Chinese semiconductor industry

Status
Not open for further replies.
T

tonyget

Senior Member
Registered Member
tphuang said:
Hmm, they need both. You are completely overstating this matured node fab build up.

If it actually meets China's demand, then why is doesn't mcu makers still come close to meet even 50% market share?
Click to expand...

What does that has anything to do with production capacity？You think domestic MCU makers low market share is due to they cannot get enough chips from fabs？Think again

Right now，domestic MCU makers have tons of chips in stockpile but nowhere to sell.


Please, Log in or Register to view URLs content!

2023上半年，MCU市场杀价进入白热化，ST、NXP的产品普遍回归到常态价，兆易创新等中国本土厂商被迫继续降价。

在这种策略影响下，32位MCU已成为市场主流产品，且不断向下蚕食8位产品市场。在激烈“内卷”态势下，中国本土企业原有的低价、甚至是“赔本赚吆喝”策略，越来越难以为继。

下面看一下中国本土企业之间的竞争。

据不完全统计，中国本土有100多家MCU企业，它们中的大部分都集中在小家电和消费类电子等中低端应用领域。技术含量整体不高必然带来价格“内卷”，特别是在近两年低迷市场需求的影响下，价格战非常激烈。据悉，某上市公司的M0+级MCU定价根本不挣钱，甚至亏本，而其它本土MCU厂商只能跟进，这使整个行业难以摆脱低端化竞争的困境。

In the first half of 2023, price bargaining in the MCU market has become intense. ST and NXP products have generally returned to normal prices, and local Chinese manufacturers such as GigaDevice are forced to continue to cut prices.

Under the influence of this strategy, 32-bit MCUs have become mainstream products in the market and continue to encroach on the 8-bit product market. Under the fierce "involution" situation, the original low-price and even "loss-making and profit-making" strategies of Chinese local enterprises have become increasingly unsustainable.

Let’s take a look at the competition among local Chinese companies.

According to incomplete statistics, there are more than 100 MCU companies in China, and most of them are concentrated in mid-to-low-end application fields such as small household appliances and consumer electronics. The overall low technical content will inevitably lead to price "involution". Especially under the influence of sluggish market demand in the past two years, the price war has become very fierce. It is reported that a listed company's M0+ level MCU pricing does not make any money at all, or even loses money, while other local MCU manufacturers can only follow suit, which makes it difficult for the entire industry to escape from the predicament of low-end competition.
 
E

european_guy

Junior Member
Registered Member

Shortage in Global Semiconductor Photomasks! Prices Expected to Rise in 2024​


Please, Log in or Register to view URLs content!

due to strong demand from Chinese chip manufacturers and wafer foundries <....> most photomask manufacturers, including Japan’s Toppan, DaiNippon Printing, and the U.S.’s Photronics, are currently operating at full capacity with a utilization rate of 100%.
Click to expand...

mature processes may require around 30 photomasks, while the latest advanced processes might demand as many as 70 to 80 photomasks to handle
Click to expand...

with only a 3% domestication rate for high-end photomask versions in China. In the preparation of photomasks, the Chinese semiconductor photomask industry faces a situation where high-end equipment and materials are dominated by foreign manufacturers
Click to expand...

In the photomask industry chain, the upstream sector primarily involves equipment, substrates, light-blocking films, and chemical reagents; the midstream sector is photomask manufacturing
Click to expand...

SMIC and other big foundries have photomask manufacturing facilities, but don't have the upstream: equipment, substrates, light-blocking films, and chemical reagents.

This can be a problem in the future once US realizes that they can wepaonize photomasks too. Not clear why they didn't do already, maybe because main suppliers are non-american, like the Austrian
Please, Log in or Register to view URLs content!
for equipment and Japanese firms for glass substrate and materials...

...but this alone won't stop US, both Europe and Japan are under US geopolitical control.
 
tphuang

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
tonyget said:
What does that has anything to do with production capacity？You think domestic MCU makers low market share is due to they cannot get enough chips from fabs？Think again

Right now，domestic MCU makers have tons of chips in stockpile but nowhere to sell.


Please, Log in or Register to view URLs content!

2023上半年，MCU市场杀价进入白热化，ST、NXP的产品普遍回归到常态价，兆易创新等中国本土厂商被迫继续降价。

在这种策略影响下，32位MCU已成为市场主流产品，且不断向下蚕食8位产品市场。在激烈“内卷”态势下，中国本土企业原有的低价、甚至是“赔本赚吆喝”策略，越来越难以为继。

下面看一下中国本土企业之间的竞争。

据不完全统计，中国本土有100多家MCU企业，它们中的大部分都集中在小家电和消费类电子等中低端应用领域。技术含量整体不高必然带来价格“内卷”，特别是在近两年低迷市场需求的影响下，价格战非常激烈。据悉，某上市公司的M0+级MCU定价根本不挣钱，甚至亏本，而其它本土MCU厂商只能跟进，这使整个行业难以摆脱低端化竞争的困境。

In the first half of 2023, price bargaining in the MCU market has become intense. ST and NXP products have generally returned to normal prices, and local Chinese manufacturers such as GigaDevice are forced to continue to cut prices.

Under the influence of this strategy, 32-bit MCUs have become mainstream products in the market and continue to encroach on the 8-bit product market. Under the fierce "involution" situation, the original low-price and even "loss-making and profit-making" strategies of Chinese local enterprises have become increasingly unsustainable.

Let’s take a look at the competition among local Chinese companies.

According to incomplete statistics, there are more than 100 MCU companies in China, and most of them are concentrated in mid-to-low-end application fields such as small household appliances and consumer electronics. The overall low technical content will inevitably lead to price "involution". Especially under the influence of sluggish market demand in the past two years, the price war has become very fierce. It is reported that a listed company's M0+ level MCU pricing does not make any money at all, or even loses money, while other local MCU manufacturers can only follow suit, which makes it difficult for the entire industry to escape from the predicament of low-end competition.
Click to expand...
As I explained. this is a multi-year process and the end goal is to source 90% of chips locally and fab them locally. It doesn't matter the chip designers are not there right now, they need to get there and there is nothing that prevents them from getting there

But as of now, a good chunk of chip shops are having it fabbed at TSMC. And we need to have that moved to SMIC and domestic fabs. They need to add significant capacity.
 
T

tokenanalyst

Brigadier
Registered Member

Zhongjing Technology: Polished silicon wafers are in the process of customer batch certification and volume increase​


Zhongjing Technology disclosed the latest research minutes, saying that silicon material is an important raw material for semiconductor discrete devices and integrated circuit manufacturing. The customer product certification process has a long cycle and requires downstream manufacturers’ sample trials, on-site audits, bulk purchases, etc. Only after the long-term certification process can we enter the list of qualified suppliers for downstream customers. Currently, some of the company's 6-8-inch polished silicon wafer customers have passed certification and are in the bulk purchase stage.

Zhongjing Technology pointed out that through years of market accumulation and development, the company has occupied a leading market position in the domestic fields of monocrystalline silicon rods, ground silicon wafers for discrete devices, and semiconductor power chips and devices. Through high-quality products and high-quality Our services have established a good reputation in the industry and accumulated a wide range of customer groups. We have cooperated with Jingdao Micro, the 46th Research Institute of Electronic Technology, Baizhen Junyao Electronics, Suzhou Good Technetium, Galaxy Century, Japan's Shindengen Industrial Co., Ltd., China Resources Micro, Samsung Electronics, Canon Hong Kong Technology Co., Ltd., Midea, Galanz and other well-known enterprises in the downstream industry have formed long-term and stable cooperative relationships, and the scope of cooperative products has been continuously enriched. The company's high-quality and high-stability products make the company's brand highly recognized among downstream manufacturers.

Please, Log in or Register to view URLs content!
 
T

tonyget

Senior Member
Registered Member
tphuang said:
As I explained. this is a multi-year process and the end goal is to source 90% of chips locally and fab them locally. It doesn't matter the chip designers are not there right now, they need to get there and there is nothing that prevents them from getting there

But as of now, a good chunk of chip shops are having it fabbed at TSMC. And we need to have that moved to SMIC and domestic fabs. They need to add significant capacity.
Click to expand...

It's not like once you build a factory and start to produce something，people will automatically buy everything you produce. It doesn't work that way，not in any industry.
 
T

tokenanalyst

Brigadier
Registered Member

Xinping High-tech Industrial Park opened, and 5 projects including semiconductor thin film deposition equipment were signed together​

Lanke·Xinzhan Xinping High-tech Industrial Park was recently opened. Five projects entering the park were signed on site, and three investment funds signed strategic cooperation.
At the site, five projects including ceramic materials for semiconductor etching machines, liquid crystal display modules, semiconductor thin film deposition equipment, construction engineering inspection and testing, and cross-border e-commerce were signed together, involving upstream materials and equipment for core screens, downstream consumer electronics applications, etc. field, with a total investment of 1.2 billion yuan . After the project is fully put into operation, it is expected to achieve an output value of 1.5 billion yuan.
According to news from Hefei Xinzhan District , Lanke·Xinzhan Xinping High-tech Industrial Park is jointly funded and built by Lanke Company, a subsidiary of Jiancheng Investment Group, and Xincheng Holding Group, a platform enterprise in Xinzhan High-tech Zone . The park will focus on the development of new industries such as integrated circuits, new displays, and intelligent manufacturing, and accelerate the creation of a first-class domestic and internationally leading core screen and intelligent manufacturing innovation.

Please, Log in or Register to view URLs content!
 
P

paiemon

Junior Member
Registered Member
tonyget said:
It's not like once you build a factory and start to produce something，people will automatically buy everything you produce. It doesn't work that way，not in any industry.
Click to expand...
Perhaps domestic OEMs are still evaluating those components and validating their integration into the final systems. Brands such as TI, ST, etc have established track records with OEMs. New entrants will take time to port over even if there is agreement to onboard as suppliers. Let's re-evaluate in a year or two, if its the same situation then there may be a competitiveness element to the lack of market growth.
tphuang said:
Interesting, this FT article had stuff that's not awful (I mean if you can ignore the usual think tank nonsense)
Click to expand...
The interesting takeaway I got from the article was their assessment that SMIC is on track for 7nm capacity expansion and progressing towards 5nm node. That would mean they have sufficient pipeline of equipment, whether domestic, international or some combination of both regardless of the headwinds they have faced. So this would support some of the rumors/commentary we have heard, it will be satisfying to see these developments play out in the next year or two.
 
Status
Not open for further replies.
Top