CSIA New Year Wishes and Statement
In the year 2020, the global semiconductor industry has suffered the Covid-19 epidemic and geopolitical risks. From the whole industry’s pessimism at the beginning of the year, to the chips shortage and wafer production capacity tight supply at the end of the year, the semiconductor industry has experienced a wave of growth after a decline. The development of the global semiconductor industry deeply relies on the close cooperation of companies from all over the world. Standing at the threshold of Chinese New Year, “Year of the Ox", CSIA expects that the new U.S. administration can turn the China-U.S. economic and trade relations to normal tracks, create a fair and reasonable semiconductor business environment, and promote the innovative development of the global semiconductor industry in the best interests for global semiconductor companies and the majority of practitioners.
Semiconductor is the core of the information technology industry, which is a foundational and leading industry that supports economic and social development. Since the first integrated circuit was born in the 1950s, the global semiconductor industry has continued to progress and develop in accordance with "Moore's Law". As a global industry, division of labor has been an important factor for the continuous progress and development, and prosperity of semiconductor technology and industry. No country alone can cover the entire semiconductor industry chain. Conducting open, fair, and non-discriminatory free trade standards, and continuing to focus on and support technological innovation are not only the cornerstone of the success of the semiconductor industry, but also a necessary prerequisite for global consumers to enjoy the well-being of science and technology.
Semiconductor technology was born in the United States. Today, the United States is still the leader in the semiconductor industry. Although since the 1980s, companies in Japan, South Korea, and China Taiwan have been increasingly competitive in the global semiconductor market, the United States still dominates the development of global semiconductor technology and industry. U.S. semiconductor companies maintain a leading position in chip design, equipment, materials, tools, and new technology innovation, and are extremely competitive. The global market share of the U.S. semiconductor industry is close to 50%. It has brought sustained and stable economic benefits to the United States, and it has also created more than 1 million jobs for the United States.
China is an indispensable part in the global semiconductor industry landscape. As the world’s major electronic information manufacturing base, China’s demand for various semiconductor products is extremely strong, which prompting China an important engine for the development of the global semiconductor industry, and contributing greatly to the world semiconductor industry.
China's achievements in the field of integrated circuits are inseparable from the support of partners in the global market, supply chains and industrial chains. Over the years, China's integrated circuit industry has always been adhering to the principle of "open development", deepening international cooperation from multiple levels of market, capital, talent, and technology, and continuing to promote the development of global industries. In 2020, the sales revenue of China's IC industry is expected to approach 900 billion yuan. Among them, foreign-funded enterprises contributed more than 30%. More than half of the world's top 20 semiconductor companies have established production bases or R&D centers in China. Among the ten 12-inch fab lines that have been built, eight are with foreign capital and foreign equity participation. China has always been developing steadily within the framework of the global semiconductor industry layout and has not changed the industry pattern significantly.
The previous U.S. administration adopted a non-market-based approach to arbitrarily sanction and suppress the Chinese companies concerned, and even cut off their supply chains, causing serious damage to the long-standing and relatively stable global industrial layout. If things go on like this, it will inevitably lead to a re-adjustment of the global semiconductor industry layout, making the global semiconductor industry, especially the supply chains, continue to be in turmoil and uncertainty, thereby harm the interests of the industry and end users.
As the new U.S. administration is performing its duties, CSIA, on behalf of China’s semiconductor industry and enterprises, hopes that the new U.S. administration will look into the future and make new efforts for the healthy development of the global semiconductor industry, maintain the global industrial layout and correct the previous government’s improper practices and bring new vigor and vitality into the global semiconductor industry. As a leader in global semiconductor technology, the United States has the obligation to bring the global semiconductor industry back to normal while gaining huge benefits from the globalization. We are looking forward that the new U.S. administration, and the world's major semiconductor industry organizations, including SIA, will work together to make a positive contribution to the development of the global semiconductor industry.
As the Chinese New Year is approaching, CSIA wishes the global semiconductor industry a prosperous new year, global semiconductor companies a healthy development so as to contribute more benefits to the human society.
China Semiconductor Industry Association
Chinese New Year, 2021