In recent years, competition in the semiconductor field has become increasingly fierce, and countries around the world are competing in this key track. Recently, it was reported that according to a survey conducted by the Korea Institute of Science and Technology Evaluation and Planning with the participation of 39 local Korean experts, China has successfully surpassed South Korea in various fields of semiconductor manufacturing. There are many deep-seated reasons behind this change, and it has also had a significant impact on the global semiconductor industry pattern.
The strong support of policies has laid a solid foundation for the rise of China's semiconductor industry. China has elevated the semiconductor industry to a national strategic level, and the "Made in China 2025" plan clearly lists the semiconductor industry as a key development area, pointing out a clear direction for industrial development and attracting a large number of resources to converge in this field. The National Integrated Circuit Industry Investment Fund is large-scale, providing strong financial support for key links such as technology research and development and capacity expansion of semiconductor enterprises. At the same time, the government has introduced tax incentives, R&D subsidies and other policies, which have effectively reduced the operating costs of enterprises, greatly improved the enthusiasm of enterprises for innovation, and created a policy environment conducive to the vigorous development of the semiconductor industry.
The continuous increase in R&D investment has become the core driving force for the progress of China's semiconductor technology. Domestic semiconductor companies and scientific research institutions continue to increase investment in research and development, showing a strong determination to innovate. In the A-share market, many listed companies in the semiconductor industry are actively engaged in R&D, with the average R&D expenses of the top 10 companies reaching 1.541 billion yuan in 2023, and the average ratio of R&D expenses to operating income is 9.76%. Scientific research institutions and universities are also delving into the field of semiconductors, and the results are constantly emerging. For example, the breakthrough made by Xidian University in gallium nitride power electronics technology has successfully achieved industrialization through energy technology, which has effectively promoted the development of the industry.
Breakthroughs in key technologies are the key support for China's semiconductor industry to achieve leapfrogging. In the field of memory chips, YMTC and CXMT have a strong development momentum, continuous technological upgrades, and continuous improvement of product performance and market competitiveness, gradually breaking the long-term monopoly of Korean enterprises. In terms of AI chips, domestic AI chip manufacturers such as Loongson Zhongke and Biren Technology have accelerated the adaptation to the needs of large models, and their performance in some scenarios has approached the international advanced level, which has effectively promoted the progress of AI chip technology. In addition, China has also made important progress in key technology fields such as the core technology of extreme ultraviolet (EUV) lithography machines and third-generation semiconductor materials, laying a solid technical foundation for the long-term development of the industry.
Picture: China surpasses South Korea in semiconductor technology (Source: WCCFTECH)
The huge domestic market demand provides a unique development advantage for China's semiconductor industry. With the rapid development of emerging technologies such as 5G, artificial intelligence, and the Internet of Things, the domestic demand for semiconductors has shown explosive growth. Domestic enterprises can get closer to the market, understand customer needs in a timely and accurate manner, and respond quickly to adjust products and technology directions, so as to accelerate technology iteration and product upgrading, and occupy a favorable position in market competition.
The cultivation and introduction of talents has injected a steady stream of vitality into China's semiconductor industry. Domestic universities and scientific research institutions attach great importance to the construction of semiconductor-related majors, and have cultivated a large number of high-quality professionals. At the same time, China has introduced a series of preferential policies to attract overseas semiconductor talents to return, and these talents have brought back international advanced technology and rich industry experience, which has significantly improved the technological level and innovation ability of China's semiconductor industry.
The gradual improvement of the ecology of China's semiconductor industry is also an important guarantee for the rise of the industry. The collaboration between upstream and downstream enterprises in the industrial chain is getting closer and closer, and a good industrial synergy has been formed in all aspects of design, manufacturing, packaging and testing. The development of packaging enterprises such as JCET Group and Tongfu Microelectronics promotes and grows together with chip design and manufacturing enterprises. In addition, a number of semiconductor materials and equipment enterprises have emerged in China, gradually realizing the localization of key materials and equipment, effectively reducing dependence on foreign countries and further enhancing the overall competitiveness of the industry.
China's semiconductor technology surpasses South Korea's, which is the result of a combination of factors. This is not only a major achievement in the development of China's semiconductor industry, but also has a profound impact on the global semiconductor industry pattern. In the future, China's semiconductor industry should continue to consolidate its advantages, continue to innovate, play a more important role in the global semiconductor market, and promote the sustainable development of the industry.
