What is the current investment boom in the IC industry?

The Securities Times reporter attended the "Micro-Semiconductor Summit" organized by Jiwei.com, Xiamen Semiconductor Investment Group, and Mobile China Alliance. Since September 2014, the industry has been supported by the National Integrated Circuit Industry Investment Fund, which has triggered a wave of investment enthusiasm. The semiconductor sector has seen a surge in capital inflows, with multiple regions across China establishing large-scale investment funds to support the development of integrated circuits. Currently, cities such as Beijing, Shanghai, Shenzhen, Nanjing, Hefei, Xiamen, Wuxi, Shijiazhuang, and Kunshan, along with provinces like Fujian, Hubei, Anhui, Shaanxi, Guangdong, Sichuan, and Liaoning, have all launched billion-yuan-level investments in the integrated circuit industry. The total fund size has reached 138.72 billion yuan, while the combined scale of enterprises and local industrial funds exceeds 500 billion yuan. This rapid expansion highlights the growing importance of semiconductors in China's economic strategy. Wang Yanhui, founder of Jiwei.com, believes that if the past five years were the golden era for mobile phone concept stocks, then the next five to ten years could see a major breakthrough for IC (integrated circuit) concept stocks. The summit attracted over 100 CEOs from domestic and international semiconductor companies, 50 government officials, scholars, and academicians, 50 leading semiconductor investment institutions, and 150 brokerage analysts, underscoring the industry's rising significance. The domestic semiconductor industry is experiencing a surge in asset securitization. In recent years, several IC companies, including Huiding Technology, Zhaoyi Innovation, Fu Weiwei, Shengbang Shares, Guokewei, and Weir Shares, have made their way into the A-share market. According to micro-grid statistics, there are more than 20 IC design companies listed on the market, with over 70 A-share listed companies in the semiconductor and component industries, collectively valued at nearly 400 billion yuan. Since early 2016, the semiconductor sector has raised over 22 billion yuan through the A-share market, enabling companies like Changjiang Electronics and Tongfu Microelectronics to expand overseas via mergers and acquisitions. A key player in this boom is the National Integrated Circuit Industry Investment Fund, established on September 24, 2014, with a registered capital of 98.72 billion yuan. It was jointly founded by Guokai Finance, China Tobacco, Yizhuang Guotou, China Mobile, Shanghai Guosheng, China Electronics, Ziguang Communication, and Huaxin Investment. The fund has partnered with companies like Zhongwei Semiconductor, SMIC, Ziguang Group, Sanan Optoelectronics, Big Dipper, and Silan Micro to invest in the industry. However, concerns remain about whether the current investment boom might lead to overcapacity, similar to the photovoltaic industry. Dr. Zhang Yujing, known as the "father of Chinese semiconductors," analyzed the situation from two perspectives. On the optimistic side, he noted that current domestic production capacity only meets 15% to 30% of market demand, and fab expansion is far from saturation. Any future surplus could be addressed through mergers, integration, and international market exploration. On the cautious side, he warned that the rush to invest may lead to inefficiencies, given the high input, high risk, and slow returns of the semiconductor industry. Zhang also emphasized the technological gap between China and global leaders in semiconductors, urging local governments to remain rational and avoid impulsive decisions. He stressed that while government support is important, the ultimate success of the industry depends on market forces and innovation. Chen Datong, chairman of the Huachuang Investment Investment Committee, echoed the need for caution. He pointed out that as more semiconductor companies enter the capital market, two issues require attention: the potential for a mixed quality of new entrants due to lower thresholds, and the need for companies to use their financing effectively for sustainable growth. He argued that the market must solve its own problems, and that companies relying solely on government funding often fail. Instead, the industry should focus on collaboration, resource sharing, and regional coordination to enhance overall competitiveness. Industry experts believe that China has become one of the most dynamic regions in the global semiconductor industry, with clusters forming in areas like the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Pearl River Delta, and emerging zones in the central and western parts of the country. Wang Huilian, general manager of Xiamen Semiconductor Investment Group, acknowledged that while the industry appears vibrant, it still faces challenges. He highlighted the lack of self-sustaining profitability and the need for better R&D and scale expansion. He also pointed out that traditional funding models are not aligned with the pace of development, and resource coordination remains weak. Looking ahead, Wang suggested that each region should leverage its unique resources and pursue differentiated strategies. For example, Xiamen, as part of the Weinan Triangle, is building a complete industrial chain covering chip design, manufacturing, packaging, testing, equipment, and materials. At the summit’s roundtable discussion, participants agreed that the current state of China’s IC companies—numerous but small and fragile—calls for greater integration. They believe that the next few years will focus on consolidation, and that the long-term outlook for IC concept stocks is promising. However, success will depend not on size alone, but on delivering better products, services, and value. Finally, Zhang Yujing advised against hasty M&A activities, warning that overly aggressive acquisitions can lead to overpayment and cultural clashes. He recommended careful planning and post-merger integration to ensure long-term success.

Lifting Columns

Lifting Columns,Lifting Column,Linear Servo Actuators,Linear Servo

Kunshan Zeitech Mechanical & Electrical Technology Co., Ltd , https://www.zeithe.com