According to a report from Jiweiwang, the integrated circuit industry is the core of the information technology industry, a strategic, fundamental, and leading industry that supports economic and social development and ensures national security. It is a key force leading the new round of technological revolution and industrial transformation.

During the 13th Five Year Plan period, the proportion of design and manufacturing in the integrated circuit industry has steadily increased

In 2000, 2011, and 2014, several policies were issued to encourage the development of the software and integrated circuit industries, several policies to further encourage the development of the software and integrated circuit industries, and the National Outline for Promoting the Development of the Integrated Circuit Industry.

In June 2014, the State Council issued the "Outline for Promoting the Development of the National Integrated Circuit Industry" (hereinafter referred to as the "Outline"), which clearly stated that by 2020, the gap between the integrated circuit industry and the international advanced level will gradually narrow, and the average annual growth rate of sales revenue in the entire industry will exceed 20%, significantly enhancing the sustainable development ability of enterprises.

2020 has therefore become an important time node for China's integrated circuit industry. Meanwhile, 2020 is also a transitional period between the end of the 13th Five Year Plan and the beginning of the 14th Five Year Plan, and China's integrated circuit industry has entered a new era.

From the overall development of the industry, during the 13th Five Year Plan period, the scale of China's integrated circuit industry maintained growth. Among them, the sales scale of the integrated circuit design industry increased from 132.5 billion yuan to 381.9 billion yuan, with an annual compound growth rate of 23.6%, which is nearly six times the annual compound growth rate of the global semiconductor industry during the same period. According to the analysis of Jiwei Consulting, there have been significant changes in the structure of the three links of integrated circuit industry design, manufacturing, and packaging testing, and the proportion of design and manufacturing links with higher added value has steadily increased.

2020 is a particularly noteworthy year, with the sales revenue of China's integrated circuit industry reaching 884.8 billion yuan. During the 13th Five Year Plan period, the average annual growth rate was nearly 20%, which is four times the global growth rate during the same period. The goal of "the average annual growth rate of sales revenue of the integrated circuit industry in 2020 will exceed 20%" proposed in the "Outline" has been basically achieved.

In 2020, the sales revenue of the integrated circuit manufacturing industry was 25601 billion yuan, and the sales revenue of the packaging and testing industry was 250.95 billion yuan. This is the first time in history that China's chip manufacturing industry exceeded the sales revenue of the packaging and testing industry, and it is also a landmark event for the development of the integrated circuit industry. Jiwei Consulting believes that this is closely related to the increase in investment and production capacity in China during the 13th Five Year Plan period. It is precisely the rapid development of the chip manufacturing industry that strongly supports the development of the entire chip industry.

From the 13th Five Year Plan to the 14th Five Year Plan: The position of "integrated circuits" is becoming increasingly prominent

On August 4, 2020, the State Council issued the "Several Policies to Promote the High Quality Development of the Integrated Circuit Industry and Software Industry in the New Era", which for the first time placed the "integrated circuit industry" before the "software industry", in line with the previous "Several Policies" issued in 2000 and 2011. From the file name, it can also be seen that the policy level attaches great importance to integrated circuits.

Compared to the "13th Five Year Plan Outline for National Economic and Social Development of the People's Republic of China (2016-2020)" (hereinafter referred to as the "13th Five Year Plan"), the "14th Five Year Plan for National Economic and Social Development of the People's Republic of China and the Long Range Objectives Outline for 2035" (hereinafter referred to as the "14th Five Year Plan") have clearer and more refined concepts such as integrated circuits and chips.

Anhui proposed that by 2021, the scale of the semiconductor industry will strive to reach 100 billion yuan; Hubei proposes that by 2022, the main revenue of the integrated circuit industry will exceed 100 billion yuan; Wuhan proposes to strive for the main business revenue of the integrated circuit industry to reach over 100 billion yuan by 2022, which also means that these provinces and cities will step into the "100 billion level" track during the "14th Five Year Plan" period.

According to the analysis of Jiwei Consulting, by 2025, the number of integrated circuit "100 billion level" provinces and cities will increase to 10. Due to the varying statistical standards across provinces and cities, Jiwei Consulting predicts that by 2025, the sales scale of China's integrated circuit industry will increase by at least three times compared to 2020.

summary
China is a major production base for the global electronic information manufacturing industry and also the fastest growing integrated circuit market in the world. Jiwei Consulting believes that currently, China's integrated circuit industry has achieved significant results in technological innovation and marketization, and more and more provinces and cities will break through the "100 billion level" or "200 billion level".

From the perspective of the current situation of industries in provinces and cities with a scale of "100 billion" and the "14th Five Year Plan" goals, the integrated circuit industry in regions such as the Yangtze River Delta, Pearl River Delta, Beijing Tianjin and Bohai Rim has shown a rapid growth trend. The Yangtze River Delta and Pan Pearl River Delta regions have formed a cluster effect for the development of integrated circuits. Anhui Province, Jiangsu Province, Shanghai City, Zhejiang Province, Fujian Province, Guangdong Province, Sichuan Province, and other provinces have made clear goals and plans for the development of integrated circuits in the 14th Five Year Plan, and the cluster development is relatively clear.