IC chip flocking Shenzhen
As the pandemic ends and China's economy gradually recovers, spurred by the "internal circulation" strategy, exchanges and visits between different regions and cities in China are becoming increasingly frequent. According to a report from the WeChat account "Smart Trend," starting from March 2nd, the Shanghai-Shenzhen route has become the busiest air route, replacing the Beijing-Shanghai route. The two most vibrant city clusters in China, the Yangtze River Delta and the Greater Bay Area, are also trending towards "merging" in the air.
Behind the busy air routes, it's worth mentioning the trend of "Yangtze River Delta IC manufacturers moving south to the Greater Bay Area." According to 21st Century Business Herald, during interviews, many passengers on the "southbound" flights are from the IC industry.
"Yangtze River Delta produces, Greater Bay Area seeks markets" has become a rule in the IC industry this year.
The Greater Bay Area has become a battleground for the IC industry.
There is a saying in the integrated circuit industry: "60% of chips are sold to China globally, and 60% of chips in China are consumed in the Pearl River Delta/Greater Bay Area."
The logic behind this is not difficult to understand. If you ask which province in China has the strongest manufacturing industry, Guangdong province is undoubtedly the answer.
According to the latest "Top 10 Industrial Cities in China," Guangdong, as the largest economy and industrial province in China, has four cities - Shenzhen, Guangzhou, Foshan, and Dongguan - in the top 10. This shows the province's strong manufacturing foundation and capabilities.
Among them, Shenzhen's industrial added value is expected to reach 1.13 trillion yuan in 2022, surpassing Shanghai's 1.08 trillion yuan for the first time, breaking Shanghai's long-standing lead and becoming the "top industrial city" in China.
As a manufacturing powerhouse, Guangdong's manufacturing companies have a high external dependence on their supply chains. For example, in the electronic information industry, over 90% of chips, over 85% of components for smartphones, and over 95% of components for automotive electronics rely on imports.
Indeed, in recent years, the risks of "chain breaking" and "chain blocking" have increased due to geopolitical factors, which has led to a stronger demand for independent substitution among manufacturing companies.
Indeed, the increasing demand for domestic substitution has brought about a new market landscape, where there is a significant market gap in the Greater Bay Area waiting to be filled by emerging domestic IC manufacturers. In recent times, domestic IC manufacturers have been frequently moving southward to capture this market opportunity.
Indeed, in China, the three major application markets for the integrated circuit industry are network communication, computers, and consumer electronics, with a market share of up to 80%. The Pearl River Delta/Greater Bay Area, which manufactures products related to these three areas, has naturally become a must-win area in the process of domestication of IC manufacturers.
It can be seen that the Greater Bay Area, centered around Guangzhou, Shenzhen, Foshan, Dongguan, and Zhuhai, has collectively launched an effort to revitalize the semiconductor industry, and has sounded the horn.
The Greater Bay Area, which was once absent from the industry, is now fully committed to the chip industry and is working hard to create a complete semiconductor and integrated circuit industry chain covering design, manufacturing, and testing.
From the momentum of the Greater Bay Area's vigorous pursuit, it seems that the rise of the development of the integrated circuit industry as the third pole should not be too far away.
