On March 23, 2018, Guokejia and the 2017 Partner Conference were held in Beijing. The current session focused on the investment layout of Guo Kejia and the fund in the transfer of scientific research achievements of the Chinese Academy of Sciences. Famous experts and scholars of the Chinese Academy of Sciences were invited to share this field. With the development trend and investment hot spots, Guo Kejia and the scientific entrepreneurs of the Chinese Academy of Sciences also enthusiastically discussed the industry development trends and entrepreneurial experiences.
At the meeting, Mr. Ye Tianchun, Director of the Institute of Integrated Circuit Innovation of the Chinese Academy of Sciences, Director of the China Institute of Science Microelectronics, and Director of the Internet of Things Research and Development Center of the Chinese Academy of Sciences delivered a speech titled "Repositioning China's IC Industry."
The following is a record of the speech, meticulously organized (with deletions) by Pinto Business Review:
Thanks! Guokejia and the fund are the funds in our institute. Let me talk about integrated circuits. The two conferences have just finished. The government work reports that the first in the development of new industries is the first integrated circuit.
China must win the real world power and must win this industry.
Everyone knows how important steel is in our country's industrial era. All industrialization needs steel. After the founding of our country, we use steel as our symbol.
Looking at the country’s development process, the increase in steel production is accompanied by the rapid development of GDP, which supports the industrialization process of the entire country in the past 20 years and 30 years. The era of industrialization has passed, the 30th and 60th years are the information age, and now it is from information. Into the era of intelligence. What is the most important product in this area? Is the chip.
The chip is commonly known as everyone. It is an integrated circuit. It requires a lot of design. With the advent of the information age, the chip (integrated circuit) has become the largest imported product in China. In the information age, the overall informationization of our country has progressed. The chip is a short board, just like the lack of steel in the industrial era.
China now has the world's largest electronic information manufacturing industry. Globally, 70% of smart phones, 80% of computers, and more than 50% of digital TV are made in China. Putting these together, the scale of electronic information manufacturing in 2016 It reached RMB 12 trillion, exceeding RMB 10 trillion in 2009, but industry profits never exceeded 4% or 5%. In 2016, the industry's total profit was RMB 600 billion. The reason is that all chips are imported. Modern information technology, regardless of consumer products , High-end products for communications, all core intellectual property competency depends on such a carrier as chips. China's so-called global-scale information manufacturing industry is actually the world's largest electronic information product assembly industry. The core stuff is people's , What you earn is a hard money.
We are now in the supply-side reform structure, and we have a lot of production capacity. However, in this chip industry, we have a huge capacity gap, and design, manufacturing, and equipment are huge gaps.
Now that Chinese manufacturing has established a brand in the world, we are talking about the four new inventions in China. High-speed railways and power grids are now being built. Aircraft in the aerospace field are also being built, but our chips, including chips, are Equipment is still dependent on imports. Look at this time again. Only when China takes this industry, can we truly become a world power.
China's IC industry development: RMB 100 billion R&D, RMB trillion investment, and the next decade is the golden age of development
The Nineteenth Congress proposed that we should initially establish a modern socialist country in 2035 and build a modern socialist country in 2050. Therefore, three of the 16 major projects in the national science and technology research and development program are integrated circuits, and each special project is worth 100 billion yuan. Budget investment around the scale. Major aircraft, relatively well-known large aircraft, nuclear power, manned space, and the Beidou. Not much attention before, recently began to pay attention to the integrated circuit. Also released the "National Integrated Circuit Industry Development Promotion Program." Now The first phase of the National IC Industrial Investment Fund has been raised, and the second phase is being raised. These have their own internal logic.
The state will do 'technical preparation' after 'developing and preparing for R&D', building a technological system from scratch, and 'investing in industrialization' after technology accumulates. The entire industry can be done. Industrial investment must be at least ten times larger. , so our country is preparing a trillion-scale investment in the integrated circuit industry to go. One hundred billion level R & D trillion-level investment, so set up a national integrated circuit industry fund. This fund I remember is the country's largest, now It was also particularly large. It had originally raised 120 billion yuan. As a result, it has raised 138 billion yuan. The first phase has already been invested. Now the second phase is 150 billion to 200 billion yuan. At the same time, it drives local capital investment. Now China's integrated circuit industry has entered the three-chain 'industrial chain, innovation chain. , The financial chain's integration phase, the next decade is the golden period for the development and development of China's integrated circuits. China's integrated circuit industry continues to grow, maintaining double-digit growth.
Now we start from a relatively scattered point of things to form a technical system, and through the technical system to establish the industrial system, the industry ecosystem is slowly established, and then through the investment of the national industry fund to bring our local social capital investment, The entire industry’s strength began to increase. We have gone from designing to manufacturing, and we’re still a generation or two behind the world, but are we afraid? Now that we have our own equipment, our own materials, our craft has started to develop our own intellectual property. Now that it is also a system, there is more emboldenedness, and each industry sector can compete with the international community.
In the past two years, the acquisition of overseas ICs by Chinese capital caused a big sensation. Trump recently announced that it has restricted the investment of Chinese capital and focused on restricting investment in semiconductors. At that time, Section 302 was issued to investigate China’s intellectual property rights. Why do we compare? On the one hand, we buy advanced chips that are not sold to us. They are not sold to us. We invest ourselves. They say that they cannot invest. You can disrupt the market. This is unreasonable. This time we of course condemn imperialism for not speaking theory. But one thing to look at is that when your policy decides to make your opponent a bit confused, your decision is right. Therefore, this must be done steadfastly, including doing mergers and acquisitions. Behind the support of the industrial system. If through mergers and acquisitions, through integration, the industrial system can be truly unstoppable. In the local equipment industry, the local material components have natural advantages, the market is close, the service can keep up, and the consumption is up. The product, so this can be done, this is the reason that foreign governments and companies feel nervous.
China's re-leader in the industrial development industry: To be able to define products, this is the most important initiative
Why do we call China a leader in the industrial development industry? Our current position: Low-cost manufacturers are essentially alternatives. But the industry will soon pass this time. What will be the next step? Innovation must be able to provide technology Solutions, innovation, ability to define products, this is the most important dominating power. If you have the dominance, you can't do everything yourself, so you can organize global resources to solve our problems. Future Integrated Circuits This industry needs to go out. I believe a considerable part of China’s industries will also have to go through this stage. At that time, we will be able to claim the socialist modernization power and lead the development of the world. Of course, this is a relatively macro concept.
How innovation will innovate? Going along the technological route, Moore’s Law is an innovation, but also looking back at the market, Chinese consumers have begun to define products, and the Chinese market has begun to lead the global market. This is a change we need to consider. Problems. With the advent of intelligent times, we have a lot of revolutionary changes. We need to do value innovation and solutions from the perspective of applications. This industry itself is also like this, and the global industry is Chinese. This industry is making up costs, Doing service is now a solution. China should not take people's solutions. It should be our own solution. After taking ownership, we should boldly ask for partners. In this case, the global industrial structure will change. Innovation leads. Through this path, a change in innovative ideas depends not only on the technology community, but also on the industry. It also depends on how we should do this in the financial sector.
Finally, we conclude that China's integrated circuits already have a relatively complete system to do. The next step is the issue of business integration. Here we place special emphasis on the model of independent innovation and international cooperation. Investment companies must not move companies to China to become Chinese companies. You should invest in yourself and go out and turn yourself into a multinational company. If you go to an overseas market to buy, because his price-to-earnings ratio is relatively low, then buy it and make several times the difference. This is a typical speculation, which is for the entire industry. Investment is destructive. This is not worth promoting from the perspective of industry and technology. It must be developed in the long-term, because this industry is a highly globalized industry, the Chinese market is the international market, and the Chinese industry is also an important part of the global industry. In order to occupy the dominance, we must have an international perspective to move forward. Let our locally-developed companies become internationalized transnational corporations and companies as soon as possible to realize the real transformation and upgrading of our country. In the corporate world, the industrial sector has to do A point, and this can not be separated from the support of capital, especially the cooperation with international capital can be done .
Institute of Microelectronics of the Chinese Academy of Sciences: Willing to enter the middle and early stage, like Guokejia, and willing to cooperate with VCs deep in the industry
The Institute of Microelectronics of the Chinese Academy of Sciences supports the development of local economy according to the plan of the Academy of Sciences. Therefore, there are built platforms for mutual development. Now that the results have been hatched, Guokejia and the Fund recently voted for two companies in which Microelectronics holds shares: And Zhongke Xinwei Te. Microelectronics companies now share 103 companies. The results of the transformation of the company, the team basically got the investment, but we are all brands in the Division.
We have always followed the management of the company's management. All of our rights and interests are not high. The company's assets have been growing, sales are also growing, and 100 companies have sold less than 4 billion yuan. All of them are just starting up. This basically follows Two levels of management. One level is called exploratory stage, that is, just set up market instability, products do not come out, In a word: There is no fixed cash flow, this time we think they are exploring. To stable growth stage, cash flow stability is a Signs, team stability is a sign that market-oriented products accumulate to a certain foundation, and then this time will soon enter A round, B round of financing.
With so many companies, we have found that we also need to participate in investment funds. We used to invest in others. We found that investing in large amounts of money into the industry was accompanied by considerable blindness. We did not understand the project and did not understand the industry. In particular, there is no post-investment management service. In fact, we have advantages in this industry. First, the industry is more clearly seen, the product technology is more clearly seen, and the most important are some start-up companies. Early-stage companies need counseling and also need resource integration. With the platform of the Institute of Microelectronics in the past, he helped him integrate industry resources and help him to replenish the team. Of course, we have a little more funds with local governments. We all occupy small shares in GP, as technical support providers Go ahead.
In short, this industry now hopes that everyone will have an understanding and is also eager to welcome everyone to join this industry. The future space for this industry is very large. The country attaches great importance to it. Resources are also available. There is a lot of room for policy. There are many opportunities inside.
Coca-Cola and such funds are willing to enter the middle and early stage. We are very willing to collaborate with these VCs who are willing to deepen their cultivation in this industry. The early middle income is the slowest, and the most important is that you are fished in front of you and you can earn it later. To the money, as a research institute, we can be with you to make you very professional. Of course we also become more professional. We understand finance. You understand integrated circuits. We hope to have more cooperation opportunities in the future.
Of course, today’s speeches are purely my personal point of view. Sometimes technologists do not pay much attention to their senses. Somewhere they say something wrong, please criticize and correct me. Thank you!