Driven by the accelerated growth of the domestic and foreign semiconductor markets, China's integrated circuit industry ran well in 2006, showing a good momentum of development of both production and sales, and the industry stepped back into the track of rapid growth. In 2006, the sales revenue of the domestic integrated circuit industry broke through 100 billion yuan for the first time, reaching 100.63 billion yuan, with a year-on-year growth of 43.3%; The total output of integrated circuits in China reached 35.56 billion, up 36.2% year on year. In terms of growth rate, the year-on-year growth rate of sales revenue and total output of domestic integrated circuit industry in 2006 was significantly higher than 28.8% and 19% in 2005. It took nearly 10 years for China's integrated circuit industry to grow from 1 billion yuan in the early 1990s to 10 billion yuan in 2000, while it took only six years to expand from 10 billion yuan to 100 billion yuan. It can be said that the domestic integrated circuit industry made a good start for the "11th Five Year Plan" in 2006 and became a landmark year in the development of China's integrated circuit industry.

 

 

 

The biggest highlight in the development of domestic IC industry in 2006 was the accelerated development of packaging and testing industry. Packaging and testing industry has also become the main driving force for the rapid development of domestic IC industry in 2006. Since 2006, export demand has increased significantly, existing enterprises have expanded significantly, and several large new projects have been completed and put into operation. Driven by these factors, the domestic packaging and testing industry shows a momentum of accelerated development. The annual growth rate of its industry sales revenue increased significantly from 22.1 in 2005 to 44%.

 

 

 

Another highlight of the domestic integrated circuit industry in 2006 was the re promotion of the overall level of the chip manufacturing industry. With the completion and production of the 12 inch and 8 inch production lines of Hynix Italy in Wuxi, there have been 2 12 inch chip production lines and 10 8-inch chip production lines in China. In terms of quantity, domestic 12/8-inch chip production lines have accounted for more than a quarter of the total number of domestic chip production lines. From the perspective of capacity, the capacity of 12/8-inch chip production line has accounted for more than 60% of the total capacity of domestic wafers. It can be said that high-end production lines above 8 inches have begun to become the main body of the domestic chip manufacturing industry, and the domestic chip manufacturing industry has begun to move towards high-end.

 

 

 

Compared with the Yangtze River Delta and the Beijing Tianjin Bohai Rim region, the integrated circuit industry in the Pearl River Delta region lags behind these two regions in terms of scale and development speed. Since 2005, driven by the rapid development of IC design industry and packaging and testing industry in the region, the overall scale of integrated circuit industry in the Pearl River Delta region has begun to expand rapidly.

 

 

 

In 2006, the region's integrated circuit industry continued to develop at a high speed, with a year- on-year growth rate of 55.8%, much higher than the national average growth rate of 43.3%. At present, the region has a number of excellent IC design companies, such as Zhuhai Julee, Hisense Semiconductor, ZTE Microelectronics, Shenzhen Guowei, Shenzhen Ankai, etc., chip manufacturing enterprises, such as Zhuhai Nanke, Shenzhen Love Semiconductor, Founder Microelectronics, and packaging and testing enterprises, such as Shenzhen Saiyifa. In the future, the position of this region in the domestic integrated circuit industry will be further improved.

 

 

 

In recent years, with the continuous improvement of the investment environment in the western region and the rising cost of semiconductor manufacturing in the eastern coastal areas, Xi'an, Chengdu, Chongqing and other western provinces and cities are becoming new hot spots in IC investment. In particular, the investment in packaging and testing industry is more active. SMIC International's packaging plant in Chengdu, Micron's packaging plant in Xi'an, Ansome's in Leshan, and INTEL's Phase I and Phase II packaging bases in Chengdu. The settlement of these large-scale foreign packaging projects has greatly promoted the development of the integrated circuit industry in the western region. From the perspective of future development, the western region will undoubtedly become an important choice for transnational semiconductor enterprises to invest in China. The integrated circuit industry in the western region will also have a leap forward development driven by foreign investment.

 

 

 

Looking ahead to the next five years, although the prospects of the global semiconductor market are not yet clear, it is certain that China's domestic integrated circuit market will still maintain stable and rapid growth driven by the sustainable development of the macro-economy and IT industry. Driven by this, China's integrated circuit industry will maintain the momentum of rapid growth during this period. It is estimated that the compound annual growth rate of sales revenue of China's integrated circuit industry will reach 27.7% in the five years from 2007 to 2011. By 2011, the sales revenue of China's integrated circuit industry will exceed 300 billion yuan, reaching 341.544 billion yuan. At that time, China will become one of the world's important IC manufacturing bases.