The Integration Of Government Policy, Finance Into Development Of Chinese Semiconductor Industry

In the modern information society, semiconductor technology as the coreof a high-tech information industry strongly drives the development of otherrelated industries and the upgrading of their structures as well. The level ofthe semiconductor industry is directly related to the level of scientific andtechnological development of a country or a region. It is a status of thestrength and power of nations or regions. After development last few years，under driven by the huge market demand, the international semiconductorindustry has been gradually transferred to the Chinese mainland. Localsemiconductor industry has rapidly grown up and made certain progress, withbenefit strong market demand and active support from government. AlthoughChina has become the largest semiconductor consumer all over the world, thelevel of local semiconductor industry is still far behind the advanced level inthe world. Chinese IC industry has good opportunities for development, butalso faces the enormous challenge in the global competition. We need tothink about the future development of Chinese semiconductor industry. Through analysis of the history and experience of the well-developedsemiconductor countries and regions, we hope to explore how governmentpolicies and financial policies can support the development of Chinesesemiconductor industry under local special national conditions.The thesis consists of five chapters. The first chapter explains theimportance of the semiconductor industry on the development of the globaleconomy. Based on the historical statistical data, it presents the correlation ofthe semiconductor silicon cycle and world economic cycle. Additionally, thesemiconductor industry structure, and the changes of the value chain ofsemiconductor have been also described. The second chapter reviews thesemiconductor industry development process of United States, Japan, SouthKorea, Singapore and Taiwan. Therefrom we can find the indeliblepromoting role of the government policies and the financial system for thedevelopment of semiconductor industry. Ch.3presents the characteristics ofthe high-tech industry and its financing requirements at each developmentstage. From the point of view of the financial institutions, the possibility ofvarious financial institutions to support the development of high-techindustries is also discussed. Ch.4is a more detailed analysis of the status ofChinese local semiconductor industry. It describes the initial cluster effect ofthe semiconductor industry in China, and applies SWOT method to analysis IC design industry in China, and applies five forces model to analysisChinese foundry industry as well. In the chapter5, according to the Chinesesemiconductor current status and local national conditions, I make someproposals regarding to government policy and financial policy reforms tomore efficiently support the development of Chinese semiconductor industry.For example, the joint cooperation to develop high-end core technology,which includes government-led and active enterprises participation. Andgovernment should also actively promote and guide the venture capital intothe semiconductor industry.