Chongqing- "Chongqing's auto chip industry is set for a major leap alongside the new energy vehicle sector, thanks to tech advancements and market maturity," remarked Zhang Xinghai, Vice President of the All-China Chamber of Industry and Commerce and Chairman of Seres Group, at the Chongqing Integrated Circuit (IC) Industry Development Summit Forum on November 25.
Roundtable discussion in the Chongqing Integrated Circuit Industry Development Summit Forum on November 25. (Photo/ Chongqing Hi-Tech Industrial Development Zone Media Center)
At the Forum, over 300 government, academia, and industry leaders painted a promising future for Chongqing's role in this cutting-edge industry.
China, the global semiconductor's biggest market
Ye Tuanchun, IEAS Academician and Director of the Institute of Microelectronics, CAS, outlined three pivotal trends in IC technology at the Forum. First, China's current technological approach faces challenges, requiring innovative shifts toward new technologies like fully depleted silicon on insulators (FDSOI) and 3D transistors. FDSOI uses an ultra-thin silicon layer over a buried oxide to reduce chip leakage and variation.
Secondly, there's a move from two-dimensional to three-dimensional integration methods, broadening the scope of IC capabilities. Lastly, Ye added that innovations in design, architecture, and electronic design tools are set to become focal points in the industry.
Moreover, Ye underscored the need for the IC industry to move beyond the simple idea of replacing foreign technology with domestic alternatives. He advocated for a new approach based on innovative paths to better support the evolving needs of industry users.
Li Hong, CEO of CR Micro, highlighted that China dominates the global semiconductor industry's biggest market. He noted that in 2022, the global semiconductor industry was valued at 574.1 billion U.S. dollars, with China's share reaching 185.5 billion U.S. dollars, approximately 32%.
Li identified China's semiconductor industry boasts significant application and market strengths, emphasizing automotive electronics and industrial electronics as the most promising growth sectors within the semiconductor market.
Discussing the automotive chip market in more detail, Li provided a comprehensive analysis predicting that by 2025, automotive chips will constitute about 14% of the global semiconductor market. He projected that segments like power semiconductors, analog ICs, and storage are projected to exceed 50 billion U.S. dollars, with power semiconductors alone reaching around 23.5 billion U.S. dollars.
Additionally, Li highlighted the growing demand for sensors in intelligent vehicles, projecting that MEMS sensors will reach a market size of 3 billion U.S. dollars.
National top three power semiconductor production capacity
The Forum also highlighted Chongqing's growing significance in the semiconductor industry.
Lin Kechuang, Vice Chairman and General Manager of Sanan Optoelectronics Co. Ltd., pointed out Chongqing's strategic importance in western China and the company's substantial investments in the city. He praised the local government's effective execution, investment policies, and exceptional investment services, expressing optimism for future developments and collaborations in Chongqing.
Qin Xi, CEO of SIMIC Holdings, shared the company's experience in Chongqing since its investment there in 2017. He detailed their investment in eight projects, two of which have already been listed, and their efforts in cultivating local IC projects. Qin also emphasized the importance of building a team dedicated to transforming innovative ideas into industrial applications.
Chongqing's power semiconductor production capacity currently stands among China's top three. It is expected to become China's largest power semiconductor base by 2025.
The Chongqing High-Tech Zone is central to accelerating the construction of an IC industry ecosystem. The Xiyong Microelectronics Park within the Zone has been recognized repeatedly as one of the top ten national IC high-quality development parks.
According to the data from the Forum, the city's production boasts 200 million intelligent terminals, 60 million laptops, 30 million units of home appliances, and an automotive vehicle production capacity of 2.3 million. These plans provide vast market space for developing the IC industry, underscoring Chongqing's rising prominence in this high-tech sector.