China has set a target to generate $140 billion in semiconductor output by 2020, reports DigiTimes.
Europe’s target under the Neelie Kroes plan to raise the EU’s semiconductor production is to achieve $72 billion in semiconductor output in 2020.
The value of the 2020 world semiconductor market is thought to be around $400 billion.
As well as committing $10 billion a year over the next decade to build fabs, the China government is organising the companies to meagre resources.
The mobile chip firms Spreadtrum and RDA Microelectronics were acquired by State-control led Tsinghua Unigroup.
Also, Huawei, Datang Telecom, ZTE and Haier, have all committed investment to IC design houses.
China is pushing the integration of IC design houses and IC manufacturing companies such as SMIC, Huali Microelectronics Corporation (HLMC) and Changziang Electronics to result in branded IDMs.
‘The formation of large-scale IDMs is also one of the major tasks of China’s new Five-Year Plan that will fulfill the supply chain of its semiconductor industry’ says DigiTimes.
Also Taiwan-based IC design houses and IC backend service providers are likely to become ‘the preys to be hunted by China-based IC companies’, says DigiTimes.
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