The topic I am talking about today is to develop the semiconductor industry must work hard for a long time.
First, we take a look at the market situation facing the industry. There is a landmark event that will take place. It is actually 5G. The rise of a new generation of information technology is also a huge driver for the upstream IC industry. When does it take to see when the governments of various countries issue licenses? After this license is issued, large-scale networking can take place. The networking process may take a year or two. After the networking, there will be a large number of Industry. Before the arrival of 5G, I think the market facing the semiconductor industry is not so hot, at least not as much as some people say, because new things are not produced, where will it go hot. Why China is so hot? China's The heat means that other countries are not hot. Now China is building a production line. Everyone think about it, or stand taller to see it, do we see factories in the rest of the world? No. Overall, the market is not very big. The growth, but if we don't prepare now, this market will not be a Chinese company after two or three years. So now it is actually our semiconductor company. The best preparation period for the electronic information industry to flourish after the industry meets the arrival of 5G. This is the current market situation we are in.
For this hot situation, I think there are different approaches and different results. For example, what kind of attitude we take as a chaser and what kind of attitude we take is whether we say it first or do it first. After that, each company has its own practice. I think you need to do it in a high-profile manner. Of course, this is your right, but at the same time boosting your confidence, it may also increase the disobedience of others. Another attitude is low-key and it is actually done. We believe that After a long period of hard work, this industry will succeed. I personally support the latter.
The second point is to talk about my views on this industry trend. I have been working in the field for the past three years. I have been asking such questions. How many new business models can be generated in this industry? The old business model will have new ones. Has the company emerged? I have been asking myself, asking leading figures in the industry, experts, I’ve been asking our suppliers recently, I’m saying that in addition to the existing CPU, memory, which product will be the IDM business model in the future, they The answer to me was no. It seems like a trend for system companies to do their own design. For example, Apple, Huawei, ZTE, Xiaomi, etc. All of them are system companies that are designing their own integrated circuits but basically do not manufacture them. Another trend is that the previous IDM business was dismantled into Fabless or Fablite. This trend seems to be continuing. It means that IDM companies will not be able to do it after they do it. In this trend, more will be in the future. After a strong and large system company has joined the ranks of IC design, this is indeed a serious challenge for companies that are simply doing IC design. This is what I see.
The third point is that the government is very busy now. The government is already very busy. It has been particularly busy recently. It was caused by the United States taking the initiative to fight a trade war with China. I also have a little thought on this urgent matter.
I personally think that there is absolutely no winner in the trade war, so I oppose the trade war and firmly oppose it! I feel that in the name of the Semiconductor Industry Association, we should work together with relevant U.S. associations and companies to stop this unfair behavior. Commonly used in trade warfare. For example, the U.S. recently used the tariff, if one looks at the tariff increase, because the integrated circuit has a special agreement, “ITA”, which was already in place before China’s accession to the WTO. The countries that basically have semiconductors and integrated circuits have joined this agreement. This agreement has always been covered from the upstream to the downstream of the industrial chain. It is a zero tariff. The result of the trade war is that the government receives a sum of money, but you add. After the tariff, the price is raised, the products distributed to the downstream, and finally passed on to consumers. Because the integrated circuit will have an impact on all industries, this shift will inevitably cause the global economy to vibrate, there will be no winners. Of course there can be other Means, other means will certainly hinder the market of common competition, there is no good result. So I The US government resolutely do not agree to fight trade wars behavior.
Fourth, China's semiconductor industry still has a long way to go. We should correctly look at our difficulties and problems. Only by clarifying our difficulties and problems can we truly take a step-by-step approach.
At least there are a few major problems. The first one of our competitiveness is still very weak. I very much agree with Mr. Ju Long's speech at the recent short meeting. We have had many exchanges in his opinions. I have also had profound exchanges. I am very Agreed. The competitiveness of China's semiconductor industry is very weak. We don't have very strong companies that can compete with outstanding companies in the world. China has so far not had the top 20 global companies because competition depends on market players, that is, companies. In terms of competition, we do not even have the top 20 companies to be regarded as powerful. The specific subdivision areas, CPU, we basically do not have; logic circuit volume is small; memory is building companies, products have not come out; equipment, The enterprises of materials are even weaker and weaker. From the perspective of subdivided fields, our competitiveness is insufficient. Therefore, we cannot say that we have sufficient competitiveness. The second is the decentralization of resources. The development of China's integrated circuit industry is not concentrated enough, especially the main body is not Concentration, resources are decentralized. The third is excessive publicity, which has caused some countries to be alert to China. It still requires solid work, hard work and excessive publicity will only Bring more obstacles.
Fifth, what do we do? There is no short cut to fulfilling our mission. I have formed a 'three five to ten years' perspective from the previous year. I just said that I represent the industry association to talk about the Chinese semiconductor industry. According to the breakdown of the industry chain, we can use five to ten years to make China's integrated circuit design and packaging industry a relatively technical content. As long as we work hard for a long time, it is possible to achieve it. A little longer, ten to fifteen years, pushing our manufacturing and some of the materials industry to a relatively high level, this is also possible. About IDM, businesses that start doing IDM now need ten to fifteen. Year of the year, because the most advanced companies have also come this way. Do you mean to go faster than others? I don't think so. As for the key equipment manufacturing industry, I put the time between twenty and thirty years. Even if it takes 30 years, China will not necessarily be able to make the most advanced semiconductor equipment in the world. But we always have a goal. We have to achieve it. We have some in this field. Breaking can be considered successful. The industry itself is internationalized. Until now, no country has dared to say that this industry is leading from beginning to end. If we have worked hard for 20 years, we will push China’s semiconductor industry In the position of certain competitive advantage, there are some companies that have established themselves in the international arena. Even if they succeeded, we must start from the beginning to the end with technology, innovation, and research and development. In fact, we must be people-oriented. Such a process is very long. I again called on the government to support it for a long time. Just now the CEO of TSMC Nanjing stated that he actually advertised Nanjing and Jiangbei New District, saying that the local government is very supportive, and that three years, as always, leadership has changed or supported. But I It is not enough to say that three years is enough. It takes five years, eight years, ten years, and fifteen years. Without such sustained support, the industry can't get up.
Sixth, I represent an attitude on behalf of industry associations. The industry association has to do three things. The first one is to cooperate with the industry and enterprises and do some supplementary work because the main body of the market is the enterprise. The industry association should play its role, Must do things that are beneficial to companies and industries, such as information collection and provision, such as industry consulting, such as the development of international markets, industry associations to help litigates in international disputes, training in the training of talents, and The formation of consensus in the industry depends on the coordination of industry associations. I feel that doing these things well, or doing a few of them well, is very good for industry associations. It will get the support of companies, welcome and Trust. The industry association itself serves the enterprise, and it is to be the assistant of the enterprise and cooperate with it. Of course, it also needs to serve as a bridge between the government and the enterprise. Therefore, the second is to strive for long-term national policy support. This is also The third thing that the trade associations must do is to study some forward-looking major issues, do a good job in industrial planning, and make timely adjustments and adjustments. Because this It is not necessarily that the plan has been made to be accurate, but the change is very large. Therefore, an industry should be planned to carry out comprehensive tests, modifications, adjustments every year or a year or two. These are the jobs that the trade associations should do. We hope to obtain With the support of enterprises, we must learn from overseas excellent industry associations and do a good job of our work. Let our industry associations and our companies grow together. We will continue to work hard to help the industrial players develop better.