Chinese Dream for IC Powerhouse Is Coming True

Alan Patterson
EETimes (11/18/2014 07:35 AM EST)

TAIPEI — China, which for nearly two decades has aimed to make semiconductor manufacturing one of its pillar industries, may realize the dream in the next 10 years, according to executives and analysts surveyed by EE Times.

China’s initiative comes as the nation imports more than 90 percent of the semiconductors it uses to assemble mobile devices such as Apple’s iPhone and iPad. The nation’s chip imports, exceeding $160 billion in value, cost more than its oil imports.

China is targeting a compound annual growth rate (CAGR) for the domestic chip industry of 20 percent between now and 2020, with potential financial support from the government of up to 1 trillion renminbi (US$170 billion) over the next five to 10 years, according to a report this year by market consulting firm McKinsey & Co. After years of failed attempts, China’s industry is poised to lead global production growth.

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