Semiconductor industry in china20151126R1.2
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Transcript of Semiconductor industry in china20151126R1.2
Semiconductor Industry in China & Taiwan The leapfrogging strategy and business model of latecomer’s strategyThe suggestions to catch up.
China is the biggest Semiconductor market China is the biggest market in the world . Most of the semiconductor
companies around the world are strongly rely on Chinese market, the 50% of their revenue come from China.
If you can seize the opportunity of Chinese market ,you will win.
2000Y 2014YAnnua
l growt
hcountry
Market
scale(billion
)
Market
share
Market
scale(billion
)
Market
share
USA 64 31.3% 66 19.7% 0.2%EU 42 20.7% 38 11.4% -0.7%JAPAN 47 22.9% 35 10.6% -2%CHINA
11 5.6% 169 50.7%
21.5%
50%>40%
The semiconductor application in China is changing
customer telecom vehaicle computer IC Auto else
26.10%20.80%
1.50%
41.40%
0.80%
7.00%2.40%
21.60%
28.50%
2.50%
34.40%
0.00%
9.10%3.90%
The component ratio of chinese semiconductor application
maket
2007 2014
UP
Down
N/A
COMM\Consumer\Computer contribute a lot to the Chinese semiconductor market in the past 10 years.
But the Auto and Vehicle is increasing fast and may become the new sources of growth.
Chinese Semiconductor market rely on input Grow fast: The sales of Chinese semiconductor increased nearly 20% annually in the
past 9 years. Self-sufficient is poor: In 2013, China inputted semiconductor valued 231.3 billion
dollar which is second largest product inputted. In 2007, the proportion of Self-
sufficient is 10% ,then it increased to 20% in 2014。Year Input Output Net IP
2007年 1285 236 10492008年 1293 244 10492009年 1199 233 9662010年 1570 293 12772011年 1702 326 13762012年 1921 534 13872013年 2310 877 14332006 2007 2008 2009 2010 2011 2012 2013
0
50
100
150
200
250
300
350
400
450
-15%-10%-5%0%5%10%15%20%25%30%35%
21%
5%
-9%
29% 29%
7%11%
The total sales of chinese semi-conductor market
Unit: Billion RMB;Resources:中国半导体产业发展状况报告 ,2013
NEED
Supply
Version 1.0: Build the system of semiconductor industry
Huge Mark
et
Investment
Policy
Foreign
Technology
InputTaiwan-Direct Investment; the others -Joint
venture company
Build the Industry System
Cultivate the Local Company
Self-sufficient partly
Chinese Semiconductor systemDesig
n
Manufacture
P&T
Joint ventur
e
Version2.0: Try to improve the structure
Design
Manufacture
Package
testing
Material
Equipment
Discrete Component
Integrated Circuit
Terminal
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
51%
50%
50%
45%
44%
50%
48%
44%
40%
31%
32%
31%
31%
31%
22%
23%
31%
27%
19%
18%
19%
24%
25%
27%
29%
25%
33%
The structure of semi-conductor industry in
chinaPackaging Manufacture Design
mater
ial
IC desig
n
IC Man
u
IC P&T DI0%
10%20%30%
Rate of profit
Version 3: Great-leap-forward development Unlike the other countries, Chinese government can support a lot of resource
to develop the industry and have a long-term plan. In2014, government release Outline for the development of national
integrated circuit industry.
Investment
Joint R&D system
Re-organization and Merger
Chinese market
Industry system
Technology
Industry system
Scale enlarge
GOAL• 2020,IC industry
should reduce the disadvantage compared to leader, the P&T industry should become the leader. A perfect industrial system should be build.
• 2030, IC industry should be the leader in the world, some local company become the international company.
StrategyResources Platform
Investment
funds(20BD)
Policy support
Industry Associatio
n
Chinese semiconductor catching-up tactics-Joint R&D system Unlike IDM and specification model .Chinese semiconductor industry set
up the model of Joint R&D system to catch up with the latest technology development.
• Focus on one area• Flexible• Hard to cooperate with
the different standard • Delay time to market• Cannot fit the specific
demand
IDM( Integrated Device Manufacturer)
• The company will do all of the things
• High profit rate• High Internal resource
integration capability• High cost that can restrict
the development of technology
• Slow reaction to the market change
Specification Joint R&D system
Design Manufa
cture
Package
testing
Design
Manufacture
Package
testing
• Cooperate and influnce the partner.
• Improve the technology\efficiency and quality
• Reduce the risk• Cooperation Capability
Chinese semiconductor industry also face several threatens
Currency exchange rate
Application of semiconductor
Human resource cost
Growth of economic
The semiconductor application worldwide
In the future, the application market will focus on the Automotive\Comm\Ind\Med\Gov\Mil while the computer and consumer usage will slow down.That is quite a challenge to most of Asian semiconductor companies.
TSMC
Taiwan Semiconductor Manufacturing Company
= 2.88兆円(現時点レート)
Company Profile• Founded in 1987• TSMC's 2013 total sales revenue reached a new high at
US$20.11 billion.• 3rd largest semiconductor company, #1 foundry in the
world• Reuters 2013 top 100 Global Innovators (the only Taiwanese
company in the list)• Employees ~40,000• three 12“ Fab, four 8” Fab(1 in US, 1 in China), one 6“ Fab
and two backend fab• HQ in Hsinchu Taiwan, has account management and
engineering service offices in China, Europe, India, Japan, North America, and, South Korea.
Brief History
Right place, right time. 「天の時、地の利、人の和」
• 1987:Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) is formed as a joint venture between the Taiwan government and Philips Electronics NV.
• 1994:TSMC becomes a public company.• 1996:TSMC and joint venture partners begin construction of a
wafer fabrication plant in Camas, Washington, called Wafer Tech.• 1999:TSMC acquires a 33 percent interest in Acer Semiconductor
Manufacturing, Inc.• 2000:TSMC completes acquisition of Acer, acquires Worldwide
Semiconductor Manufacturing Co. for $550 million, and takes control of Wafer Tech.
Timing
Business Model Innovation--FoundryIn microelectronics, the foundry model refers to the separation of a
semiconductor fabrication plant operation (foundry) from an integrated circuit design operation, into separate companies or business units.
TSMC’s way to success
TSMC Core Values• (I)ntegrity • (C)ommitme
nt• (I)nnovation• (C)ustomer
Trust
New definition of TSMC
• Technology Leading• Service Turkey Solution• Manufacturing Yield High• Customers First Priority
Halo effect--Morris Chang(張忠謀 )• Born: 10 July 1931 (age 84)Ningbo,
Zhejiang, China(中國浙江省寧波市 )• Alma mater:
Massachusetts Institute of Technology (B.S., 1952; M.S., 1953)
Stanford University (Ph.D., 1964)• Occupation: Chairman and CEO of TSMC• Career:
Texas Instruments (1958–1983), Group Vice Presiden
General Instrument Corporation (1984–1985), President and Chief Operating Officer
Founded TSMC in 1987
HR Department• ~200 staff• worldwide recruiting (US, Malaysia, India,
etc.)• in-house course training with credits (work
with National Cheng Kung university)• employee wellness program• campus friendliness program• JOS (job opportunity search)
Taiwan• Support from local government• Good relationship with the USA and Europe• Special relationship with China• Good location• Cost of labor
What are your suggestion
单击图标添加图片
Semiconductor: and the same type of characteristic of industry # :High technical content #: High barriers to entry (technology & fund) #: Long life cycle (superiority & long-term)
Layout:
Feature & RankCountry/area
STRENGTHS WEAKNESSES
USA standard setters High cost and high riskJAPAN the embedded & field
of consumptionHigh cost and non leading advantage
KOREA High production tech. Ability to design, investment
TAIWAN Ability of productive & integration
Wisdom force support(insiders human resources)
CHINA Low cost & Government Support power
Weak basis
Cycle & division
Initial stage: vertical integration (IDM) Growth & mature: division (spread risk & reduce cost) Decline stage: vertical integration
The competition model Technology can be plagiarize Human cost non reversibility
*tech leading *open & cooperation (e.g. Fuji & Kodak in china )
suggestions 1、 Judge industry cycle. (you have to choose the entry point of the growth and mature period) 2、 Set up their own industrial chain integration advantages.(for example TSMC: not only a factory , but the transfer station between R&D and marketing ) 3、Using the business competition between multinational companies .(for example: TSMC acquire 30% order by Apple ) 4、 Exchange market for technology END