Securities Times reporter Zhuo Yong
' Recently, many investors are busy with two things: one is to look at the blockchain, and the other is to look at the chip. ' At a recent venture capital summit forum, an investor who participated in the roundtable discussion said. Since the ZTE incident In addition to ZTE's intention to increase investment in core chip research and development, Alibaba also announced the acquisition of Zhongyi Microsystems' layout of AI chip industry, and even Chairman of the Gree Electric Appliances Dong Mingzhu also said that 'it is firm. Not moving ', and recently announced that Gree air-conditioning will use its own chips next year. And the entrepreneurs who are chasing the wind have also joined the chip business.
This national effort to give domestic chips a 'remediation' seems to give people the possibility that China's chips will soon be overtaken. However, on the one hand, the rapid rise of industry demand, on the one hand, it is an industry atmosphere of quick success. How to face domestic chips The status quo, how to find a way to solve the pain point, how to invest in chip investment? Some insiders pointed out that the threshold of the chip industry is extremely high, only entrepreneurs and investment talents who really understand this profession may succeed. Therefore, entrepreneurs should not blindly follow Investors can't help chase the wind.
Manufacturing and materials links 'behind'
At the moment, there is one thing that plays a key role in the high-speed operation of the information society. This is a small integrated circuit, which is commonly known as the 'chip.' Chen Chuanhong, director of the major special affairs office of the Ministry of Science and Technology, said in an interview with the media. The manufacturing technology of the chip is the highest level of micro-machining technology in the world today, and it is the strategic high point of the global high-tech national competition.
However, China's high-end manufacturing equipment and materials for integrated circuits are heavily dependent on imports. In addition, the developed countries such as the United States have strict censorship and restrictions on these materials exported to China. Our integrated circuit development has been constrained.
However, with the rapid development of China's national economy, especially the acceleration of information technology, the demand for integrated circuit products continues to grow rapidly. According to statistics, since 2006, integrated circuit products have surpassed oil to become the largest imported products in China. Since 2013, the annual import volume has exceeded 200 billion US dollars.
It is understood that the chip industry's industrial chain is very long, including design, manufacturing, packaging, testing, assembly and other aspects. Compared with the United States and other Western developed countries, China's chip industry in which links are left behind? Partner and CEO Shi Anping found that the two aspects of manufacturing and materials are the biggest gap between China's chip industry and foreign countries after researching the chip industry and examining many chip-related projects.
'From the perspective of manufacturing, the investment required for this link is quite large, up to 10 billion yuan, and it is not just the problem of money. We don’t have the core production equipment needed for the manufacturing process, nor do we produce smaller threads. The technology of more sophisticated products, so high-end products can not come out. 'Shi Anping said. In addition, he also introduced, from the material point of view, a considerable part of China's high-purity silicon wafers are imported, which is why we need to make up ' of.
Although there is still a huge gap between the above two links and the international advanced level, there is one link that can catch up with overseas. This is the chip design. 'Because of the gradual opening up of the country and the increase in the number of returned overseas students in related majors, the chip design link is China and The shortest distance in foreign countries. 'Shi Anping said. However, he also admitted that from the raw material production equipment, to the inspection equipment, to the manufacturing equipment, we are lacking. If foreign countries are 'discontinued' on these core equipment, then design is good. It’s just a 'paper talk'.
After the ZTE incident, the people raised a wave of discussion and reflection. In the past 40 years of reform and opening up, China has achieved such great economic success, but why is it that a small chip is not doing well? It used to work for eight years at Qualcomm headquarters in the United States, and now Dr. Yang Yafei, CEO of Dapu Microelectronics, told reporters that in fact, China was able to produce chips on its own, but the products that were made were used for military industry, and they could not meet the standards of civilian use, that is, the price could not come, the specifications were not enough. Precision. 'The reason is that there is no way to scale production. It can only be done in the laboratory. Once you contact the factory for production, you will encounter big problems. The main problem is that the technical and talent problems restrict the mass production.
Capital
Have entered the chip industry
'When we looked at the chip project in the past few years, there was very little interest in the industry. But this year, everyone’s enthusiasm for the chip project has risen a lot, and even some investors are blindly snapped up. 'The relevant person in charge of a state-owned background investment fund The reporter said.
Some investors told reporters that their investment in chip projects has also been sought after by many investment institutions. The valuation has risen shortly after the completion of the investment. It is not difficult to find that the hottest market in the market this year is the AI chip field. The head of the field, Shangtang Technology, Cambrian, etc., has carried out several rounds of financing this year, and the valuation is very high.
In addition, various capitals including Internet giants and home appliance giants have increased their investment in the domestic chip industry. After the ZTE incident, Alibaba wholly acquired a supplier of embedded CPU IP, Hangzhou Zhongzhong. Tianwei System Co., Ltd.. At the 'Future Forum X Shenzhen Summit' on May 26 this year, Ma Huateng, Chairman and CEO of Tencent Holdings, hinted that it might design software compatible with Chinese chips and operating systems in the future.
Chairman of Gree Electric Co., Ltd. Dong Mingzhu said that Gree will invest 50 billion yuan into the chip field and will use all its chips in Gree air conditioner next year. Then Konka Group also announced that Konka Group will set up the semiconductor technology business unit and formally enter the army. Semiconductor industry.
Yuanhe origin, which has long tracked the IC industry, has also invested in the Cambrian in the near future. Le Jinxin, a partner of the company, said that as early as 2005, there was a wave of investment in integrated circuits in China, but from the industrial chain to technology to talents. To the market is not mature, only a small part of the company survived. From the development cycle of the entire chip industry, it takes two to three years to see the product prototype, and five years to do the landing and promotion. So it takes at least eight years before and after.
Overall, the high input cost, high threshold and long cycle are the characteristics of the chip industry. Zhu Xiaohu, managing director of Jinshajiang Venture Capital, said in response to outside questions that China VC is not a chip, but several previous investments. The lack of money, this makes the chip investment into a cycle of not making money. But in fact, chip investment is not necessarily a loss of business. 'It is only a long cycle, once the success is like printing money, the chip's early investment is very large, But the gross profit margin is very high. ' Shi Anping said. Yang Yafei also agrees with this point of view, Qualcomm, Intel, such a company can be confirmed.
The investment boom has triggered an industrial bubble?
The chip industry is booming. One view is that there are more semiconductor funds, fewer good projects, high valuations of industrial enterprises, and a bubble in the industry. Another view is that China's semiconductor companies are far from investing in R&D, and they need long-term funding at all levels. Investing. But no matter how you look at it, the project is highly valued, and the competition for talent is really happening.
'Now learning computer and electronic communication want to do this, there is indeed a big talent bubble.' Yang Yafei told reporters that this bubble is actually a price bubble caused by the influx of funds and related professional talent supply. The reporter also learned from some institutions that some institutions that want to enter the chip investment are not willing to attract investment managers at high prices, but these investment managers are not really familiar with the entire life cycle of the industry.
'Now the domestic level of good talents in this area is even higher than that of foreign countries. 'Le Jinxin believes that capital chasing a certain vertical industry will inevitably lead to a rise in salary levels. But in his view, promoting the development of the industry requires a tolerance bubble, if not It is difficult to attract money and eyeballs.
Shi Anping believes that no matter from technology development, talent reserve or talent reserve of investment institutions, it needs to be calm. 'First, not all chip projects are suitable for this fund investment, and not all talents need to reserve. The range of applications covered is very wide, and one institution cannot cover it all.'
As far as the chip industry talents are concerned, Shi Anping believes that on the whole, the reserve of college graduates in China is sufficient, but it needs to be exercised in practice, but the leading talents are lacking. Currently, it is necessary to introduce from overseas or encourage study abroad. Talents return to China.
The competition for good projects is not inferior to the competition for talents. 'Now many institutions come to us.' Yang Yafei said. The reporter also learned from some investment institutions that after some projects were invested, the valuation soon rose. And as long as there are good projects that are known to the industry, there will be a bunch of institutions flocking, and even the bosses who do real estate and do business want to enter. ' Objectively speaking, this is a good thing. Everyone makes up the class and realizes that this thing is The importance of the information age. ' Yang Yafei believes that this can promote the industry.
Left to entrepreneurs
What are the opportunities?
For China's chip industry, how far away from foreign countries means how much room for development. At present, the manufacturing links that restrict the development of the chip industry chain are unable to get involved because of the huge investment. In the eyes of Shi Anping, the country We should increase our efforts to support this link, and we must have a division of labor.
'The core equipment chain of the manufacturing process has many parts and many equipments. One of the parts and one piece of equipment may be a place where small businesses and entrepreneurs can make a difference. ' In addition, the application market and space of the chip are very Big, entrepreneurs can play a role in the specific chip application market.
In Lejinxin's view, the terminal market of chips is a bigger market, but there must be a certain amount of applications in the terminal. If it is a niche product, the revenue will not be worthwhile. But it is undeniable that these terminal applications are racing. The roads are basically occupied by big brands, forming a certain brand structure, leaving little space for startups, and these brands can also make their own chips.
After the ZTE incident, from the country to the place to the enterprise, they all put the chip in a very important position. Can China overtake the curve at this node? 'If we want to overtake the car, it can't be unrealistic. Overtaking the car, after all, technology needs a process of accumulation, which can be borrowed and introduced to digest, but it cannot be developed at once. 'Shi Anping said.
It is undeniable that the state has profoundly realized the importance of developing the chip industry from the policy and fund level. In addition to the large funds of the integrated circuit industry, there are also industrial funds with state-owned assets, which are fully deployed from the local to the central. Shi Anping also pointed out that this must not lack the national master plan.
In fact, some of the current wave of domestic chip investment is really hot. For example, demand is pulling, memory prices are rising sharply, and investment in chip storage is very hot. But there are still some, such as artificial intelligence, which are too small and even have production capacity. Excessive situation. Therefore, in the view of Shi Anping, the state should avoid unbalanced competition with overall planning, can not appear in a certain direction and is missing in other directions. 'The amount of investment is large, if it is unbalanced Will cause huge waste, so strengthen the layout. '