According to PricewaterhouseCoopers' latest report, "China's Impact on the Semiconductor Industry: Updated 2010," China's market performance has been better than other global markets in the ups and downs of the semiconductor industry in the past eight years.
Raman Chitkara, partner of global technology industry at PricewaterhouseCoopers, said: “China continues to maintain its expansion in the global semiconductor market. At present, China’s semiconductor consumption has accounted for 41% of global semiconductor consumption. More than 50% of the newly listed companies in the semiconductor industry are Chinese companies, and the employed population of China's semiconductor industry accounts for 25% of the global employment population."
As the share of global electronic equipment production continues to rise, China continues to maintain its dominance in the electronics manufacturing industry. Driven by the global dominance of the electronics manufacturing industry and the growing consumption of the middle class in China, China’s share of global semiconductor products continues to grow.
Another bright spot in China's semiconductor industry is its rapidly growing IC chip design industry. The growth rate of the industry in 2009 was as high as 17%, with a record value of $4 billion. Although China’s share of global semiconductor production is increasing, China’s semiconductor production speed has not caught up with its consumption rate. The resulting industrial gap has reached as much as 67 billion U.S. dollars.
Alison Wong, partner of PricewaterhouseCoopers China Technology Industry, said: “When the economic crisis engulfed the world, China’s semiconductor product consumer market performed better than any other regional market in the world. One of the reasons was the rapid development of China’s urbanization process. , Increasing consumption and green energy initiatives. Nevertheless, semiconductor product companies should increase their business development efforts in China to meet growing domestic demand and reduce the gap between production and consumption."
Multinational integrated equipment manufacturers (IDMs) have been leading the growth of China's semiconductor production. Four of the top five companies in the Chinese semiconductor industry are such companies. However, China's domestic semiconductor product makers have not accelerated growth as expected 10 years ago.
Ergun Genc, ​​partner of PricewaterhouseCoopers China Technology, said: "As a strategy to enter the Chinese domestic market, multinationals should consider acquiring Chinese design companies or partnering with them."
Workforce Management
In the past five years, the labor force in China's semiconductor industry has grown at a rate of 10% per year and currently accounts for 25% of the total global semiconductor labor force. Despite this, the increase in the number of laborers has also increased the turnover rate of many semiconductor product company employees. As a result, a number of semiconductor product companies have increased their salaries in order to maintain a stable workforce. Although the cost of some laborers in China is still at the low end of the world, these costs will increase with the growth and maturity of China's semiconductor industry. Therefore, proactively managing the labor force has become one of the more and more important issues for management in the coming years.
Innovation
In terms of innovation, the semiconductor industry has always been a leader in the technology industry. China is currently participating in this innovation. In the newly approved patents for the semiconductor industry, China accounts for 22%, compared with 13% in 2005. With the increase in the number of newly approved patents for semiconductors in China, the ratio will exceed the 30% mark by the end of 2010, and this continuous growth trend will continue.
In terms of the number of semiconductor companies listed on the market, China has gradually become a leader. In the past four quarters, Chinese companies accounted for more than half of the newly-listed semiconductor companies in the world. Chitkara said: "In the Shenzhen Stock Exchange, the number of publicly listed semiconductor companies has surpassed any other stock exchange in the world for the fourth consecutive quarter."
Mr. Chitkara said: "Our research report shows that China's influence in this industry will continue to increase, which provides a good opportunity for those companies that want to enter the Chinese market or increase their existing operations in China. If you want to become a very important company in the semiconductor industry, you have to have a large scale of operations in China."
Focusing on the Chinese market needs to consider the following issues:
Cooperation with Chinese government departments: Utilize China's RMB 4 trillion economic stimulus plan, which covers such areas as railways and air transport, telecommunication networks, improving rural conditions and medical reforms. Reassessing the current position of the company: China's strength in this economic crisis is based on the massive consumption of semiconductor products in other countries. This trend is likely to continue. Therefore, if the company's current position is inferior to its competitors, it will need to increase its business development efforts. Concern for Greater China: Taiwan has relaxed the restrictions on Taiwanese investment in mainland China and mainland investment in Taiwan. Concerned about these dynamics, while paying attention to new market opportunities and risks in Greater China. Adapt to the unique standards and framework of the Chinese market: Some unique alternative standards will continue to be proposed in China. If passed, these standards will provide more attractive and efficient solutions for developing countries that have great market potential. So keep an eye on these changing standards while paying attention to new business development opportunities. Leverage Chinese Foundry Firms to Gain Price Advantage and Maintain Future Capacity: Due to the recent reduction in capital investment and the acceleration of the business model from IDM to fab-lite, casting capacity is likely to be insufficient. Choosing a Chinese foundry company can immediately reduce costs and ensure future supply of certain product categories. Invest in effective human relationships: Before starting any project in China, fully consider China's humanistic environment and establish a practical and efficient network of human relationships.
Raman Chitkara, partner of global technology industry at PricewaterhouseCoopers, said: “China continues to maintain its expansion in the global semiconductor market. At present, China’s semiconductor consumption has accounted for 41% of global semiconductor consumption. More than 50% of the newly listed companies in the semiconductor industry are Chinese companies, and the employed population of China's semiconductor industry accounts for 25% of the global employment population."
As the share of global electronic equipment production continues to rise, China continues to maintain its dominance in the electronics manufacturing industry. Driven by the global dominance of the electronics manufacturing industry and the growing consumption of the middle class in China, China’s share of global semiconductor products continues to grow.
Another bright spot in China's semiconductor industry is its rapidly growing IC chip design industry. The growth rate of the industry in 2009 was as high as 17%, with a record value of $4 billion. Although China’s share of global semiconductor production is increasing, China’s semiconductor production speed has not caught up with its consumption rate. The resulting industrial gap has reached as much as 67 billion U.S. dollars.
Alison Wong, partner of PricewaterhouseCoopers China Technology Industry, said: “When the economic crisis engulfed the world, China’s semiconductor product consumer market performed better than any other regional market in the world. One of the reasons was the rapid development of China’s urbanization process. , Increasing consumption and green energy initiatives. Nevertheless, semiconductor product companies should increase their business development efforts in China to meet growing domestic demand and reduce the gap between production and consumption."
Multinational integrated equipment manufacturers (IDMs) have been leading the growth of China's semiconductor production. Four of the top five companies in the Chinese semiconductor industry are such companies. However, China's domestic semiconductor product makers have not accelerated growth as expected 10 years ago.
Ergun Genc, ​​partner of PricewaterhouseCoopers China Technology, said: "As a strategy to enter the Chinese domestic market, multinationals should consider acquiring Chinese design companies or partnering with them."
Workforce Management
In the past five years, the labor force in China's semiconductor industry has grown at a rate of 10% per year and currently accounts for 25% of the total global semiconductor labor force. Despite this, the increase in the number of laborers has also increased the turnover rate of many semiconductor product company employees. As a result, a number of semiconductor product companies have increased their salaries in order to maintain a stable workforce. Although the cost of some laborers in China is still at the low end of the world, these costs will increase with the growth and maturity of China's semiconductor industry. Therefore, proactively managing the labor force has become one of the more and more important issues for management in the coming years.
Innovation
In terms of innovation, the semiconductor industry has always been a leader in the technology industry. China is currently participating in this innovation. In the newly approved patents for the semiconductor industry, China accounts for 22%, compared with 13% in 2005. With the increase in the number of newly approved patents for semiconductors in China, the ratio will exceed the 30% mark by the end of 2010, and this continuous growth trend will continue.
In terms of the number of semiconductor companies listed on the market, China has gradually become a leader. In the past four quarters, Chinese companies accounted for more than half of the newly-listed semiconductor companies in the world. Chitkara said: "In the Shenzhen Stock Exchange, the number of publicly listed semiconductor companies has surpassed any other stock exchange in the world for the fourth consecutive quarter."
Mr. Chitkara said: "Our research report shows that China's influence in this industry will continue to increase, which provides a good opportunity for those companies that want to enter the Chinese market or increase their existing operations in China. If you want to become a very important company in the semiconductor industry, you have to have a large scale of operations in China."
Focusing on the Chinese market needs to consider the following issues:
Cooperation with Chinese government departments: Utilize China's RMB 4 trillion economic stimulus plan, which covers such areas as railways and air transport, telecommunication networks, improving rural conditions and medical reforms. Reassessing the current position of the company: China's strength in this economic crisis is based on the massive consumption of semiconductor products in other countries. This trend is likely to continue. Therefore, if the company's current position is inferior to its competitors, it will need to increase its business development efforts. Concern for Greater China: Taiwan has relaxed the restrictions on Taiwanese investment in mainland China and mainland investment in Taiwan. Concerned about these dynamics, while paying attention to new market opportunities and risks in Greater China. Adapt to the unique standards and framework of the Chinese market: Some unique alternative standards will continue to be proposed in China. If passed, these standards will provide more attractive and efficient solutions for developing countries that have great market potential. So keep an eye on these changing standards while paying attention to new business development opportunities. Leverage Chinese Foundry Firms to Gain Price Advantage and Maintain Future Capacity: Due to the recent reduction in capital investment and the acceleration of the business model from IDM to fab-lite, casting capacity is likely to be insufficient. Choosing a Chinese foundry company can immediately reduce costs and ensure future supply of certain product categories. Invest in effective human relationships: Before starting any project in China, fully consider China's humanistic environment and establish a practical and efficient network of human relationships.
Ruixiang M&E Co., Ltd. , http://www.gzcurtainmotor.com