The mainland foundry showed a good trend from loss to profit

Recently, the mainland foundry market has repeatedly reported operating successes. SMIC has continued to make profits in the third quarter after reversing the 12-season loss situation in the second quarter; TSMC's Shanghai Songjiang Plant has also reversed its 7th year in the second quarter. The loss, in the second and third quarters and even two quarters to make money, from the SMIC's recent profits to the Shanghai Songjiang plant, does it mean that the good conditions in the mainland foundry market have really come?

The financial tsunami has swept the global market in the past two years. Even if the mainland market is still inaccessible, since 2000, the mainland foundry market has grown substantially in recent years due to the rise of local IC design factories. , and even a two-year recession.

However, the mainland's strong domestic demand for consumption has caused the semiconductor market to rebound rapidly from the bottom. It is expected that the mainland's industrial output value of wafers in 2010 will reach RMB 22.06 billion, a 15.5% increase over the RMB 19.1 billion in 2009. Looking back to the 2008 level.

After the 12 consecutive quarters of losses, SMIC officially turned profitable in the second quarter. It continued to make profits in the third quarter. In the electronics industry in Taiwan, it was hit by the European debt crisis. At the same time, the mainland foundry’s demand was mostly due to communications. With consumer electronics, it has not been much affected. SMIC is returning to the road of growth. Because it is geographically convenient, it is now the most advanced and largest wafer foundry on the mainland. Its 2010 performance will grow significantly and it is expected to maintain its current status in the next two to three years. .

It's no wonder that Sing Chairman Jiang Shangzhou also pointed out that the future will be! Each year, it invests 2 billion U.S. dollars in research and development, and continues to catch up with the world in advanced manufacturing processes.艩C For mainland officials, semiconductors are also an important supporting industry. Their own foundries are even more indispensable. Therefore, even if SMIC has suffered losses in recent years, officials will continue to invest funds.

However, the reason why the mainland’s official crisis has doubled recently is mainly due to Chengdu Chengxin, which was originally entrusted with SMIC. TSMC, Micron and other big manufacturers have robbed each other and were eventually bought by Texas Instruments, causing the mainland to lose again. As a result of a fab, the Wuhan government and SMIC’s joint venture Wuhan Xinxin were again promoted. This is still a dream of “Chinese core”. It can be seen that the mainland officials will still do their best to promote the growth of the semiconductor industry.

In the newly released 12th Five-Year Plan, semiconductors are still one of the industries supported by the mainland government. At the same time, as the mainland’s wages increase and people’s living standards increase, the purchasing power of mobile phones, consumer electronics and other products will increase. Continue to drive the growth of the mainland semiconductor industry.

However, whether it is for SMIC or other mainland foundries, the introduction of advanced processes comes later than the major manufacturers such as TSMC, UMC, and GlobalFoundries, and the gap is between 2 and 3 years, and many gaps. In 4 or 5 years, however, with the continuous expansion of world-class manufacturers and the accelerated pace of investment in advanced processes, I am afraid the gap will only increase.

In addition, everyone on the mainland market wants to share food. For TSMC, the current investment strategy is mostly investment in advanced manufacturing processes. However, in 2010, it continued to invest in the mainland's Songjiang 8吋 plant, which is also Taiwan’s only electricity. With a capacity expansion of 8 plants, TSMC is also confident that Songjiang will continue to make money in 2011.

In addition, the UMC merger and the warship case were also formally dismissed. The government has nodded in agreement and currently has only procedural issues. Although the global wafer currently does not have a plan to set up a factory in the mainland, it is also holding a global technology forum to promote the mainland. Reputation. From these examples, it is shown that the big manufacturers in the mainland market can be said to have a tough situation.

Although the mainland-based foundries have advantages in the field, they can maintain the short-term advantage of continuous growth in 2010 and the next two or three years. However, if the long-term development perspective is adopted, the progress of advanced process introduction will be later than that of overseas factories. With the continuous expansion of production capacity of mainland factories by large foreign companies in Shanghai, whether domestic mainland foundries can demonstrate their endurance and the investment policies of the mainland government and local manufacturers will become the key to the future.