Semiconductor Material and Device Innovation Need Policy Support

From 2010, China integrated circuit market has come into a new wave of growing. But in next years, the industry will grow not as fast as proceeding years but at stable pace. It is anticipated that the growth rate of integrated circuit market will remain 10 percent in next three years. Therefore, domestic firms should seize chances to strive for innovation on crucial material and devices to serve domestic demand.

According to the report of SEMI, the revenue of China mainland semiconductor devices was 2240 million dollars and predicted to be 2640 million in 2011. By 2015, the revenue will be reach 30 billion in accordance with the growth rate. Some industry insiders analyzed that during the Twelfth Five Plan period, with forceful policy support for new industry, it will bring historical development chances for semiconductor devices industry.

Analysts pointed out that as the result of stimulation from government subsidy and market demand such as LCD TV backlight and general lighting, from 2009 to 2014, China LED market has doubled with CAGR 12.8 percent. Power semiconductor is widely adopted in household appliance, computer, automobile or railway areas. Due to increasing wide application of semiconductor devices, the related devices will keep amplifying and growing at stable pace. The market scale of power semiconductor is forecasted to achieve 36.8 billion dollars. Equipment and materials firms will make a good achievement in these areas.

In fact, domestic semiconductor devices and material enterprises are still less competitive so that forceful government support is necessary. With regard to semiconductor material industry, tariff rate for importing polysilicon is 2 percent and silicon is free. As the result of weak in technology, China has no producers of some crucial materials so that only rely on importing. However, high tariff rate leads to great burden for silicon firms which are not conducive to the development of the industry.

Therefore, enterprises should cooperate together and ride the trend of market to quicken the pace of construction integration and reinforce the investment on research and development. Plus, government should support enterprises on innovation system and provide financial support. The related integrated circuit is LNK304PN.