International Competitiveness Of China's Ic Industry In Mainland Study

The Integrate Circuit (IC) industry is one of the strategically basic industries of a state. Its development level represents the most advanced science and technology level and comprehensive national strength of a country, that's why it is set store by countries and global competition is arising. In the past few years, the semiconductor industry is transferring internationally. With the great encouragement of the Chinese government, the semiconductor industry in China is growing up quickly, in which 90 percent is made of the IC industry. That makes it possible for this paper to judge what level is our country's IC industry at in the world.The purpose of the study is to make it clearer about China's IC industry development and its whole level compared to the developed country. No optimism and no pessimism with blindness. Instead, this paper is trying to get an impersonally judgment of its international competition, to discover the existing problems and improve them with pertinences, and finally to find out the most suitable way to expediting the development of the industry.When analyzing, the Michael E. Porter's"Diamond Model"and the national scholar's"Round Wheel Model"are used for references. Consulting the IC industry's specialty, the study is mainly about the industrial scale, structure, macroscopic environment, distributing & centralize domino effect, elements gift, market demand, and correlated supporting industries. The research indicates that the IC industry in China mainland is focused attention upon the whole world by increasing with a far higher speed than the international average since 21st century. Its main drive comes from varieties of advantages such as the huge home market demand, lower production cost, abundant human resources, steady-going economy, ascendant policy support, and etc. Now there have been four concentrative areas of this industry in mainland, the Yangtze River delta, the Zhujiang River delta, the Bohai Sea zone, and the Midwest region, and 90 percent of the sales income is gathering in the former three ones. Currently it has formed a coordinate development structure of design, manufacturing, and encapsulating & testing, and the technics of the manufacturing has come into the international main stream, design and encapsulating technology approaching the international advanced level. While eyes on the world, the IC industry of China mainland is still at a puny station, far behind the IC great power such as America and Japan for its instability, small scale, low technics level on the whole, lack of innovation, lagged supporting industries of equipment and semiconductor material, main products focusing on mid-range or low end market, and lack of well-known brand and dominant enterprises. The pivotal problems that we affront are short of persons with high ability as well as money, and distinct conflict of demand and supply. To get these problems solved, innovation and government support is necessary, the former including independent innovating and in-draught absorbing, and the latter including system reforming and policy perfecting. At present the IC industry is transferring to Asia-Pacifica area especially to China mainland. As a big opportunity besides the huge market demand for us, we need to take the current advantage, meet challenges coming with the global economic integration such as non-trade barrier and intellectual property rights dispute, and make full use of comparative dominance to increasingly improve the international competition of China mainland's IC industry.