SOURCE / ECONOMY
China's middle and western regions invest heavily on semiconductor sector
Published: Oct 13, 2021 12:24 PM
An employee showcases a semiconductor integrated circuit at an industry expo. Photo: VCG

An employee showcases a semiconductor integrated circuit at an industry expo. Photo: VCG


The semiconductor industry in the middle and western regions of the country is experiencing rapid growth with imports of semiconductor manufacturing equipment grew 31.3 percent year-on-year, customs data showed on Wednesday.

Companies across the regions imported chip manufacturing equipment worth 72.2 billion yuan ($11.2 billion) in the first three quarters, accounting for 44.3 percent of the country's total, Li Kuiwen, spokesperson of the General Administration of Customs, said at a press conference on Wednesday.

Over the period, computer, telecommunications and other electronics manufacturing industry in the middle and western regions posted imports and exports worth 2.01 trillion yuan, up 25 percent, which drove the regions' foreign trade by 38 percent, according to Li.

Amid the country's call to develop third-generation semiconductors, local governments have moved to attract increased investment in recent years, with key cities in the middle and western regions like Xi'an, Northwest China's Shaanxi Province and Southwest China's Chongqing Municipality taking the lead.

Investment from electronics giants such as Samsung, ZTE and BYD Electronics in Xi'an city greatly contributed to an improved semiconductor and integrated circuit (IC) industry presence by attracting more leading companies.

In addition, local governments have released a plan to develop the city's semiconductors, high-end software and smart network sectors through to 2025, aiming to build a globally competitive electronics and information innovation center there.

As a city leading the development of IC industry, Chongqing has a solid foundation for developing semiconductors. Official data showed that the municipality's IC design sector posted sales growth of 206.1 percent year-on-year last year, ranking it first in the country.

In October 2020, the municipality entered into a strategic cooperation agreement with neighboring Sichuan Province aimed at boosting technological breakthroughs, jointly building characterized industry hubs and strengthening talent nurturing in an effort to boost the transformation and high-quality development of the electronics and information industry in the southwestern region.

China, with its advantages in manufacturing and huge market, is expected to establish a complete chip industrial chain at an ever-faster pace, as the global pandemic has hammered semiconductor industrial chain, especially manufacturing centers in Southeast Asian countries, Ma Jihua, a veteran industry analyst, told the Global Times in a recent interview.

"It is also in line with China's own pace cultivating an independent approach of high-tech development," Ma said.

Global Times