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在线翻译:
szdaily -> Business -> 
Chipmaking industry expands at fast pace
    2022-06-22  08:53    Shenzhen Daily

CHINA’S chip industry is growing faster than anywhere else in the world, after U.S. sanctions on the country’s tech champions from Huawei Technologies Co. to Hikvision spurred appetite for homegrown components, Bloomberg reported yesterday.

Nineteen of the world’s 20 fastest-growing chip industry firms over the past four quarters, on average, hail from the world’s No. 2 economy, according to Bloomberg data. That compared with just 8 at the same point last year.

Those Chinese mainland-based suppliers of design software, processors and gear vital to chipmaking are expanding revenue at several times the likes of global leaders Taiwan Semiconductor Manufacturing Co. (TSMC) or ASML Holding NV.

In 2020, the United States began restricting sales of American technology to companies like Shanghai-based Semiconductor Manufacturing International Corp. (SMIC) and Hangzhou Hikvision Digital Technology Co., successfully containing their growth — but also fueling a boom in Chinese chipmaking and supply, Bloomberg said.

China is expected to invest billions of dollars in the sector under ambitious programs such as its “Little Giants” blueprint to endorse national tech champions, and encourage “buy China” tactics to sidestep U.S. sanctions.

The rise of indigenous names has caught the attention of some of the pickiest clients: Apple Inc. was said to consider Yangtze Memory Technologies Co. as its latest supplier of iPhone flash memory.

“The biggest underlying trend is China’s quest for self-sufficiency in the supply chain, catalyzed by COVID-related lockdowns,” Morningstar analyst Phelix Lee wrote. “Amid lockdowns, Chinese customers who mostly use imported semiconductors need to source homegrown alternatives to ensure smooth operations.”

Orders by Chinese firms for chip-manufacturing equipment from overseas suppliers rose 58% last year as local plants expanded capacity, data provided by industry body Semi show. Total sales from Chinese-based chipmakers and designers jumped 18% in 2021 to a record of more than 1 trillion yuan (US$150 billion), according to the China Semiconductor Industry Association.

A persistent chip shortage that’s curtailing output at the world’s largest makers of cars and consumer electronics is also working in local chipmakers’ favor, helping Chinese suppliers more easily access the international market — sometimes with premiums tacked onto the best-selling products, such as auto and PC chips.

SMIC and Hua Hong Semiconductor Ltd., the biggest contract chipmakers on the Chinese mainland, have kept their Shanghai-based plants operating at almost full capacity even as recent COVID-19 outbreaks paralyze factories and logistics across China.

With local authorities’ help, cargo flights from Japan delivered essential materials and gear to chip plants as Shanghai went under lockdown. SMIC recently reported a 67% surge in quarterly sales, outpacing far larger rivals GlobalFoundries Inc. and TSMC.

Shanghai Fullhan Microelectronics Co.’s revenue grew 37% on average because of high demand for its products. The video chip designer has pledged to expand into electric vehicles and AI after winning its “Little Giant” designation. And design tool developer Primarius Technologies Co. doubled sales on average over the past four quarters, saying it’s developed software that can be used in making 3-nanometer chips.

Putting aside long-term profitability concerns, Morningstar’s Lee said the aggressive capacity build-up from Chinese players will elevate their presence globally.

“There’s little doubt Chinese chipmakers can achieve revenue growth over the next few years from cars, consumer electronics and other devices,” he said.

(SD-Agencies)

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