Analysis of China's three hot spots in the development of integrated circuit industry

On April 25, the State Council Information Office held a press conference on the development of the industrial and communications industry in the first quarter of 2018. Chen Yin, chief engineer and spokesperson of the Ministry of Industry and Information Technology, introduced the development of the industry and communications industry in the first quarter of 2018, and together with the Director of the Information and Communication Development Department of the Ministry of Industry and Information Technology, Wen Ku, Deputy Director of the Operational Monitoring and Coordination Bureau of the Ministry of Industry and Information Technology, Huang Libin Hot topics such as industrial development, speed-up and fee reduction, narrow-band Internet of Things, and manufacturing of a strong country were answered.

The hot spot will reduce the import tariff of the automobile. The Ministry of Industry and Information Technology will further implement the opening requirements of the automobile, shipbuilding and aircraft industries on the basis that the manufacturing industry has been basically opened.

Reporter: General Secretary Xi Jinping mentioned in the keynote speech of the Boao Forum for Asia that it is necessary to relax the restrictions on foreign investment in automobiles as soon as possible and reduce the import tariffs on automobiles. What impact will this have on domestic related industries? How will the Ministry of Industry and Information Technology implement it?
Chen Yin: On the occasion of the 40th anniversary of reform and opening up, General Secretary Xi Jinping announced at the Boao Forum for Asia a significant liberalization of market access, creating a more favorable investment environment, strengthening intellectual property protection, and actively expanding imports and other significant landmarks. The opening measures further demonstrate China's determination and will to firmly push for a new round of greater reform and opening up.

A substantial relaxation of market access is a win-win situation. In accordance with the deployment of the Party Central Committee and the State Council, the Ministry of Industry and Information Technology will further implement the opening requirements of the automobile, shipbuilding, aircraft and other industries on the basis of the basic opening of the manufacturing industry, and relax the restrictions on foreign-invested shares, especially the restrictions on foreign-invested shares in the automobile industry. In 2018, the foreign-funded ratio of special-purpose vehicles and new energy vehicles will be lifted. In 2020, the restrictions on foreign-funded shares of commercial vehicles will be lifted. In 2022, the restrictions on foreign-invested shares of passenger vehicles will be lifted, and no more than two joint ventures will be established in China. limits.

At the same time, the Ministry of Industry and Information Technology has actively cooperated with the competent departments of national taxation to study and reduce the import tariffs on automobiles. The door to China's opening will not be closed, and it will only widen. In the next step, the Ministry of Industry and Information Technology will thoroughly implement the spirit of the internship of General Secretary Jin Ping at the Boao Forum for Asia, adhere to the concept of open cooperation, adhere to the orientation of marketization, integrate more deeply and broadly into the global supply system, and promote economic globalization towards more openness. Inclusive, inclusive, inclusive, balanced, and win-win development.

Hot spot two industrial economic situation In the first quarter, the industrial economic operation showed an overall stable, stable and good, good and new development

Reporter: Please briefly describe the performance of the industrial economy in improving the quality of development in the first quarter, and how to look at the next trend of industrial operation this year.
Huang Libin: In the first quarter, the industrial economic operation showed an overall stable, stable, and good-looking operation. The stable foundation was firm, the pace of progress was steady, the old and new kinetic energy were transferred in an orderly manner, and the quality and efficiency structure was steadily improved. At the same time, it is also good to worry about it. The unstable and uncertain factors in the economic operation have increased. It is still necessary to make arduous efforts to maintain a stable and stable situation.

The stable aspect is mainly reflected in the overall stability of the industrial production situation. In the first quarter, the added value of industrial enterprises above designated size increased by 6.8% year-on-year, which was the same as that of the same period of last year, which was 0.8 percentage points faster than the expected target set at the beginning of the year. In the first two months, the profit growth rate was 16.1%, and the profit rate of the main business income increased by 0.33 percentage points year-on-year, achieving growth and efficiency synchronization.

The main aspect is the acceleration of the pace of optimization and upgrading of industrial structure. Adhere to the use of market-oriented and legal-based means to resolve excess capacity. This year, the task of reducing steel production capacity of 30 million tons will be decomposed and implemented. The relocation of hazardous chemicals production enterprises will be accelerated, and the overcapacity of cement, flat glass and electrolytic aluminum industries will be steadily stabilized. Advance. The effect of de-capacity continued to be consolidated. In the first quarter, the comprehensive utilization rate of the steel industry recovered to a reasonable range of around 80%.

The new aspect is mainly reflected in the new kinetic energy to accelerate the growth. In the first quarter, the growth rate of the strategic emerging industries in the industrial sector increased by 9.6% year-on-year, faster than the overall industrial growth rate of 2.8 percentage points, in line with the direction of industrial transformation and upgrading, such as the rapid growth of production of smart, green and high-end products, new energy The output growth rate of automobiles, integrated circuits and industrial robots was 139.4%, 15.2% and 29.6% respectively, and the investment in high-tech manufacturing increased by 7.9%. The investment growth rate of medium and high-end manufacturing industries such as urban rail transit, industrial robots and communication equipment More than 70%.

At the same time, the expectations for development continue to improve. The Manufacturing Purchasing Managers Index (PMI) has been above the line for 20 consecutive months. In particular, the PMI of large and medium-sized enterprises is in the expansion range. The PMI for small businesses in March rose by 5.3 percentage points from February.

In general, in the context of the continued recovery of the world economy and the stable domestic economy, the industrial economy has achieved a good start in the simultaneous improvement of the quality and efficiency structure. But at the same time, we should see that the international economic and political situation is undergoing profound and complicated changes. The endogenous dynamics of economic growth vary from country to country. The development of international trade is still unbalanced. Geopolitical risks are rising one after another, all of which increase the instability and uncertainty of the current economic operation. Sex. From the domestic point of view, the industrial transformation and upgrading still faces many difficulties and needs to be broken. The production and operation of enterprises are also constrained by many factors. The long-standing problems of insufficient development imbalance are intertwined with the external environmental impact. The difficulty of the sustainable and healthy development of China's industrial economy.

For the difficulties and problems in economic operation, we adhere to the bottom line thinking, calm observation, timely judgment, calm response, strive for initiative, and strive to maintain a stable and good momentum.

Hotspots Three integrated circuit industry development adheres to the road of innovation and open cooperation, accelerates the breakthrough of core technologies, and strengthens international industrial cooperation.

Reporter: Will China's plan to develop semiconductors be affected by the recent US sanctions against ZTE? On this basis, will China increase its capital investment in the integrated circuit industry, especially in the second phase of the IC Development Fund?
Chen Yin: Recently, the Ministry of Commerce and the Ministry of Foreign Affairs of China have responded to the ZTE incident and showed China’s position.

The integrated circuit industry is a technology-intensive, talent-intensive and capital-intensive industry. In recent years, driven by market demand, China's integrated circuit industry has developed rapidly, its overall strength has been significantly enhanced, and its industrial scale has grown rapidly. However, there are still gaps in chip design, manufacturing capabilities and talent teams, and further development is needed. China's electronic information industry has a broad market. We will adhere to the path of innovative development and open cooperation, accelerate the promotion of core technological breakthroughs, and strengthen international industrial cooperation. We are confident that we can work together with the rest of the world to improve the development of humanity.

As for the IC Development Fund, the second phase of fundraising is now underway. We also welcome companies from all parties to participate in the fundraising.