On The Competitive Advantages Of China’s Integrated Circuit(IC) Industry

Integrated circuits (Integrated Circuit, IC) industry as the main body of thesemiconductor industry, has become the basis of the information technologyinnovation, it is not only a profound impact on the prosperity and development ofthe world economy, to make an important contribution to the growth of the globaleconomy, but also directly related to the country’s national defense construction,information security and people’s daily lives. Study the development of theintegrated circuit industry has a very important and far-reaching significance.China’s IC industry started relatively late, but in the past20years, especiallyover the last decade been sustained rapid development, and has begun to take shape.With the international transfer of the semiconductor industry, the support of nationalpolicies, the growing demand of the domestic consumer electronics, China’s ICindustry is facing unprecedented opportunities and challenges.Michael E Porter "Diamond model" based framework, combined with theauthor many years of experience, field research and up-to-date data, ascomprehensively as possible, objectively expounded the level of development andinternational competitiveness of China’s IC industry to identify the main factors andpropose appropriate countermeasures.In the course of the study, author found that:1) Chinese IC companies lack theright to speak in the international standard-setting, under the dual pressure of theshort time-to-market and shorter product life cycles, it has been in a "follow" passiveposition.2) The lack of development strategy, funds, high-end talent, innovationmechanism shortage environment, energy and resources for a good corporatestrategic planning and internal governance structure adjustment, enterpriseinnovation ability is weak, low value-added products.3) The relatively small scaleof the industry and firm size and so on.Address these problems and gaps, author respectively from the human resource,capital, expanding domestic demand, enterprise innovation, new competition andaspects of the government proposed the corresponding countermeasures.