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Policy Options on Promoting Chinese Integrated Circuit Enterprises to Make Breakthroughs on High Technologies(Special Issue No.38, 2017)


By Zhou Jianqi, Research Team on “The Development of Integrated Circuit Industry”, Chinese Enterprise Institute, DRC

Research report Special Issue No.38, 2017 (Total 1562) 2017-10-10

Abstract: The world leading technologies and efficient supporting systems are indispensable for integrated circuit enterprises to expand their scales and become one of the frontrunners in the world. China is in great need of integrated circuit equipment, whereas its demand has far outpaced the domestic supply capacity. Due to outdated facilities, the Chinese integrated circuit enterprises still have a long way to go compared with the leading enterprises in U.S., Japan and Holland in terms of technologies. The main reasons lie in the fact that China’s input in integrated circuit R&D is inadequate and the number of large-scale equipment enterprises is limited. Consequently, it is difficult for Chinese integrated circuit enterprises to build complete assembly lines with China-made equipment on the downstream end and also difficult for them to cultivate domestic procurement systems to make hi-tech breakthroughs on the upstream end. It is suggested that the government should steadily support the integrated circuit enterprises to increase R&D input, foster integrated circuit industrial clusters and support the enterprises to develop in an integrated manner. Besides, the government needs to build public laboratories on key national integrated circuit equipment production and to give strong backing to China’s integrated circuit industry to move up towards the high-end production chain.

Key words: integrated circuit, equipment enterprises, breakthroughs on hi-tech development, policy options