With Dr. Sun Jiaxing mentioning the industrial chain, he hopes that the terminal will try its best to choose a design company and design company to choose Foundry as much as possible. Foundry chooses local materials and equipment as much as possible. In this respect, I feel that it is not just the government that gives the upper reaches to choose downstream people. In doing so, in fact, in terms of SMIC's experience, we are getting real benefits. In the face of the Japanese tsunami this year, many companies are very worried that Foundry may not be able to supply goods, because there are many things from the affected areas in Japan. Fortunately, since last year, SMIC has made considerable effort from the senior level to mandate the use of Chinese industrial materials including silicon wafers, etc. In this year's tsunami it was ensured that our supply was without any questionable. I am responding to Dr. Sun's appeal and is also a safer way to supply myself.
This year's development of China's integrated circuits is viewed by SMIC as the overseas market is declining. This year's design company has made great strides in SMIC's orders and has grown by more than 20%. Sales from Chinese design companies exceed $2 billion. Today's speech is divided into three parts. First, we look at which of China's integrated circuits do a good job in designing this year to see how much worse than the evaluation of experts. The second is that we spent money to set up a team and made a five-year plan. There are very in-depth interviews with the top 20 design companies in China, including their future product plans, including their forecasts for future sales, so we also see some conclusions. The third is the establishment of advanced technology, and the IP platform assists the Chinese core.
We can see several black horses in mainland China every year. In terms of 2.5G, both sales and shipments have performed well. RDA is a company that was just listed on the market last year. The company's Bluetooth and front-end modules/functions continue to grow significantly. Of course, they have also successfully entered volume production at 55 nm. Fudan Microelectronics was the first financial social security card to ship in Tianjin's dual interface. It can be applied entirely as a bank card. Quan Zhi Technology, following their high-definition decoding chip performance in the market last year, is very bright, this year they also introduced the A10 chip, the speed has exceeded 1G, performed well in the market. Shanghai's Mountain View is a card speaker. It ships in the market and has a variety of applications. Shanghai Kun Rui also received the tickets for the Guangzhou-Shenzhen Railway and Russian subway tickets. The anti-counterfeiting of Wuliangye is also done by them. They are also very large. Huada Electronics also has a large shipment this year.
Development Trends of China's IC Design Industry in the Next Five Years We spend a lot of time with mainland design companies studying their future requirements for technology, IC requirements, and their views on the future. In the five years of designing in the future, we will see a 15% growth in China. In addition to the trend of market growth is double-digit, most of the growth comes from the top 20 design companies, but is the 20 largest design company still the 20 largest five years later? There may be some questions. The integration of industries is such a trend. In the future we will see a trend of consolidation. Globally, the world’s top 20 chip design companies accounted for 70% of global sales in 2010. The top 20 companies in China accounted for 55% in 2010. In the course of our interviews, we expect that the merger trend will continue in the next five years. We have seen Spreadtrum’s acquisition of Mobile Peak this year. Everyone feels tired. First, Moore's Law moves forward quickly, and your technology continues to advance. Second, the homogeneity of domestic companies is too serious or too many of our design companies.
We can see that by 2010, the top 20 accounted for 55%, and the top 100 accounted for 90% of the entire semiconductor industry. By 2015, we expect the top 20 to account for 75%, and the top 100 account for 95%. This presents us with a big issue. If we look at SMIC, we also have similar figures. The top 20 design companies account for 75% of our sales in SMIC. Of course, we do not mean that we only support the top 20 companies. Other companies have to support them. The allocation of resources is a test for us. In addition to this, some small companies, if their methods are correct, have sufficient understanding of the market and may become large companies in less than five years.
Another aspect that we see is the demand for advanced technology. Big companies go very fast. 2009-2011 is the era of 65 and 55 nanometers. In 2010 and 2011, it entered the era of 40 nanometers. From 2012 to 2013, it was already 28 nanometers. So far, several companies have been working with us on the development of 28-nanometer chips.
Mainland design companies mentioned one advantage of locality when reflecting on the advantages of local Foundry. Languages, logistics, and customs all have some advantages. In addition, everyone can understand each other for a long time and can work together, so long-term cooperation. Of course, it is also mentioned that there are companies that need to provide Tunky machines with a one-stop service.
In the next five years, the semiconductor industry will continue to maintain double-digit growth. This is what I mentioned just now. Among them, the Foundry industry will continue to grow rapidly in China. Of course, this promotion comes from emerging markets, from the mobile Internet and digital television and so on.
SMIC Intensifies Third-Party IP Investment The biggest problem we encountered when we worked with design companies in China was that IP was the biggest bottleneck, so from last year to this year at 65 nm, 55 nm, and 40 Every nanometer point in the nanometer has invested more than tens of millions of dollars in IP. In the past two years, especially at the time of entering 65 and 40 nanometers, they have constantly received complaints from design companies. Now some IP suppliers are going to do a SoC. It is very expensive. Yesterday I was chatting with a design company and said to be a 40nm SoC one CPU plus one GPU, $6m-7m. This should be an actual number, and more than one design company has already voted in. These companies have always told SMIC that they want to cultivate a number of local suppliers together with SMIC. We are really doing this, and this is also quite difficult. It takes a year, two years, or three or five years to see a good result. This needs us to do it together.
Dr. Sun mentioned that SMIC has fallen behind at 45nm and 40nm. Indeed, we are lagging behind. However, there is good news here. In the fourth quarter of this year, we have already mass-produced at 40nm. The estimated production time from China's 40nm is in the first quarter of next year. I'm here to show off 40-nanometer major investment partners, including ARM, Silicon Creations, and of course native. 65nm will add more including Kilopass. 55nm We chose INNOSILICON as our partner.
In the next five years we will see, first, China's integrated circuit design industry will continue to grow at a high speed, at least in double digits. And most of the growth comes from the top 20 design companies. Second, China's integrated circuit design industry will intensify industrial integration in the next five years. This is a healthy and healthy development. Although China’s integrated circuits have grown rapidly, they have grown by 20-30% each year, but the overall scale is still not big enough. Third, the development of China's IC-free design industry relies on advanced technologies. Of course, this part of me is definitely not to say that all must do 45, 50, 40 or even 28 nanometers. Just now Director Huang of the Shandong government mentioned simulation, etc. This part has great profits, and there are many places that can be cultivated. This is what we have been looking at, and we have been working with the investment community in hopes of building one or two billion dollars in sales in the next few years in China. We haven’t yet seen analog design companies. However, the recent simulation company also has many companies in China, but it is still relatively small. We hope to create more simulation companies.
We do see that there are 3-5 companies with sales exceeding US$1 billion by 2015. At least we see that this year Spreadtrum’s disclosure to the public has reached US$700 million.
This year's development of China's integrated circuits is viewed by SMIC as the overseas market is declining. This year's design company has made great strides in SMIC's orders and has grown by more than 20%. Sales from Chinese design companies exceed $2 billion. Today's speech is divided into three parts. First, we look at which of China's integrated circuits do a good job in designing this year to see how much worse than the evaluation of experts. The second is that we spent money to set up a team and made a five-year plan. There are very in-depth interviews with the top 20 design companies in China, including their future product plans, including their forecasts for future sales, so we also see some conclusions. The third is the establishment of advanced technology, and the IP platform assists the Chinese core.
We can see several black horses in mainland China every year. In terms of 2.5G, both sales and shipments have performed well. RDA is a company that was just listed on the market last year. The company's Bluetooth and front-end modules/functions continue to grow significantly. Of course, they have also successfully entered volume production at 55 nm. Fudan Microelectronics was the first financial social security card to ship in Tianjin's dual interface. It can be applied entirely as a bank card. Quan Zhi Technology, following their high-definition decoding chip performance in the market last year, is very bright, this year they also introduced the A10 chip, the speed has exceeded 1G, performed well in the market. Shanghai's Mountain View is a card speaker. It ships in the market and has a variety of applications. Shanghai Kun Rui also received the tickets for the Guangzhou-Shenzhen Railway and Russian subway tickets. The anti-counterfeiting of Wuliangye is also done by them. They are also very large. Huada Electronics also has a large shipment this year.
Development Trends of China's IC Design Industry in the Next Five Years We spend a lot of time with mainland design companies studying their future requirements for technology, IC requirements, and their views on the future. In the five years of designing in the future, we will see a 15% growth in China. In addition to the trend of market growth is double-digit, most of the growth comes from the top 20 design companies, but is the 20 largest design company still the 20 largest five years later? There may be some questions. The integration of industries is such a trend. In the future we will see a trend of consolidation. Globally, the world’s top 20 chip design companies accounted for 70% of global sales in 2010. The top 20 companies in China accounted for 55% in 2010. In the course of our interviews, we expect that the merger trend will continue in the next five years. We have seen Spreadtrum’s acquisition of Mobile Peak this year. Everyone feels tired. First, Moore's Law moves forward quickly, and your technology continues to advance. Second, the homogeneity of domestic companies is too serious or too many of our design companies.
We can see that by 2010, the top 20 accounted for 55%, and the top 100 accounted for 90% of the entire semiconductor industry. By 2015, we expect the top 20 to account for 75%, and the top 100 account for 95%. This presents us with a big issue. If we look at SMIC, we also have similar figures. The top 20 design companies account for 75% of our sales in SMIC. Of course, we do not mean that we only support the top 20 companies. Other companies have to support them. The allocation of resources is a test for us. In addition to this, some small companies, if their methods are correct, have sufficient understanding of the market and may become large companies in less than five years.
Another aspect that we see is the demand for advanced technology. Big companies go very fast. 2009-2011 is the era of 65 and 55 nanometers. In 2010 and 2011, it entered the era of 40 nanometers. From 2012 to 2013, it was already 28 nanometers. So far, several companies have been working with us on the development of 28-nanometer chips.
Mainland design companies mentioned one advantage of locality when reflecting on the advantages of local Foundry. Languages, logistics, and customs all have some advantages. In addition, everyone can understand each other for a long time and can work together, so long-term cooperation. Of course, it is also mentioned that there are companies that need to provide Tunky machines with a one-stop service.
In the next five years, the semiconductor industry will continue to maintain double-digit growth. This is what I mentioned just now. Among them, the Foundry industry will continue to grow rapidly in China. Of course, this promotion comes from emerging markets, from the mobile Internet and digital television and so on.
SMIC Intensifies Third-Party IP Investment The biggest problem we encountered when we worked with design companies in China was that IP was the biggest bottleneck, so from last year to this year at 65 nm, 55 nm, and 40 Every nanometer point in the nanometer has invested more than tens of millions of dollars in IP. In the past two years, especially at the time of entering 65 and 40 nanometers, they have constantly received complaints from design companies. Now some IP suppliers are going to do a SoC. It is very expensive. Yesterday I was chatting with a design company and said to be a 40nm SoC one CPU plus one GPU, $6m-7m. This should be an actual number, and more than one design company has already voted in. These companies have always told SMIC that they want to cultivate a number of local suppliers together with SMIC. We are really doing this, and this is also quite difficult. It takes a year, two years, or three or five years to see a good result. This needs us to do it together.
Dr. Sun mentioned that SMIC has fallen behind at 45nm and 40nm. Indeed, we are lagging behind. However, there is good news here. In the fourth quarter of this year, we have already mass-produced at 40nm. The estimated production time from China's 40nm is in the first quarter of next year. I'm here to show off 40-nanometer major investment partners, including ARM, Silicon Creations, and of course native. 65nm will add more including Kilopass. 55nm We chose INNOSILICON as our partner.
In the next five years we will see, first, China's integrated circuit design industry will continue to grow at a high speed, at least in double digits. And most of the growth comes from the top 20 design companies. Second, China's integrated circuit design industry will intensify industrial integration in the next five years. This is a healthy and healthy development. Although China’s integrated circuits have grown rapidly, they have grown by 20-30% each year, but the overall scale is still not big enough. Third, the development of China's IC-free design industry relies on advanced technologies. Of course, this part of me is definitely not to say that all must do 45, 50, 40 or even 28 nanometers. Just now Director Huang of the Shandong government mentioned simulation, etc. This part has great profits, and there are many places that can be cultivated. This is what we have been looking at, and we have been working with the investment community in hopes of building one or two billion dollars in sales in the next few years in China. We haven’t yet seen analog design companies. However, the recent simulation company also has many companies in China, but it is still relatively small. We hope to create more simulation companies.
We do see that there are 3-5 companies with sales exceeding US$1 billion by 2015. At least we see that this year Spreadtrum’s disclosure to the public has reached US$700 million.
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