwan "regard with special esteem"

Recently, the official news China will launch integrated circuit industry support policy, to provide RMB billion, is expected to ten years trillion yuan scale to promote development of key industries including semiconductor design, manufacturing, packaging, testing, core equipment and materials etc.. At this time, the Ministry announced, for the implementation of "national strategic emerging industry development plan", will set up a total size of 30 billion yuan in Beijing's IC industry development of equity investment funds, investment in Beijing and the national integrated circuit industry leading enterprises, major projects and innovation entities or platform, to support the merger the restructuring of key enterprises and overseas acquisitions, large industry with the core competitiveness of their cultivation.

For the mainland to the national capital to support the development of local industries and its impact on the industry as a whole, I believe the industry are impressed. Whether it is from the early passive components, printed circuit board, to the recent LED, solar panels and other industries, due to various policy measures, the government and the relevant funds of the Austrian aid makes the global production and marketing structure changed dramatically in the market occupies a space for one person to the original manufacturers in Taiwan.

In fact, the semiconductor industry has also been one of the areas of focus of the mainland government, especially from the establishment of the local industrial chain, upstream and downstream integration and transformation and upgrading of the point of view, the semiconductor is the most important areas. However, under the constraints of various industrial environment and technical standards, the development of the mainland is not very successful. Now than in the past to regroup, comeback, more substantial investment and guidance force investment, coupled with its downstream terminal industry in the past are not an ignorant person, a lot of information and communications products worldwide market share in the world forefront, close cooperation in the upstream and downstream, will be more conducive to the development of upstream semiconductor industry, the semiconductor industry in Taiwan will gradually form a threat, and will further impact to the downstream industry.

People with no foresight, although Taiwan's semiconductor industry still has a certain degree of advantage, but the margin decreased year after year, plus a variety of government funds, in the tax burden, and local support on the domestic market, believe that soon will exert pressure on the semiconductor industry in Taiwan. In fact, in recent years, the official support of the mainland, some of its semiconductor industry, such as the IC design field, there are some land suppliers to the threat of Taiwan industry.

It is foreseeable that in the mainland government funding under the pressure of competition, resulting in Chinese mainland IC design industry will continue to fear of Taiwan IC design industry. If the mainland IC design industry due to policy support and the rise, will indirectly lead to market China, semiconductor manufacturing and packaging foundry services, will promote Taiwan industry layout Chinese, market demand, the government's industrial policy will also form a certain degree of test.

In the face of the upcoming challenges, in addition to face the threat of the rise of the mainland's semiconductor industry, but also should quickly seek countermeasures to avoid repeating the mistakes of the solar panel industry. Here are some suggestions:

First, the government and the industry should focus on supporting the development of high-end chip products, expanding the gap between the mainland's leading. With the mobile device market competition is becoming intense, the brand industry to achieve product differentiation effect through various functions of the application, the market demand for the performance of high order chip products such as the application processor continues to increase, Taiwan has to help the industry to the development of high-level application processor chip, related policies should be promoted.

Furthermore, the selection and transfer of niche applications to help the industry develop high value-added products. In the past the Taiwan chip industry customers are more concentrated in the field of traditional 3C, but as the market becomes saturated, other emerging intelligent electronic products, including green energy, medical, automotive electronics and other fields, for simulation, sensor chip has high demand, while Taiwan is now the industry less application across the field of foot, should assist the industry in multi field development.

Finally, the Taiwan foundry industry first in the world, in addition to leading TSMC, UMC, including other advanced world, Wang Hong, Li Jing, Tang new industries, have high order process capacity, excellent process ability. The government encourages the foundry to assist chip design industry development such as sensor, simulation, MEMS and other related processes, improve the yield rate and product specifications, as the preferred reward of R & D investment deduction items, to reduce the Taiwan manufacturing industry in the future to mainland customers dependence.