Building up China’s ability to develop and manufacture its own semiconductors is a key goal of the government’s “Made in China 2025” strategy issued in 2015. The plan seeks to catapult China to the forefront of the world’s modern economies, but the trade war with the U.S. that has seen bans on chip exports to major Chinese companies has added new urgency to the effort.
Made in China 2025 sets self-sufficiency goals for semiconductors at 40% for 2020 and 70% for 2025.
Self-sufficiency is viewed through the lens of national security. But China had reached only 15% for semiconductors in 2018, putting the targets in question.
“While U.S. pressure may affect the operations of companies such as Huawei Technologies in the short run, on a medium- to long-term basis, Chinese manufacturers will increase procurement from within China, and it will result in the growth of domestic equipment and materials makers,” said Lung Chu, president of industry association SEMI China.
The country is slow in developing semiconductor production equipment and materials. But China has produced the likes of HiSilicon, a world-class semiconductor designer owned by Huawei.
On January 16th 2018, Beijing-based NAURA Microelectronics Equipment successfully acquired the surface preparation business of Pennsylvania-based Akrion Systems. Upon completion of the transaction, the new entity NAURA Akrion Inc. became a subsidiary of NAURA in the United States.
On Dec 3rd, 2018, China’s Wingtech Technology announced plans to jointly acquire a controlling stake of Dutch semiconductor company Nexperia, with investors including Gree Electric Appliances.
As one of the world’s largest phone ODMs, Wingtech’s move towards the upstream in semiconductors not only ensures its supply chain stability on key semiconductor parts, but also enhances the company’s core business competitiveness.
https://syncedreview.com/2019/04/26/the-10-biggest-semiconductor-ma-deals-in-2018/