How can Chinese chip companies compete with foreign companies?

Xiamen Semiconductor Investment Group Co., Ltd. (hereinafter referred to as "Semiconductor Investment Group") is a state-owned investment company serving Xiamen industrial upgrading and technological innovation. As the world's largest integrated circuit market, China has ushered in a historical opportunity to develop the integrated circuit industry. China has decided to take the integrated circuit industry as a strategic, basic and leading industry. Xiamen Semiconductor Investment Group plans the integrated circuit industry as the leading industry. By means of investment, merger and acquisition, capital operation and fund management, Xiamen Semiconductor Investment Group will build a market-based industrial resource integration platform, covering key products and core technologies in the fields of integrated circuit design, integrated circuit packaging and testing, product-oriented special technology and integrated circuit equipment and materials. And key application projects (enterprises) and so on. The objectives and tasks of Semiconductor Investment Group:

First, from the strategic layout of the integrated circuit industry chain, we should practice the management concept of "internationalization, marketization and innovation", take investment as a link, provide all-round services through integrating various elements of capital, technology, talent and market, and strive to become an internationally influential scientific and Technological Industrial group.

2. Give full play to the leverage role of special funds for integrated circuit industry, and cooperate with social capital and industrial capital to set up industrial investment funds or to increase investment in various industrial funds with integrated circuit as the main investment direction.

To set up and train a professional investment and operation team, with simplicity, professionalism, focus, efficiency, cooperation and strivers as the foundation, promote the investment development of integrated circuit industry, and become the core force in line with the construction of innovative value chain.

Semiconductor is the core industry. With the growth of China's semiconductor industry and the investment of China's semiconductor industry fund, China's semiconductor industry has become the focus of attention. On January 6, 2017, the White House issued a report that the development of semiconductor technology in China has threatened the chip manufacturers in the United States, as well as the national security of the United States. It is suggested that a more rigorous review of the business activities of Chinese chip companies be carried out. The United States has called a halt to a number of semiconductor mergers and acquisitions by Chinese companies in Europe and the United States.

Looking specifically at the joint venture, Qualcomm has been specializing in high-end market, Exhibition News (Exhibition Communications Co., Ltd., now under Ziguang Technology Group Co., Ltd.). Lianfa Branch (Taiwan Lianfa Science and Technology Co., Ltd.) specializes in low and medium-end markets. As a result, Qualcomm has little competition with Exhibition News. This time, Qualcomm entered the middle and low-end market by way of Datang, and competed with Exhibition News and United Development Section. And low-end mobile phone chips are the base for Chinese companies to catch up with overseas giants such as Qualcomm.

In recent years, domestic mobile phone chip design enterprises have made rapid progress. In the mobile phone chip market, apart from Samsung, Apple and Huawei Haisi, which mainly supply their own mobile phones, Qualcomm, Unicom and Exhibition have 80% market share of mobile phone chips. Domestic chip designers such as Exhibition News are expected to extend to the mid-end and even high-end.

In view of the above background, while the State Fund is also vigorously supporting the semiconductor industry, the alliance between Datang Telecom, China Jianguang and Gaotong, a state-owned company, has aroused wide debate.

Xiamen Semiconductor Investment Group Co., Ltd. (hereinafter referred to as "Semiconductor Investment Group") is a state-owned investment company serving Xiamen industrial upgrading and technological innovation. As the world's largest integrated circuit market, China has ushered in a historical opportunity to develop the integrated circuit industry. China has decided to take the integrated circuit industry as a strategic, basic and leading industry. Xiamen Semiconductor Investment Group plans the integrated circuit industry as the leading industry. By means of investment, merger and acquisition, capital operation and fund management, Xiamen Semiconductor Investment Group will build a market-based industrial resource integration platform, covering key products and core technologies in the fields of integrated circuit design, integrated circuit packaging and testing, product-oriented special technology and integrated circuit equipment and materials. And key application projects (enterprises) and so on. The objectives and tasks of Semiconductor Investment Group:

First, from the strategic layout of the integrated circuit industry chain, we should practice the management concept of "internationalization, marketization and innovation", take investment as a link, provide all-round services through integrating various elements of capital, technology, talent and market, and strive to become an internationally influential scientific and Technological Industrial group.

2. Give full play to the leverage role of special funds for integrated circuit industry, and cooperate with social capital and industrial capital to set up industrial investment funds or to increase investment in various industrial funds with integrated circuit as the main investment direction.