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Looking At Localization Of Chips From Different Perspectives

May 10, 2018

China Semiconductor itself started late and encountered a technical blockade during the development process, which does not match the current economic scale of China. Future science and technology and advanced manufacturing industry need to be based on a strong semiconductor industry. Therefore, the development of semiconductors is particularly urgent at present. We are firmly optimistic about the prospects of domestic semiconductor manufacturing in China, and believe that semiconductor domestic products have the following characteristics:


    The United States has stepped up the blockade and localization of chips still has its way. China has accumulated in digital chips in the past, but the analog, power, FPGA and other chips related to complex processes are still subject to human beings. There are many market segments and types of these chips, and if they are missing, it will affect the normal operation of the products. In the ZTE event, the United States had a huge impact on ZTE after it stopped supplying chips. Even US-licensed products entered the restricted list.


    The US’s technological blockade against China continues to tighten, but China still has a way to go, and it can acquire technology through more cooperation with European companies. In addition, by investing more in overseas technology startup companies, it is also an effective way to avoid Patent restrictions and technical blockades.


    Breakthroughs in some key areas are also an effective way to ensure supply chain security. The global division of labor of semiconductors is obvious. In addition to the United States, Japan, South Korea, Taiwan and Europe have their own leading positions in different fields. Compared to achieving full localization, it is more feasible to achieve breakthroughs in some key areas. In the case of global division of labor, some areas are globally leading and can secure supply chain through patent mutual authorization.


No need for a software-supported chip, the localization success rate is higher. At present, localization of CPUs, GPUs, and other areas is relatively difficult. One is that intel, nvidia and other companies have accumulated a large number of patents, there is no open public version of the same as ARM; more importantly, these chip needs and software are highly Compatibility, even if the chip hardware performance indicators to achieve catch-up, but for a large number of software compatibility is not enough and will become a new problem, the existence of software does not support the risk of the chip.

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