[Two Sessions]Focus on support and reverse the chaos!Compound semiconductor industry is expected to meet explosive growth

Recently, the National Two Sessions were held in Beijing. Wang Wenyin, member of the National Committee of the Chinese People’s Political Consultative Conference, and Li Biao, a representative of the National People’s Congress, put forward their own suggestions and views on the development of the third-generation semiconductor.

01

Three phenomena to think about

At present, the tentacles of the third-generation semiconductor industry have extended to key areas such as 5G base stations, UHV, intercity high-speed rail transportation, and new energy charging piles. On the eve of the outbreak, the prospects are bright and the future can be expected. However, Wang Wenyin found in the research process that this Three phenomena in the field are still worth noting:

 First, misplaced

At present, the cost-effective advantages of third-generation semiconductors are gradually emerging, but there is a phenomenon of demand dislocation in product development and market end applications.

Relevant agencies predict that in the next decade, the global sales revenue of SiC and GaN power semiconductors will reach an average annual double-digit growth rate, and sales revenue will exceed US$5 billion by 2029.

Compared with the investment, the third-generation semiconductor has less revenue, but it has gathered a lot of resources, and the global giants that entered the market first have established their own circle of friends and moats, and most of the high-end products in my country’s industry are imported;

 Second, a run

When an emerging industry arises, it is easy for everyone to swarm in a short period of time. The third-generation semiconductor industry is no exception. The explosive growth of upstream and downstream enterprises in the industry chain can easily lead to the risk of running on talents and funds.

Especially in terms of talents, there is a shortage of talents in my country’s semiconductor industry, especially those with more than 10 years of experience, and the training of third-generation semiconductor industry talents takes at least 3-5 years. If you want to overtake in a corner, you need to realize the urgency of time. , so that limited talents can play a greater role;

  Third, scattered

Under the blessing of national policies, projects all over the country have been launched. According to incomplete statistics, in 2020, more than 14 third-generation semiconductor projects and related industrial parks have been signed and implemented, with a total investment of over 80 billion yuan, involving 9 regions in 7 provinces.

The existence of some low-level repetitive constructions means that the impact of administrative orders on the industrial chain is greater than that of market regulation, and the efficiency of investment conversion is low, making it difficult to meet the needs of industrial team battles. At the same time, the release of third-generation semiconductor profits is slow, and it is necessary to avoid industrial development from swarming into chaos, and turn local efforts into real production capacity through planning and guidance.

 02

Reversing the chaos and promoting the landing of the third-generation semiconductor industry

The third-generation semiconductor is an important development direction determined by the national 2030 plan and the “14th Five-Year” national research and development plan, and is regarded as an opportunity for my country’s semiconductor industry to overtake the curve. But there was a lot of confusion in the process.

In this regard, Wang Wenyin suggested that decisive measures should be taken to promote the implementation of my country’s third-generation semiconductor industry.

Key support, collaborative research

The third-generation semiconductor industry covers a wide range, and can focus on fostering 3-5 world-class leading enterprises in China and increasing the cooperation in the entire industrial chain.

From the current situation, the three companies of Cree in the United States, Infineon in Germany, and Roma in Japan account for about 70% of the global SiC market. Domestically, Sichuan Hiwei Huaxin is the most successful example of third-generation semiconductors. We must give full play to the institutional advantages of concentrating on major events and cooperate with leading enterprises to tackle key problems in order to form a benign development pattern of the third-generation semiconductor industry.

  Focus on the market and seize the high ground

The third-generation semiconductor manufacturers in Europe, America and Japan started early, showing a three-pronged situation. The SiC production in the United States even accounts for 70%-80% of the global market.

China needs to make greater efforts in industrial planning and continuously demonstrate the actual development path of the industry through research.

At present, the third-generation semiconductors have practical applications in the fields of industry, consumption, and automobiles. In the future, we can explore more application scenarios through the integration of production, education, research, and application, continue to innovate, explore killer applications, and at the same time make the cake bigger and occupy the market. Completely transform the development of the industry from policy-driven to market-driven.

Down-to-earth, reasonable planning

The global semiconductor annual output value is nearly 500 billion US dollars, and more than 90% come from the first generation of semiconductors. The third-generation semiconductors are part of the advanced investment in order to seize the market. We firmly believe that the third-generation semiconductors in my country can rise, and the important role played by the first- and second-generation semiconductors cannot be ignored.

Starting from the top-level design, rationally allocating resources in the semiconductor field, focusing on mature products, and tackling key products, can we usher in the spring of semiconductor development.

 03

Focus on supporting third-generation compound semiconductor manufacturing enterprises

Li Biao mentioned in the “Suggestions on Supporting Domestic Manufacturers of Third-Generation Compound Semiconductor Integrated Circuits” that relevant departments should increase policy support for integrated circuit manufacturing enterprises; he suggested that the state should adopt policies such as finance, taxation, finance, and listing. , to guide, encourage and support third-generation compound semiconductor manufacturing enterprises, so as to comprehensively, effectively and continuously promote the localization of core chips.

Li Biao also suggested that on the basis of the technology equipment industry in the Midwest, the domestic third-generation compound semiconductor manufacturing enterprises should be regarded as the core key support for industrial development.

Li Biao pointed out that through good industrial agglomeration, the basic materials at the front end of the industry chain and the chip design and complete machine manufacturers at the back end can be attracted to develop locally, which can gradually improve the formation of the third-generation compound semiconductor ecosystem in the central and western regions, and develop The “gallium chip” integrated circuit industry, which is different from the “silicon chip” integrated circuit industry in Beijing, Shanghai, Guangzhou and Shenzhen, can also avoid vicious competition and reduce unnecessary duplication of construction, complement and strengthen the national integrated circuit industry, and improve the layout of the national integrated circuit industry. China is gradually getting rid of the situation that high-end chips can only rely on overseas manufacturers for tape-out.

It is reported that Sichuan belongs to the province of science and technology and equipment. Relying on a good industrial foundation of science and technology equipment, the compound semiconductor industry ecology has formed a prototype in Sichuan. Under the strategic needs of the country to vigorously develop 5G, Internet of Things, artificial intelligence and independent control, the compound semiconductor chip industry It is expected to usher in explosive growth.

 

The Links:   2MBI400TB-060 CM75DY-28H