What kind of dilemma is the development of China's chip industry facing?
Recently, it was reported that China's monthly chip production capacity will reach 8.6 million pieces in 2024, ranking first in the world. But can we rejoice too early? We still need to maintain a sober judgment on the development prospects of China's chip industry.
First, China's chip industry has a long way to go from "following" to "running". As a late-developing country, China's chip industry started late and has been in a position of catching up for a long time. In terms of core technology and equipment, it relies on imports, the industrial system is incomplete, and there is still a gap between it and the world's advanced level. In recent years, the state has vigorously supported the development of the chip industry, and all aspects have made great progress. However, to realize the leap from "following" to "running", the road is long, and there is a long way to go.
Second, China's chip production capacity is expanding at an astonishing rate, and quality control still needs to be improved. According to reports, China's monthly chip production capacity will reach 7.6 million pieces in 2023, a year-on-year increase of 12%, higher than the growth rate of the entire industry. This is mainly due to the rapid expansion of the production capacity of the 28nm process of domestic chips. But we can't ignore the fact that the rapid expansion of production capacity will also bring huge pressure on quality control. It has been reported that the yield rate of mainland chip products is lower than the international advanced level. We still need to focus on product quality and reliability while improving our design and craftsmanship.
Third, there are still shortcomings in China's chip industry chain, and core components rely on imports. At present, China still relies on imports in key links such as chip manufacturing equipment, materials, and manufacturing processes. The dependence of any link may become a weakness in external suppression. Previously, in the Sino-US chip war, Chinese companies suffered greatly. Improving the independent and controllable chip industry chain is the only way to get rid of this dependence.
Fourth, the research and development of advanced process chips has a long way to go. At present, China's chip production capacity mainly comes from backward manufacturing processes, while the world's advanced technology is still dominated by foreign companies. In the field of 7nm or even more advanced technology, there is still a gap between Chinese companies and international giants. These advanced processes are extremely demanding on technology and capital, and require long-term accumulation, so it is difficult to catch up in the foreseeable future.
Fifth, core chip technology is still highly dependent on foreign countries. China has made significant progress in chips in the fields of communication base stations and high-performance computing, but in areas that are extremely critical to national and enterprise security, such as CPUs, GPUs, and basebands, China's kern chip technology still relies heavily on foreign imports. These cutting-edge technologies have a very high threshold and require systematic breakthroughs and long-term cultivation. There is still a long way to go to completely get rid of dependence on it.
Chinese chip companies must abandon illusions and focus on independent innovation. Only through continuous investment in scientific research and talent training, and continuous overcoming of technical difficulties, can we occupy a place in the global chip industry. There are no shortcuts on the road to independent innovation. Chinese chip companies need to closely combine the needs of the country and the industry, strengthen cooperation with universities and research institutes, and actively carry out scientific and technological innovation.
Only by being down-to-earth can we truly step to the center of the world stage. The development of China's chip industry should not only achieve technological breakthroughs, but also market development and brand building. Chip companies should expand their domestic market share, and at the same time actively expand the international market to create a competitive "China Chip" brand. Through global layout, we can continuously improve product quality and technical level in order to achieve lasting competitiveness in the international market.
The development of China's chip industry is a huge and complex system project, which requires the joint efforts and support of the whole society. The government, enterprises and academia should strengthen cooperation, break down departmental barriers, and form a joint force for scientific and technological innovation. At the same time, it is also necessary to vigorously cultivate and attract outstanding talents, establish a good innovation environment, and provide strong talent and ideological support for the development of the chip industry.
Therefore, although the development momentum of China's chip industry has been good recently, on the whole, there is still a long way to go before it is fully autonomous and leading. We can't be overjoyed by a few data changes, we need to keep a clear head. Core technology cannot be bought, and can only be relied on self-reliance. With the strong support of the state, Chinese chip companies must give up illusions, focus on independent innovation, and move forward in a down-to-earth manner in order to truly move towards the center of the world stage.