China's IC industry leading companies hard to find traces?

Leading companies have an important role in guiding the development of the industry. Looking at the developed countries and regions of the global integrated circuit industry, there are giants in the international market. For example, the United States has Intel, Qualcomm, South Korea has Samsung, Taiwan has TSMC. Although the mainland's integrated circuit industry has achieved rapid development for many years in succession and a number of high-growth and dynamic emerging companies have emerged in various areas of the industry chain, there is still a lack of leading companies with international competitiveness and leading the development of the industry.

At present, China's mainland integrated circuit companies are small in scale and disperse their power, which has become one of the important factors restricting China's integrated circuit industry to become bigger and stronger. For example, in 2012, the total sales of China's top ten integrated circuit design companies were only RMB 22.6 billion, while the number one ranking of Qualcomm’s companies in the world has reached US$ 13.18 billion. Among the integrated circuit foundry enterprises, the revenue gap between SMIC, which ranks No. 1 in China's mainland and TSMC in the world in 2012, is still about 9 times. Since the promulgation of the No. 18 document in 2000, China's mainland integrated circuit industry has entered the fast lane for more than 10 years. However, why are leading companies in the field of integrated circuits still difficult to trace?

First of all, the input is not strong enough. The IC industry is a highly intensive industry with capital, technology, and talent. According to relevant data, Intel’s capital expenditures reached about US$13 billion in 2012, and TSMC reached US$8.3 billion. In contrast, investment from IC companies in China is far from enough. The investment of SMIC and other industry-leading companies is less than US$1 billion per year. The insufficiency of capital investment directly affects the scale expansion and technology research and development of enterprises, leading to the inability of enterprises to achieve sustainable and sound development, and cultivating leading enterprises is always a dream.

Second, market competition is not standardized. For example, the protection of intellectual property rights is not enough, leading to the problem of homogenous products and low-price competition among enterprises; the business environment is not regulated; many companies use technology to dig people to obtain technical resources; lack of a fair competitive environment has wiped out entrepreneurs. The enthusiasm for technological innovation has led to technical planning and market coherence mistakes in the product, and companies have not been able to form sustainable development genes.

Finally, industrial integration is not in place. Integration is one of the effective ways for leading companies to grow. At present, more and more companies are willing to accelerate integration, and the state encourages integration, but there are still no specific operating rules. For example, SMIC had intentionally merged with a domestic loss-making enterprise. Due to the overvaluation of the other party's assets, its acquisition costs and expected value from the future are not equal, and there is no specific support for the integration. Finally, SMIC has given up its acquisition. plan. The notion that "mergers and acquisitions are equivalent to failures" and "Ning is a chicken head improperly" is also the main reason that affects the integration between companies. To speed up industrial integration, it is necessary for the government to promote, but also requires enterprises to play an active role.

Under the trend of the world's largest semiconductor industry, Evergrande, and strong competition, cultivating leading enterprises is of utmost importance to China's mainland IC industry. In the “Twelfth Five-Year Plan for Development of the IC Industry”, it is also clearly stated that it is necessary to cultivate large enterprises with international competitiveness. By 2015, 5 to 10 design companies’ sales revenue will exceed RMB 2 billion, and one company will enter the world. The top 10 companies are designed; 1 to 2 chip manufacturing companies have sales revenue of more than 20 billion yuan; 2 to 3 packaging and testing companies have sales revenue of more than 7 billion yuan. To accelerate the development of leading enterprises, we should proceed from the following aspects:

The first is to create a good market competition environment. Able to withstand the market competition, Ebb Tide, companies can go longer and longer. For example, Spreadtrum, Hass, and SMIC, which have developed in recent years, have grown up in market competition with excellent technology and management capabilities. However, what is important is that the development of enterprises requires a fully fair and normative free-competition environment. The government should treat domestic and foreign companies “as far as possible” and not provide “non-national treatment” to foreign companies because of the pursuit of GDP, thus affecting the enthusiasm of domestic companies.

The second is to cultivate entrepreneurship. The development of integrated circuit companies requires the leadership of entrepreneurs. Grasping the special opportunities of China's integrated circuit industry also requires the efforts of entrepreneurs. The enterprise leaders have ambitions and ideals, and the company will not “get rich and comfortable”. The vision and thinking of the corporate leaders determine the development path of the company. At the same time, the brilliance quality of the corporate leaders will also create a team with great cohesion and cohesion. This can also be confirmed by some of the most outstanding contemporary entrepreneurs such as Ren Zhengfei and Ma Yun.

The third is to further promote industrial integration. At present, mergers and reorganizations among the international IC industry have occurred frequently, such as Intel’s acquisition of Infineon’s mobile phone chip unit, Micron Merger, and MediaTek’s merger with Mstar. The road to integration of China's integrated circuit industry cannot be bypassed, but its progress is slow. This requires corresponding policies and support. On the one hand, it integrates resources in technology and products, and breaks down a batch of common key technologies and major products; on the other hand, it optimizes the industry. Resource allocation promotes corporate mergers and reorganizations.

Whether or not you have a world-class leading enterprise is not only a reflection of the comprehensive strength of the company, but also a manifestation of the country’s overall national strength. Cultivating integrated circuit leading enterprises requires the country to formulate clear, short-term, medium-term and long-term strategies for top-level design, create a fair market environment, and provide support in the industrial chain; it also requires enterprises to grasp, apply, and develop markets and technologies. The value of core elements such as talent, capital, and funds. Only by keeping the market acumen and focusing on technology, attracting talents, retaining talents, and focusing on capital operation can companies have strong market competitiveness and can only grow into a leading company.