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The Development of Integrated Circuit Industry: Approaches and Policy Options for Overcoming Late-comers’ Disadvantages(Special Issue No.37, 2017)

Dec 07,2017

By Ma Xiaobai & Ma Jun, Research Team on “The Development of Integrated Circuit Industry”, Enterprise Research Institute, DRC

Research report Special Issue No.37, 2017 (Total 1561) 2017-10-10

Abstract: Integrated circuit (IC) manufacturing industry is featured by capital- and technology-intensive-based development with scale management and boasts a winner-taking-all position in the market. For the late-comers, the disadvantage is very prominent. It is difficult for them to enter the market with low cost and is equally difficult for them to gradually move up to high-end value chain like traditional industries, and private capital is usually reluctant to make investment in this sector. China’s integrated circuit manufacturing industry needs to break the bottleneck induced by latecomer’s disadvantages, and draw on the successful experience of Japan, South Korea and China’s Taiwan province. By strengthening cooperation between government and enterprise, integrating resources, making innovations, and forging comprehensive competitive advantages, the IC manufacturing industry would be able to carve a niche in the global competition of IC manufacturing industry.

Key words: integrated circuit, manufacturing industry, latecomers’ disadvantage, development approach