MAINLAND CHINA’S SEMICONDUCTOR AND EQUIPMENT MARKETS: A COMPLETE ANALYSIS OF THE TECHNICAL, ECONOMIC, AND POLITICAL ISSUES

Chapter 1 Introduction 1-1

1.1 Introduction 1-1

Chapter 2 Semiconductor Industry 2-1

2.1 Introduction 2-1
2.2 China’s Domestic Semiconductor Market 2-5
2.3 China’s Semiconductor Infrastructure 2-5
2.4 Government Goals 2-7
2.5 Semiconductor Manufacturers In China 2-9
2.5.1 Wuxi China Resources Huajing Microelectronics 2-13
2.5.2 China Resources Microelectronics Ltd 2-14
2.5.3 Grace Semiconductor Manufacturing 2-15
2.5.4 Hangzhou Youwang Electronics 2-16
2.5.5 Huayue Microelectronics 2-17
2.5.6 Semiconductor Manufacturing Int’l (SMIC) 2-18
2.5.7 Advanced Semiconductor Manufacturing (ASMC) 2-19
2.5.8 Fairchild Semiconductor 2-20
2.5.9 Shanghai Belling 2-22
2.5.10 SK Hynix 2-23
2.5.11 Toshiba Semiconductor (Wuxi) 2-24
2.5.12 He Jian Technology 2-25
2.5.13 TSMC 2-26
2.5.14 Ningbo BYD Semiconductor 2-26
2.5.15 SIM-BCD 2-27
2.5.16 Intel 2-28
2.6 Back-End Manufacturing 2-29
2.7 Printed Circuit Board (PCB) Manufacturing 2-39
2.8 Microelectronics Industry Equipment 2-50
2.9 IC Design 2-51
2.10 Electronics Components 2-55
2.11 Role Of Foreign Companies 2-56
2.12 IC Industry Assessment 2-58

Chapter 3 Market Analysis 3-1

3.1 Economic Recovery In Asia 3-1
3.2 Semiconductor Market 3-3
3.3 Semiconductor Equipment Market 3-21
3.4 Telecommunications 3-26
3.4.1 Wireless 3-26
3.4.2 Internet 3-32
3.5 Computers 3-34

Chapter 4 High-Tech Sectors 4-1

4.1 Introduction 4-1
4.2 Telecommunications 4-4
4.2.1 China Telecom 4-4
4.2.2 China Mobile 4-6
4.2.3 Domestic Competition 4-7
4.2.4 Foreign Competition 4-8
4.3 Computers 4-10
4.4 Optoelectronics 4-12
4.5 Software 4-15
4.6 Consumer Electronics 4-18
4.7 Chemicals 4-20
4.8 Environmental Industry 4-23
4.9 TFT-LCD Technology 4-23

Chapter 5 High Technology Industry Development Zones 5-1

5.1 Introduction 5-1
5.2 Torch Program 5-8
5.3 High Technology Industry Development Zones 5-17
5.3.1 Anhui Province 5-17
o Hefei High And New Technology Industry Development Zone 5-17
5.3.2 Beijing 5-19
o Beijing Experimental Zone For The Development Of New Technology Industries 5-19
o Changping Park Of Bez 5-21
o Fengtai Park Of Bez 5-21
5.3.3 Fujian Province 5-22
o Fuzhou Science And Technology Park 5-22
o Xiamen Torch High Technology Industry Development Zone 5-23
5.3.4 Gansu Province 5-25
o Lanzhou High And New Technology Industry Development Zone 5-25
5.3.5 Guangdong Province 5-26
o Foshan High And New Technology Industry Development Zone 5-26
o Guangzhou Tianhe High And New Technology IndustryDevelopment Zone 5-27
o Huizhou Zhongkai New Technology Industry Development Zone 5-29
o Shenzhen Science And Technology Industrial Park 5-29
o Zhongshan High & New Technology Innovation Service Center 5-30
o Zhuhai High And New Technology Industry Development Zone 5-31
5.3.6 Guangxi Zhuang Autonomous Region 5-33
o Guilin High And New Technology Industry Development Zone 5-33
o Nanning New Technology Industry Development Zone 5-34
5.3.7 Guizhou Province 5-35
o Guiyang Xintian New Technology Industry Development Zone 5-35
5.3.8 Hainan Province 5-36
o Hainan International Industrial Park 5-36
5.3.9 Hebei Province 5-36
o Baoding New Technology Industry Development Zone 5-36
o Shijiazhuang High And New Technology Industry Development Zone 5-37
5.3.10 Heilongjiang Province 5-38
o Daqing High And New Technology Industry Development Zone 5-38
o Harbin High And New Technology Industry Development Zone 5-39
5.3.11 Henan Province 5-40
o Luoyang High And New Technology Industry Development Zone 5-40
o Zhengzhou High And New Technology Industry Development Zone 5-41
5.3.12 Hubei Province 5-42
o Wuhan Donghu New Technology Development Zone 5-42
o Xiangfan High And New Technology Industry Development Zone 5-42
5.3.13 Hunan Province 5-43
o Changsha High And New Technology Industry Development Zone 5-43
o Zhuzhou High And New Technology Industry Development Zone 5-44
5.3.14 Inner Mongolia Autonomous Region 5-45
o Baotou Rare Earth High And New Technology Industry Development Zone 5-45
5.3.15 Jiangsu Province 5-46
o Changzhou High And New Technology Industry Development Zone 5-46
o Nanjing High And New Technology Industry Development Zone 5-47
o Suzhou High And New Technology Industry Development Zone 5-49
o Wuxi High And New Technology Industry Development Zone 5-51
5.3.16 Jiangxi Province 5-52
o Nanchang High And New Technology Industry Development Zone 5-52
5.3.17 Jilin Province 5-53
o Changchun High And New Technology Industry Development Zone 5-53
o Jilin High And New Technology Industry Development Zone 5-54
5.3.18 Liaoning Province 5-54
o Anshan High And New Technology Industry Development Zone 5-54
o Dalian High And New Technology Industrial Park 5-55
o Shenyang New-High-Tech Industrial Development Zone 5-57
5.3.19 Shaanxi Province 5-58
o Baoji High And New Technology Industry Development Zone 5-58
o Xi'an New Technology Industry Development Zone 5-59
5.3.20 Shandong Province 5-61
o Ji'nan High And New Technology Industry Development Zone 5-61
o Qingdao High-Tech Industrial Park 5-62
o Weifang High And New Technology Industry Development Zone 5-63
o Zibo High And New Technology Industry Development Zone 5-65
5.3.21 Shanghai 5-66
o Incubator Center Of High-Technology Of China Textile International 5-66
o Shanghai High And New Technology Industry Development Zone 5-67
o Shanghai Zhangjiang Hi-Tech Park 5-68
5.3.22 Shanxi Province 5-69
o Taoyuan High And New Technology Industry Development Zone 5-69
5.3.23 Sichuan Province 5-70
o Chengdu High And New Technology Industry Development Zone 5-70
o Chongqing High And New Technology Industry Development Zone 5-71
o Mianyang High And New Technology Industry Development Zone 5-72
5.3.24 Tianjin 5-74
o Tianjin New Technology Industrial Park 5-74
5.3.25 Xinjiang Uygur Autonomous Region 5-75
o Urumqi High And New Technology Industry Development Zone 5-75
5.3.26 Yunnan Province 5-76
o Kunming High And New Technology Industry Development Zone 5-76
5.3.27 Zhejiang Province 5-78
o Hangzhou High And New Technology Industry Development Zone 5-78
5.4 Free Trade Zones 5-78

Chapter 6 Economic Statistics And Analysis 6-1

6.1 Economic Climate 6-1
6.2 GDP
6-3
6.3 Employment Sector 6-5
6.4 Inflation 6-6
6.5 Retail Sales 6-7
6.6 Foreign Trade 6-8
6.7 Consumer Spending 6-9
6.8 Investments 6-10
6.9 Economic Statistics 6-11
6.10 National Bureau Of Statistics (NBS) 6-13
6.10.1 Functions And Responsibilities 6-13
6.10.2 Leadership 6-14
6.10.3 Internal Setup 6-14
6.10.4 Overview 6-15

Chapter 7 Domestic Private Sector Issues 7-1

7.1 Economic Transformation 7-1
7.2 Private Sector Dynamics 7-3
7.3 Shift Of Government Policy 7-8
7.4 Private Sector Financing 7-10
7.5 New Rules Under The WTO 7-12

Chapter 8 Foreign Investment 8-1

8.1 Foreign Direct Investment 8-1
8.2 Turnaround 8-5
8.3 WTO Pledges 8-16
8.4 Can China Be Trusted 8-17
8.5 Venture Capitalists 8-21
8.6 Sino-Japanese Trade 8-24

Chapter 9 Political Issues 9-1

9.1 China's Foreign Policy 9-1
9.1.1 National Sovereignty 9-2
9.1.2 Opposing Superpowers 9-3
9.1.3 Peaceful Coexistence 9-3
9.1.4 Strengthening Solidarity 9-4
9.1.5 Relations With Developed Countries 9-4
9.1.6 Promoting China's Reunification 9-5
9.2 One Country, Two Systems 9-6
9.3 China-Taiwan Relations 9-9

List of Figures

3.1 China’s GDP 3-2
3.2 China’s IC Production 3-8
3.3 China’s IC Consumption 3-9
3.4 China’s IC Production/Consumption Ratio 3-11
3.5 China’s IC Import Requirements 3-12
3.6 China’s IC Supply/Demand 3-13
3.7 China’s IC Fab Capacity 3-14
3.8 China’s IC Fab Capacity by Region 3-15
3.9 China’s IC Fab Capacity by Wafer Size 3-16
3.10 China’s IC Fab Capacity by Geometry 3-17
3.11 China’s IC Applications 3-19
3.12 Semiconductor Equipment Forecast 3-23
3.13 Semiconductor Equipment Market Shares 3-25
3.14 China’s Revenue of Telecom Services 3-28
3.15 China’s 3G Subscribers 3-29
3.16 Cellular Subscribers In China And Asia 3-30
3.17 China's Cellphone Market 3-31
3.18 China's Internet Users 3-33
3.19 China's PC Market 3-35
4.1 Materials Forecast By Region 4-21
5.1 Map Of Regions Of China 5-3
6.1 China’s GDP Growth 6-4
7.1 Percentage Of Private Sector Industrial Output 7-5
7.2 Employment Growth Rates By Type Of Employer 7-7
7.3 Sources Of Finance By Company Size 7-11
7.4 Banking Constraints By Company Size 7-13
8.1 Direct Foreign Investment 8-12

List of Tables

2.1 Chinese IC Fab Construction 2004- Present 2-7
2.2 Chinese Foundry Construction 2004- Present 2-9
2.3 IC Technology Development In China 2-10
2.4 Major Packaging And Testing Companies In China 2-31
2.5 China IC Packaging And Testing Firms: Joint 2-32
2.6 China IC Packaging And Testing Firms: Wholly-Owned Taiwan Firms 2-33
2.7 China IC Packaging And Testing Firms: Locally-Owned Firms 2-35
2.8 China fabless IC design firms 2-54
2.9 Main Pure-Play Foundry Revenues In China 2-60
4.1 China's Leading Export/Import Partners For High-Technology Products 4-2
4.2 Main Software Parks In China 4-17
4.3 China’s Consumer Electronics Production 4-19
5.1 National High Technology Industry Development Zones 5-2
8.1 Top Foreign Investors In China 8-5
8.2 Foreign Direct Investment By Destination 8-14
8.3 Direct U.S. Foreign Investment 8-15
8.4 Top 20 Venture Capitalists 8-22