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Inward investments boost China's chip production

Posted: 18 Oct 2013 ?? ?Print Version ?Bookmark and Share

Keywords:China? chip production? investments? LED?

According to The Information Network, there has been a surge in the production of chips in mainland China. The research firm also reported that the production of ICs in the country is set to stand at 31.9 per cent of the country's consumption in 2013.

Over the recent years, indigenous and inward investments moved China closer to the leading edge of production technology. As a result of those investments, mainland China has produced 86 billion chips in 2012. The Information Network predicts that by 2015, Chinese production will be equivalent to one-third of its domestic production.

Many of the fabs built recently were for LED production to accompany the global move away from incandescent light bulbs and investment has been lumpy.

Many fabs were recently built for LED production to accompany the global move away from incandescent light bulbs. However, investment has been lumpy. According to Robert Castellano, president of The Information Network, China's IC capacity only increased by 2 per cent in 2012.

However, investment is likely to increase again as foreign investors that have set up fabs in China and achieved success are motivated to reinvest. Samsung is in the process of investing $7 billion in Xi'an in Shangxi Province for NAND flash memory production and SK Hynix is investing a similar amount in its wafer fab in Wuxi. Intel spent $2.5 billion on wafer fab in Dalian about two years ago, Castellano said.

"Memory, CPU, ASSPs, and analogue ICs are the top four IC device types manufactured in China, making up more than 70 per cent of ICs made. Automotive electronics, smart card and computer products are rapidly expanding applications for these ICs," added Castellano. "By 2015, a more than a third of China's IC needs will be met internally."

- Peter Clarke
??EE Times





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