Posted on 03/07/2005 4:07:42 PM PST by Dat Mon
Zou Shichang, chairman of Grace Semiconductor Mfg Corp., boldly predicted in an interview here that China will become the epicenter of global IC manufacturing by 2010.
With a greater emphasis on manufacturing, IC demand in China surged in 2002 to more than $24 billion. Zou said that could be only the tip of the iceberg since China currently supplies only 17.5 percent of its total domestic market demand. That underscores the huge potential growth in China's chip demand.
China currently accounts for nearly 10 percent of the world's semiconductor said Zou. "In terms of market, opportunities as well as applications, I see great potential in all areas. For instance, China is switching from analog to digital TV. It's a huge market."
China is estimated to have close to 300 million TV receivers, most of which will switch to digital broadcasts.
"The mobile phone market is another hot market where China has to develop chips for the mobile phones," Zou added. It is estimated that there will be 130 million mobile phone users in China by 2005 and more than 300 million users by 2010. China is the second-largest mobile phone market in the world after the United States.
According to Zou, China must move beyond being simply a low-cost manufacturing and assembly hub. "China has to cooperate with international technology vendors and partners in the use of core technology as well. There has to be viable technology transfer if China is to collaborate with long-term technology partners."
Added Zou, "Some countries are only looking at market share in China, and they do not want to export their core technologies. Technology transfer and increasing market share must go together. One without the other is going to be a stumbling block for any long-term relationship," he said.
China wants to work with foreign companies to develop core technology as well. That's why Bejing has invested heavily in development of a process technology roadmap. China has so far reached the 0.15-micron process level. Fabs like Grace Semiconductor are now shooting for 0.13 micron technology using copper interconnects. Next year, Chinese chip makers will seek to deploy 90nm technology.
"We hope to produce 33,000 wafers per month in the second half of this year," compared with the current 25,000 wafers, the Grace chairman said.
Zou said Grace has broken even in terms of cash flow but conceded that "we are not profitable yet." He said Grace is looking for European and U.S. partners, and that the door is still open for international process technology partnerships.
"Of course there is increasing competition in the memory and logic components markets, but there is also an increasing opportunity for greater collaboration between various fabs and design houses," stressed Zou.
China has yet to see a dip in demand for ICs. If Grace Semiconductor turns a profit this year, Zou said he hopes to take the chip maker public on the U.S. and Asian markets, including an IPO sometime next year.
Possible partners here include Singapore's Institute of Micro Electronics and perhaps Chartered Semiconductor.
Shanghai-based Grace Semiconductor has so far invested $1.63 billion in its chip operations. It is currently operating an 8-inch fab at full production and also operates a 12-inch fab.
"China has to cooperate with international technology vendors and partners in the use of core technology as well. There has to be viable technology transfer if China is to collaborate with long-term technology partners."
Note the mention of Digital television. IMO, China will move in the future to introduce proprietary versions of multimedia and wireless.
Just a little food for thought.....
Those ChiComs are quite the capitalists, no?
You could say that China is already the epicenter--Taiwan.
Yep, and the Japanese economy will swallow the US. And the world will run out of oil by 1990, and Bush's foreign policy won't work, etc, etc....
You say..."Those ChiComs are quite the capitalists, no?"
I dont know...you tell me.. is China a capitalist country...a communist country... or some as yet undefined type of government country?
"Yep, and the Japanese economy will swallow the US. And the world will run out of oil by 1990, and Bush's foreign policy won't work, etc, etc...."
You ought to read the article. Its about China and its developing semiconductor technology.
I'm predicting China will implode by then. I think they are looking for an external conflict to delay the implosion from occuring. They just need to find one they can win.
I did read it. And I stand by my post. Sorry if you don't get it.
"You could say that China is already the epicenter--Taiwan."
Taiwan seems to have a split personality in regards to its relationship with China.
Many businessmen in Taiwan see China as an economic oppportunity to be developed...others in Taiwan see China as a threat to their democratic way of life.
If you do some digging..youll find lots of examples of China / Taiwan interdependencies developing in the way of manufacturing and technology.
Oh I get it.
I don't know. In ways,
China is like Germany
under the Nazis.
So far as we know,
they're not doing genocide
yet, but give them time . . .
You said..."In the future, are nuts, they have been doing that for years."
Im not following you...
Its a Capitalist Dictatorship under a Communist flag.

China: Execution of Tibetan Prisoners (photos, warning: gruesome)
RE: So far as we know, they're not doing genocide yet, but give them time . . .
It is interesting that you mentioned this. There is, not only in the PRC, but even among ethnic Chinese in certain quarters outside the PRC, a rabid strain of pan Sinic ideology. It includes a superiority complex and a view that all other ethnic groups, especially whites, blacks and asians of darker skin color than the pale, pure Han look, are inferior. There is also a strong cultural element - Confucian underpinnings, familiarity with at least several thousand written characters, Chinese herbal medicine,etc. Sure there are good things in all that, but, the pan Sinicists actually hate people who don't measure up.
In other words, " We need further intellectual property violations to be competitive in this field. "
Nothing is left to the imagination in those photos.
Now that sums it up nicely. A Dictatory money making operation under the guise of Communism. Well said!
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