Introduction of Microelectronics Industrial Base
in Shanghai and nearby area
 
    
   The integrated circuits industry of China has come to a historical turning point and merged into a new world wide wave of IC industrial configuration adjustment along with the trend of globalization. Since the construction of SMIC, GSMC, a large number of IC production lines ,designs, packaging and testing projects come in succession. A microelectronics industrial chain is being formed in Shanghai. Shanghai is becoming one of the most important IT bases in China. The historical background, overall planning, project goal and newest development of microelectronic industrial base in Shanghai will be described as follows.

 
 

Historical background of Shanghai Microelectronic Industrial Base

The current status of IC industry in Shanghai

The predominance to develop IC industry

Outline of the programme of Shanghai microelectronic industrial base

Concluding Remarks

 
A. Historical background of Shanghai Microelectronic Industrial Base.

  With the great attention and support from the central government, Shanghai microelectronic industry has rapidly developed. Early in the eighties Mr. Deng Xiaoping inspected personally Shanghai Beiling microelectronic Corporation and General secretary Jiang Zemin autographed for "Shanghai Cao He Jing Microelectronic Industrial Region" for the first microelectronic industrial base of China. In 1996, the central government decided to build Huahong NEC IC production line with 8 inches and 0.35¦Ìm technology in Shanghai which made the IC gap between China and advanced countries narrowed by two generations and helped China's IC industry approach the international standard at that time. The project seized the advantageous opportunity and achieved great success. Meanwhile, it has proved fully to the people at home and abroad that the environment of Shanghai is suitable to the IC industry. Shanghai are well qualified to assimilate and master newest international fabrication and management technology of integrated circuits.
In September,2000 Shanghai Economic Commission worked out "Tenth Five-year plan" of Shanghai IC industry, which was one of some special projects of Shanghai "Tenth Five-year". It puts forward evidently the development aim of Shanghai microelectronic industry and the general configuration of Shanghai microelectronic industrial base. The programme of Shanghai microelectronic industry base is not a moment's enthusiasm, but a strategical act which started at the low tide of semiconductor and has made much progress in the last 3 years. Some new 8'' IC foundries , fabless design companies and back end IC enterprises have been set up in succession.


B.The current status of IC industry in Shanghai .
There are 274 semiconductor related enterprises which include 104 design companies, 9 IC fabrication factories , 25 testing & packaging companies, 54 material & equipments factories, 14 IC accessories manufacturing factories , 31 smart card fabrications, 7 discret device manufacturing and other 30 related enterprises.
Table 1a. The IC foundries in Shanghai and nearby area:
Name
time Built
Minimum feature(micro)
Yearly output
Shanghai Belling Corp. Ltd.

1988/9

2003

0.8-1.2

0.25-0.18

4inch /160,000 chip

8inch/

Shanghai Advanced Semiconductor Manufacture Corp.

1992/4

2003

0.60.25-0.18

5-6 inch /480,000chip

8inch/

Shanghai Huahong NEC Corp. Ltd. 1999/2 0.35-0.24 8 inch/240,000 chip
SMIC 2002 0.25-0.18(0.13) 8inch/
GSMC 2003 0.25-0.18 8inch/
TSMC 2003 0.25-0.18 8inch/
He Jian (Suzhou) 2003 0.25-0.18 8inch/
Shanghai Xinjin 1995 2.0-1.0 6inch/
Huajing £¨Wuxi£© 1993 0.6 5-6inch/

Table 1b. The package-test business (partly)

Name
time Built
Amount of investment
£¨million US dollar£©
Production capacity
(million chip/y)
Shanghai ¦Á-tech 1996 75 300
Shanghai Panasonic 1996 29 35
Shanghai Xinguang 1996 30.45 300
Shanghai Huaxu 1996 6.1 30
Jinpeng Package 1996 142.54 880
An Kao (Shanghai)     LQFP£¬CABGA£¬TSOP£¬PLCC
Shanghai Intel 1997 198 50
1200
FCBGA£¬ISOP£¬MBGA£¬
SCSP£¬VBGA
Shanghai Jinpeng     1500
PDIP,PLCC,SOIC,SSOP,TSSOP,BGA/CSP
Shanghai Jiyuan Weike     1000
DIP,SOP,QFP
Shanghai Wei Yu     WLCSP£¬BGA
Shanghai Panasonic     50
QFP£¬SQFP£¬LQFP£¬PLCC£¬DIP

Table 1c. Design/Design software business (partly)

Name
Built time
Amount of Investment
(million US dollar)
Design standard(micro)
Application of production
Shanghai Xinmao 1994 10 1-0.35/CMOS ASIC for communication and consumption
Shanghai Belling 1996 3 1.2-3 ASIC
Fudan Microelectronics 1998 1.2 1.0/CMOS ASIC
South Huahong 1998 10 0.5/CMOS ASIC/MCU
Epson 1995 3 0.35 ASIC
UMC 1993 3 0.50 ASIC/MCU
Lattice 1995 2 0.35 FPGA
Magima 1998 0.3 0.35 Embedded system ASIC
Newave 1997 1.4 1.0-0.5 Communication and consumption
Pericom 1995 2 1.0-0.8 ASIC
Bell EDA 1996 1 1.0-0.5 Communication
Changjiang 1987 0.03 2.0/CMOS Communication
Hongdian 1993 0.02 3-2 ASIC
Hualong Facsimile Machine 1996 0.02 1.0 Facsimile Machine ASIC
ESS 1999 0.25 0.25-0.18 Information/Household electrical appliance
Trident 1999 4 0.25-0.18 Multimedia DVD
Amlogic 1999   0.25
Information/Household electrical appliance
IC Center of Broadcast Television 1999 1M   Consumption
Jiaotong University   2 1.0 ASIC

Table 1d. Other related IC business

Name
Major Production
Amount of Investiment
(million US dollar)
Shanghai Dupon Mask Corp. Ltd. Mask 15

Shanghai Silicon Material Factory
4-6 inch silicon wafer 2
Shanghai General Silicon Corp. Ltd. 4-6 inch silicon wafer 2.1
Shanghai General Silicon Material Corp. Ltd. Mono-crystalline silicon 7.7
Sanjing Hi-tech Corp. Ltd. Leading wire frame 25
Jintian Electronic Corp. Semiconductor material 9
Boke Industrial Gases Corp. Ltd. Industrial gas 11
Praxair Industrial gas 15.6

C. The predominance to develop IC industry
(1) Shanghai has the biggest industrial hinterland. Taking Shanghai as the dragon head, Changjiang Delta region is one of the most developed area in China economy. Five of six IC manufacturing enterprises are located there . This area is becoming the heart of electronic information industry transfer. Shanghai microelectronic base allied with Jiangsu and Zhejiang will finally form the "Silicon Industrial Band " in the Changjiang Delta region.

(2) Shanghai has best commercial environment. The historic traditional relationship with foreign countries and the national strategical position as "One dragon head, three-center" after reform and open door make Shanghai has most complete banking and commercial service systems. It offers very good environment for IC high-tech industry and capital market exchange as well as the commercial operation according to international practice.

(3) Shanghai has strongest qualified personnel warehouse. The total amount of universities and scientific institution in Shanghai is just second to that in Beijing. Meanwhile Shanghai has strongest attractive force to people at home and abroad.

(4) Shanghai has most perfect fundamental facilities. No matter transportation, communication or water, electric power, no bottleneck will restrict IC development in Shanghai. The construction speed of fundamental facilities makes the world look steadity.

(5) Shanghai has first-class education and medical treatment conditions: There are 30 universities and colleges which will train more than 4000 skilled persons related with IC. The ASIC & System State Key Lab and National Micro-Analysis Center of Fudan University, LSI Circuits Institute of Jiao Tong University and Shanghai Institute of Metallurgy are all very important research bases for developing IC industry in our country. As for the education of high and primary schools, there are 25 international schools. Six among them are located in Pudong.

(6) Shanghai has very good nature environment.

D. Outline of the programme of Shanghai microelectronic industrial base
1. Development Aim
Construct and put into production about 10-15 IC production lines (8~12 inches) and packaging, testing lines as well as design companies. Form several world-class chip enterprises and R&D base for forward position technology as well as personnel education-training system. Meanwhile, the equipment manufacture got a good start from fabricating spare parts locally and assembling to form most rapidly a new IC industrial base with largest scale during "Tenth Five-year Plan".
From 2010~2015, the total number of 8~12 inches IC production lines will exceed 30. It will become biggest semiconductor manufacturing packaging, testing base with largest scale and strongest competitive ability in the world. There will be numerous fabless, chipless enterprises to form some world-class integrated IDM companies and rich research & education abilities as well as good atmosphere for equipment enterprises.
2. Investment and output
15 billion USD will be invested during "Tenth Five -year plan". The value of output will reach 10 billion USD in 2005 which will be 80% in domestic IC market and 3% in global IC market.
3. Configuration programme
"One band-two regions" will be the shape programme of Shanghai Microelectronic Industrial Base (SMIB).
SMIB will reflect three " three -body merging into one body".
(1) To merge manufacturing, research and development, conveyance industry into one body. Taking manufacturing as main body, giving priority support to foundry, driving design and packaging, testing, to form complete industrial chain.
(2) To merge Taiwan, abroad and home funds into one body. Taking Taiwan fund as focal point to attract home and abroad fund. The marketable operation of main body of investment will be realized thoroughly. The duty of government is only to form the environment, not to invest directly.
(3) To merge land exploration, item construction and living environment into one body. Taking item construction as center, to make the combination of land exploration, function exploration with living conveyance. The entirety atmosphere to create IC industrial development at exploration level will be formed. Meanwhile, the complete common conveyance and semiconductor commune with east and west culture will be formed.
4. Programme measures
(1) Policy focusing
Under the basis of "some policies to encourage software and IC industry development" formulated by central government, Shanghai has worked out "some policies to encourage software and IC industry development of Shanghai" and " the suggestion of doing well the work for training microelectronic personnel". They include a series of conveyance policies, such as simplifying examination and approval, setting up industrial fund, carrying out interest-discount loans, tax reducing and remitting, preferential municipal resources, express customs passageway, strengthening related specialty education, encouraging exploration of new products and so on. The government of Pudong New Area has formulated also "some suggestions on further encouraging software and IC industry development in Pudong environment for developing IC industry in Shanghai.
(2) Strengthening management
Enlarge the dynamics of inviting outside investment of microelectronic items. Strengthen the tracking and coordination of microelectronic items. According to the principle of technology priority and earlier priority, those key projects listed in city weighty engineering will be handled particularly. Strengthen the united programme of microelectronic industrial base and municipal construction as well as town system.
(3) Improving service:
Clear some Policies and regulations which are not in according with international practice. Simplify examination and approval. Raise the efficiency to pass customs.
(4) Making good environment:
Construct common facilities, complete living set or system, education, personnel, environment construction.

E. Concluding Remarks

1. The developing trend of IC industry with large scale in China has appeared under the background of globalization and information era. Without doubt, Shanghai should bear responsibility for the updating of national industry, of which IC industry is an opening.
2. Assembling effect of Shanghai Microelectronics Base has come into being initially. We have confidence to realize the objective as long as no severe world economic crisis and recovering of the development of high tech.
3. Shanghai has favorable investment environment, which is more displayed after the semiconductor high tide. It is the best moment of investment in the low tide.
4. The scheme of Shanghai Microelectronic Industrial Base will be carried out depending on the talents and external capitals, not the government. It is just a guide to the investor. Shanghai government will break all outmoded convention and custom which don't agree with economic law and international routine to create satisfied environment for the investor.
5. The development of IC and IT industry can't separate. Shanghai will support the development of IT industry and attach importance of optic communication and the fourth generation mobile communication, which will be made a new hotspot after microelectronics. The limit of high-tech development will be resolved and better conditions will be created for the semiconductor industry.


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