Himfr.com Reports China's Chip Makers Need To Accelerate The Integration
According to foreign media reports, because of advanced technology investment company
in Abu Dhabi-ATIC, acquisition of Singapore's Chartered Semiconductor chip industry will increase competition in the weaker firms may be marginalized and thus a loss of mainland China's chip makers may be forced to accelerate the pace of integration.China chip manufacturing lags behind Taiwan, Japan and South Korea, but because of growing demand, China hopes to strengthen the domestic chip industry. Since there is no master key technology and inadequate investment, in spite of taxation, land and R & D funds to enjoy the country's preferential policies, the Chinese mainland chip factories are uncompetitive and can not turn around.
Analysts pointed out that mainland China chip makers to improve the competitiveness of the only way is through the merger to scale better with the ATIC-Chartered Semiconductor, TSMC and UMC to compete. Oliver Xu analyst at Gartner, said, "The merger will help chip makers in mainland China integrate resources, reduce costs, expand customer base and strive to compete with the front-line chip makers a better opportunity."
Chip makers in mainland China has been losing money. As of September 30 in the third quarter of fiscal year 2009, SMIC losses from last year's 30.29 million U.S. dollars increased to 69.35 million U.S. dollars. In contrast, UMC third-quarter profit of 60.9 billion new Taiwan dollars.
According to market research firm iSuppli said that China is the world's fastest-growing chip market in 2013 will account for 29% of the global chip market. Nomura Securities analyst Rick Hsu said that the Chinese government's goal is to SMIC integrating the major chip manufacturers. He said that SMIC may buy into a new core-core semiconductor and semiconductor chip manufacturing plant. At present, SMIC responsible for managing the two companies chip manufacturing plant.
Xu pointed out that, once into the core and new core profitability, SMIC acquired they are very wise, because it helps increase their productivity and revenue, but also no need to bear substantial depreciation.
Semiconductor Manufacturing International Investor Relations Manager Guan-Ju said that the company is willing to consider any opportunities, but did not comment further.
Analysts pointed out that the Grace Semiconductor and Shanghai Hua Hong NEC could merge Electronics Co., Ltd., Shanghai Advanced Semiconductor Manufacturing Co., Ltd. Shanghai Belling-ASMC may record silicon Microelectronics Co., Ltd. merged. ASMC one executive said that at present the company has no acquisition plans, but said that with overseas chip makers increasingly fierce competition. Once the Government to relax the investment restrictions in Taiwan, Taiwan chip makers will also be set up factories in mainland China, when the competition will become more intense.
Despite the adoption of integrated chip makers to enhance the strength in mainland China will take time, but many analysts believe the mainland market, given the growth potential of the combined chip manufacturers in mainland China will be possible to challenge TSMC and UMC.
Vincent Gu analyst at iSuppli, said the cost of rising competition from mainland China will reduce the number of chip makers, the merger will bring economies of scale, the Chinese government can concentrate resources to help the integrated chip makers catch up with technologically advanced world level.
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