Development Strategy Research For Foundry Industry In China

IC manufacturing is the core of the whole electronics industry. The upgrade and revolution of the technology in IC could directly impact the calculative capability of every people on the earth. The semiconductor foundry industry originates from Taiwan. That is to serve the IC design company based on its high-tech manufacturing. It is a technology-intensive and capital-intensive industry. The expensive semiconductor machines combined with the extremely complex process built up a barrier for the external entry. Meanwhile the specific division of the industry business chain is also the output of the upgrade. Gradually the foundry industry is developing over the world. China Mainland is also experiencing mushrooming growth with entering the21st Century. After years of rapid growth, the current industry faces a period of maturity and development bottlenecks. At the same time we also need to see that the China Mainland as the world’s factory is increasingly driving the demands of the semiconductor. The industrial structure is transferring to Asia especially in China Mainland and Taiwan province. For China’s domestic semiconductor industry, the design company is developing rapidly. Together the local governments actively promote the development of the semiconductor industry value chain, heading the "Silicon Valley" to attract enterprises investment, which provides a number of tax policies benefits as well as the capital support. But the domestic design companies and semiconductor foundry cannot form a better understanding on the market. The foundry wishes to win more of today’s European and American customers while the designer sends the manufacturing to overseas foundry. For long term consideration, there is no advantage for China’s IC industry to gain more right to speak on industry standards and market share. Many scholars and I are enthusiastic looking forward to see that the design company in China feeds the manufacture of foundry demands and the foundry support the designer to move forward using its capacity. Once we can deeply develop in this situation with the broad market demands in China, we can expect a win-win result. Therefore, to well study the industry development strategy and model would provide an important reference for the semiconductor industry healthy development in future. That is also the original wish of the author. This paper can be roughly divided into four parts. The first part includes the first chapter to the second chapter which describes the background and significance of the research and makes the explanation of the study of objects introducing the frame and methodology of the study. Also introduces the basic concepts and methods of operation and development strategy. The second Part as chapter three demonstrates foundry industry current status and background, indicating the shortcomings and the bottleneck, identifying the gap between domestic company and foreign industry-leading company on the development business strategy. The third part is the soul of this article, through the development and business strategy of classic company in the industry, deep dive analysis on the merits and drawbacks. The fourth part is the feedback of the third part, providing the solution of the problems identified in the third part. The last chapter is the fourth part. The author aims to provide the reference and help for the future industry company through his own experience in semiconductor and the special viewpoint of the domestic industry development strategy.