Datang Cao Bin

In order to promote the accelerated development of the integrated circuit industry, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology, and the Ministry of Finance have compiled the “Outline for the Promotion of the National Integrated Circuit Industry Development”, which is formally approved by the State Council for publication and implementation. As the most authoritative media in the field of integrated circuits, China Electronic News, as the Ministry of Industry and Information Industry in charge of the sector report, has invited industry experts and practitioners to interpret the "Outline" and talk about the development of China's integrated circuits. The following is a special manuscript written by Cao Bin, Chairman of Datang Telecom Technology Co., Ltd., for this newspaper.

In recent years, under the market pulling and policy support, China's integrated circuit industry has developed rapidly and its overall strength has significantly improved. However, problems such as “the lack of core technologies and the difficulty of products to meet market demands” that have constrained China’s integrated circuit industry to become bigger and stronger are still outstanding. In addition, at present, China's integrated circuit companies are generally small-scale and dispersed, which also restricts China's integrated circuit industry to become bigger and stronger. For example, in 2012, the total sales of the top ten IC companies in China were only RMB 22.6 billion, while the number one ranking of Qualcomm’s companies in the world has reached USD 13.18 billion. In 2012, the number one company in China was nearly 9 times different from the world’s largest TSMC revenue gap. However, judging from the trend of changes in global integrated circuits in recent years, more and more IC companies have shifted their future market focus to Asia Pacific. This time, the release of the "National Outline for the Promotion of the Integrated Circuit Industry" shows that the country attaches great importance to the integrated circuit industry and believes that there will be more favorable policies for the follow-up.

Cultivate integrated circuit leading enterprises

At present, the integrated circuit industry is shifting to the entire industrial chain, resource integration and mergers and acquisitions have entered an active period, and mergers and acquisitions are becoming more and more dynamic. The country has always attached great importance to the integrated circuit industry, and has continuously increased its policy support. Under the situation of the global semiconductor industry, Evergrande, and strong and united competition, cultivating leading enterprises has become very important for the mainland China's integrated circuit industry. .

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. The United States has Intel, Qualcomm, South Korea has Samsung, Taiwan has TSMC. Although China's mainland integrated circuit industry has achieved rapid development for many years and a number of high-growth and dynamic emerging companies have emerged in various areas of the industry chain, it still lacks leading enterprises with international competitiveness and leading the development of the industry.

Whether China can have a world-class leading enterprise is not only a manifestation of its comprehensive strength, but also a manifestation of the nation’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. , talents, funds and other core elements. 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.

Faced with the new situation, Datang Telecom actively responded to the national IC industry strategy in a new era. It focused on the principle of scale, centralization, and platformization to gather company capabilities and integrate industrial resources. In March this year, it invested in the establishment of IC design. The unified platform for industrial development, Datang Semiconductor Design Co., Ltd., and through the strengthening of the basic resource sharing platform, supply chain and CBB construction, integration convergence business, focusing resources on financial security chips, 3G/4G terminal chips and other core businesses.

In terms of its own capabilities, Datang Telecom has a good foundation. The company established Datang Semiconductor and established a unified industrial development platform to achieve integration and industrial chain collaboration. On the one hand, it exerts scale advantages, focuses on core businesses, enhances organizational effectiveness, makes up for technical shortcomings, and strengthens the construction of basic resource sharing platforms to achieve cost reductions and scale of revenue. On the other hand, we will continue to give full play to the advantages of Datang Telecom IC design, software and applications, terminal design, and the entire industry chain layout of mobile Internet, and strengthen the interaction between chip design, terminals, and application business, and give full play to the industrial chain collaboration. Advantages: Strengthen industrial chain cooperation, achieve coupling and linkage between chip design, manufacturing, and overall machine, reduce overall costs, and improve industrial competitiveness.

In addition, Datang Telecom will accelerate mergers and acquisitions within the industry. Integrated circuits are typical technology and capital-intensive industries. They have developed rapidly, are highly competitive, and are characterized by global competition. At present, mergers and acquisitions and reorganization have become an important means for China's current integrated circuit industry to become bigger and stronger, and coordinated development of the industrial chain. The driving force for the vigorous development of China's integrated circuit industry comes from the continuous improvement and optimization of the industrial environment. Datang Semiconductor Design Co., Ltd. will be the unified operation platform of Datang Telecom's integrated circuit design industry, accelerate the pace of mergers and acquisitions, and quickly complete the existing short board, making the company a world-renowned and leading chip design and solution provider in China.

In general, the integration of the integrated circuit design industry of Datang Telecom firmly grasps the direction of national policy guidance and support, which will help the company to further enhance its competitiveness and market position in the integrated circuit design industry, making the company's integrated circuit design business a concerted effort. It will help the industry to become bigger and stronger, enhance its competitiveness in the industry, and achieve the top three strategic goals of the domestic integrated circuit design industry in the next five years.

Adhere to the demand-driven innovation drive

In the next few years, China's integrated circuit industry will continue to grow bigger and stronger. It should also adhere to the concept of “demand-driven, innovation-driven, capital-driven, and industrial-integration” and adopt an open mind to develop the integrated circuit industry. After decades of rapid development in China, China has already possessed a number of system companies with strong capabilities, and also has a number of terminal companies with strong innovation capabilities. The large number of market requirements in the terminal application segment has provided excellent development for the industry. With regard to development opportunities, China must seize this opportunity to make up for the shortcomings in the industry chain, and guide the integrated circuit industry to become bigger and stronger quickly, and to promote the ecological environment of the sound cycle of integrated circuit industry and system terminal industry.

The integrated circuit industry is currently the strategic commanding point for major countries or regions in the world, and innovation is very active. Micro-processing technology still follows Moore’s Law. The rapid development of strategic emerging industries represented by mobile Internet, triple play, Internet of things, cloud computing, energy conservation and environmental protection, and high-end equipment will become a new driving force for the development of integrated circuit industries following computer, network communications, and consumer electronics. The combination of multiple technologies and multiple applications has spawned new integrated circuit products. At the same time, with the development of information technology to the development of sensing technology and energy-saving technology, MEMS sensors, semiconductor power devices, etc. will also usher in the opportunity of great development.

For Datang Telecom, in the future, Datang Semiconductor will be used as a unified operating platform for the company's integrated circuit design industry, further strengthen cooperation with industry and industry partners, and target emerging industries such as mobile Internet, Internet of Things, cloud computing, and big data. Focusing on smart terminal chips, security chips, automotive electronics chips, and other business areas, taking chip design as the core, enhancing core competitiveness and giving full play to its innovative advantages, it provides differentiated, cost-effective chips for government, industry, corporate customers and consumers. And solutions.

Create an industrial development ecological environment

Create an ecological environment suitable for industrial development

It is also very important for the growth of the IC industry. As the global integrated circuit industry enters a new stage of “oligopoly” and “oligopolistic alliance”, the industry’s threshold is getting higher and higher, and the demand for funds is increasing. For IC design companies, they will be able to stand up to the long-term ebb and flow of market competition. For example, Datang Telecom’s Datang Microelectronics and Lianxin Technology have grown up in the market due to their strong technology and management capabilities. We have created an industrial eco-environment, promoted the joint development of the chip and the whole machine through policy support and other means, and created a large chip-to-machine industrial chain. At present, China's self-developed chip products are difficult to squeeze into the mainstream chip market of the main machine, resulting in the disconnection of the chip link from the key machine. As a result, the integrated circuit industry and the complete machine industry basically do not form mutually supportive positive interactions. Therefore, the development of China's integrated circuit industry must be combined with market demand, and a large ecological chain must be created. With the needs of the system, the integrated circuit industry is integrated into the electronic information industry, and the combination of software and hardware of the electronic information industry chain is the goal. , to promote the benign interaction of small ecosystems such as integrated circuit design, manufacturing, and packaging. Combining the needs of the entire machine in the chip design process to enhance innovation and enhance the competitiveness of the entire system, in the process of upgrading the entire machine, the capabilities of the existing chips and the gaps between them and the applications are fully taken into consideration, so as to guide the targeted R&D of the chip design and open up The path from integrated circuit products to system applications.