Mo Dakang: Are trade wars ready to start?

The current development of the semiconductor industry in China emphasizes the emphasis on strengthening R&D and protection of intellectual property rights. They are the foundation and must not be shaken. However, this does not prevent us from developing our industry through mergers and acquisitions, or joint ventures and cooperation. Recently, according to Taiwan media reports, In order to meet the needs of industrial development, Ziguang Group's Yangtze River Storage Group intends to join in with Taiwan's manufacturers, such as Group Alliance, Silicon Products, and Nanmao, to form a major alliance for the memory industry. If the two banks can join hands in the development of the memory industry for the first time, I believe it must be a double. Embarrassing situation, the goal is to break the monopoly position of South Korean and other South Korean manufacturers, and into the supply chain of Apple's memory. -Moda Kang 2 May 2018

The opening of this trade war was initiated by the United States. China has no way out and must face resistance. The future of China's semiconductor industry is difficult to predict, but the situation may be relatively complex and long-lasting.

The 'ZTE Incident' once again stimulated the development of China's semiconductor industry to take a 'autonomous and controllable' path. If there is still some hesitation before now, we now have no choice but to overcome even the greatest difficulties.

The essence of the trade war is mainly because the United States will continue to promote its 'unilateralism' in an attempt to suppress the rise of China or to fear that China’s strength will increase. However, the situation has been very clear, and China’s rise and progress are irreversible. At most, it can slow down our process.

As the crisis of the ZTE intensifies, the development of the semiconductor industry in China is also facing opportunities under pressure. Mastering core technologies can only rely on themselves, and requires solid inputs and scientific decisions. It has become the consensus of the government, enterprises and society. .

However, according to the particularity of the development of China's semiconductor industry, production of high-end chips such as hard-to-manufacture chips, CPUs, and memory chips is more difficult to manufacture, and the cultivation and growth of the chip-making eco-industrial chain can be said to be even more difficult.

The "Chinese independent chip" is like a dream that has been repeated for many years. In the past two or three decades, it has been repeatedly mentioned by people and lost again and again. This dream is again presented. But it must be sober. What will change is that it will be possible to succeed. And the Trump administration’s crackdown on ZTE has objectively increased the sense of urgency for industrial development.

What are you ready for?

Lose all illusions, rely on their own strength, to strengthen research and development. Although R & D is a very risky and difficult thing, it is the right choice before the Chinese semiconductor industry. In the two-wheel drive of capital and technology, pay more attention to advanced process technology. With product breakthroughs, industry development is more focused on inclusion and efforts are being made to close the gap.

At this stage, the strategy is still based on government funding, aimed at improving the company's profitability and competitiveness. However, industrial development must gradually transition to marketization to allow companies to win in the global competition. At the same time, the government's leading role should be gradually The reduction is more to allow the market to drive the progress of the industry.

It is a long-term process to achieve the self-controllability of the chip. It can't be 100%, and the key is to have the ability. Local substitution of the chip is an important step for independent control. It is necessary to gradually promote the planned classification. There are several things that we cannot do without, such as chip foundry in Taiwan, Korea, memory and display in Korea, silicon wafer material in Japan, etc. The so-called inseparable, it is not that others will not do it, but we Doing the best, the cheapest, and others not using it, you may lose competitiveness.

Turning the ZTE incident from a crisis into an opportunity is not a simple one. It needs to have a sense of morale and spirit, as well as putting national interests in the first place and down-to-earth efforts to overcome one difficulty after another. Only in this way will the results be achieved.

'Lack of core and soullessness' It cannot be solved with only a small amount of money. It needs the support of human resources, technology and time, and the cultivation and growth of the eco-industrial chain. Therefore, it is necessary for the Chinese semiconductor industry to understand To improve, it cannot be expected to achieve comprehensive improvement and resolution in the short term. It needs to persist, persist, and remain unshakable in policy. Continuous strong investment, especially in the semiconductor industry, should be quiet and less profitable. The establishment of a winning faith, etc., is the only way out.

The current development of the semiconductor industry in China emphasizes the emphasis on strengthening R&D and protection of intellectual property rights. They are a foundation and must not be shaken. However, this does not prevent us from developing our industry through mergers and acquisitions, joint ventures, and cooperation. Recently, according to Taiwan media reports, In order to meet the needs of industrial development, Ziguang Group's Yangtze River Storage Group intends to join in with Taiwan's manufacturers, such as Group Alliance, Silicon Products, and Nanmao, to form a major alliance for the memory industry. If the two sides can join hands in the development of the memory industry for the first time, it is believed to be a double. Awkward situation, the goal to break the monopoly of South Korea and other South Korean manufacturers, into the Apple memory supply chain.

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