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Musing-Weekly Newsletter

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China to Emphasize Semiconductors in Next 5-Year Plan
August 02, 2020
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​China's upcoming 14th five-year plan (2021-2025) will continue to highlight technology and capacity upgrades as the core of its semiconductor self-sufficiency strategy, with foundry capacity projected to expand 40% from the preceding plan and fabrication process expected to advance to 7nm. China's IC manufacturing industry is expected to see combined revenues double to CNY240 billion (US$34.28 billion) in 2020 from 2016, and may also move 12nm to production by the end of the year after having volume produced 14nm process. China's IC hasn’t yet met its goal of 40% independence set in the 13th five-year plan, and still lags behind international peers by three generations. This, coupled with the US-China trade war, will add uncertainties to the future development of China's IC manufacturing industry. The recent trade restrictions employed by the US is adding fuel to China’s new goals, especially as Huawei is now limited in its ability to provide new IC technology. 

 

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