ICs are the core industries for the development of national information technology and are the lifeblood of the country’s economy and security. Since April, stimulated by the US sanctions against China’s ZTE, China’s wave of IC industry investment boom has begun. Hunan, Yunnan and other provinces and cities, Ali Baba, Evergrande and other companies have entered the semiconductor industry one after another. This Xiamen investment of 50 billion yuan in the integrated circuit industry has played a catalytic role in the development of the industry.
China attaches great importance to the development of the integrated circuit industry and incorporates it into a strategic, basic and leading industry that supports economic and social development and safeguards national security. In 2014, the State Council issued the “Outline for Promoting the Development of the National Integrated Circuit Industry” to propose an integrated circuit. The growth rate of sales and the level of manufacturing processes have set development goals and supported relevant support measures. A series of industry support policies that are now seen are all under the guidance of this outline to support specific measures.
Overall, China's integrated circuit industry is still in its early stages of development. According to ICinsights' data, the self-sufficiency rate of ICs in China was only 10.4% in 2016. According to China's integrated circuit output CAGR 28.5%, China's self-sufficiency rate could reach 15 in 2020. %, still at a relatively low level. From the perspective of import and export data, China’s IC import amount has been much higher than the export amount for a long period of time, and the difference has continued to widen. In 2017, China’s IC import amount was US$260 billion, and its export value was nearly US$669. The net import value reached 193.2 billion U.S. dollars, a year-on-year increase of 16.4%. From the perspective of import substitution, the willingness and demand for IC autonomy are extremely urgent.
Under the impetus of policies and import substitution, leading companies will continue to benefit, A-share listed companies related to Changchuan Technology (300604.SZ), Ziguang Guoxin (002049.SZ), Jiangfeng Electronics (300666.SZ) and Branch Shuguang (603019.SH) deserves attention.