With the full resumption of work and production in Shanghai, the personnel arrival rate of semiconductor enterprises in Shanghai has increased significantly, and logistics has also been improved. In addition to Huahong, SMIC, Sunlight and other key enterprises have always been in the state of production during the epidemic, China Micro Corporation, Shanghai silicon industry and other enterprises have entered a state of resumption. Zhangjiang Hi-Tech, which gathers many leading semiconductor enterprises, has a rework rate of nearly 70% and a personnel arrival rate of about 50% in its power harbor and technical innovation area.
Ju long, global vice president and president of SEMI (International Semiconductor Industry Association), said in an exclusive interview with China Finance recently that it will take weeks or even months for the supply chain to fully return to normal. In the process of promoting the resumption of work and production, we should not only pay attention to large enterprises, but also pay more attention to the recovery of small and medium-sized enterprises in the upstream and downstream of the supply chain and the smooth logistics.
As a high-tech company that independently develops all-flash array AFA technology and products, Xu Zhaoyuan believes that some of their material supplies have been affected by the epidemic in the short term, but in the medium to long term, the entire integrated circuit industry and market will not be affected, but will benefit from the state-driven digital transformation in China. The fact that China is the world’s largest single market will not change.
In his view, next, the science and technology industry will become the focus of China’s development, and the industry expects the national policy to introduce a recovery and revitalization plan around domestic independent controllable technology research and development in the second half of the year, so that the market will usher in a strong rebound.
In terms of the pattern of the global semiconductor market, Gulong said that China is still the world’s largest and fastest-growing single market. In 2021, the total sales of semiconductor manufacturing equipment in the world exceeded 100 billion US dollars, and the Chinese mainland market accounted for 1/3, which is the largest destination of equipment expenditure. Therefore, the Chinese market and opportunities are still there, and a large number of multinational companies in the semiconductor field will continue to attach importance to the Chinese market.
Gulong believes that the shortage of global semiconductor capacity shows no obvious signs of easing this year. Although demand in the end market is less high in some segments, demand in the industrial and automotive industries is still high. Therefore, on the whole, this year’s production capacity is still insufficient.
According to forecasts at the beginning of this year, sales in the global semiconductor industry will exceed $600 billion, an increase of 9 per cent. Affected by the recent domestic epidemic, the data will be revised, but it is expected to maintain positive growth. According to a recent report by SEMI, the global demand for semiconductor applications continues to increase, and the total global equipment expenditure on front-end fab will grow by 18% in 2022 compared with the previous year, reaching an all-time high of US $107 billion, and has increased significantly for three consecutive years.
Demand in the market also fell rapidly at the beginning of 2020, but then rebounded strongly. So for semiconductors, the impact of the epidemic will not be particularly intense, the demand is there. ” Gulong said that in 2020, under the epidemic and trade frictions, the global economy was in recession, but the development of the semiconductor industry was better than expected. China’s position in the global market has also changed. With the promotion of localization, the products of Chinese local equipment enterprises continue to pass the production line verification, and the mature processes in many fields have broken the monopoly and entered the stage of commercial supply. However, Mr Gulong pointed out that China-based semiconductor companies, including SMIC and Huahong, still account for less than 10 per cent of global output. Under the risk brought by uncertain factors, it is inevitable for most enterprises to reconsider the supply chain layout in order to better avoid the risk, including how to improve the domestic supply chain and whether to adjust the layout among different regions. speed up the pace of global operation.
Therefore, while promoting localization, Julong suggested, on the one hand, continue to invest in research and development, adhere to innovation, and help Chinese enterprises enter the international market to gain stronger competitiveness, on the other hand, the government and enterprises should strengthen communication, make the whole supply chain safer, and make the development of multinational enterprises in China more at ease.
As a professional platform of the global semiconductor industry chain ecosystem, SEMI was invited to participate in the Shanghai Global Investment Promotion Conference last year as one of the top ten investment promotion partners in Shanghai in 2021, and will continue to participate this year. Gulong said that at the critical moment of orderly resumption of work and production, SEMICON China, the world’s largest professional semiconductor exhibition held in Shanghai every year, will also be held on October 5-7 this year. At present, hundreds of leading Chinese and foreign semiconductor companies have confirmed their participation in the exhibition at the first time.