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China is pushing for localization of semiconductors or will grasp price leadership in the future

According to Japanese media, China formally promotes equipment investment to accelerate the localization of semiconductors. By the end of 2018, it will begin to provide three-dimensional NAND flash memory chips.

According to "Nihon Keizai Shimbun" reported on April 12, a person in charge of semiconductor company Advantest test company was not surprised to say: "Two or three years ago still can not believe that R & D can proceed smoothly, but now it is very different. "He is talking about Changjiang Storage Technology, a subsidiary of Chinese state-owned semiconductor company Ziguang Group. The company is advancing 3-D NAND flash memory chip mass production projects in Wuhan. It is said that this batch production project will achieve rapid development by the end of 2018 to 2019.

Reported that three-dimensional NAND flash memory chips can be used as smart phones and data center memory devices. Its unit memory capacity is higher than traditional flat products.

According to the report, the Chinese government proposed "Made in China 2025" in 2015 to encourage the development of the semiconductor industry. China has a high share in manufacturing electronic devices, and semiconductors are the largest imported varieties. In order to improve trade balances, semiconductor self-sufficiency must be increased.

The International Semiconductor Equipment and Materials Group predicts that China's semiconductor manufacturing equipment market will reach US$ 11.3 billion by 2018, up 40% from the previous year.

According to reports, due to the decline in demand for smart phones, NAND is currently weak. However, the beginning of the year has always been a period of declining demand. Many people believe that in order to welcome the year-end promotions, companies will begin to purchase smart phone parts in the summer of 2018, and the NAND shortage may occur again.

The report said what will happen in the future? "The supply and demand of NAND after 2020 will depend on Changjiang Storage Technology Co.," said Nan Chuanming, chief analyst at IHS Markets. If all of the company's plans are taken into account, there will be an oversupply situation in 2021. From 2019 to 2021, NAND prices with a capacity of 256G are expected to decline at an average annual rate of 20% to 30%.

According to reports, many people believe that Changjiang Storage Technologies currently only offers low-end products. Ensuring the supply of technical talents has not been resolved.

However, according to reports, in the small-to-medium-sized LCD screen market, Chinese companies have continuously increased their market share by providing low-end products to smart phone manufacturers in China. The price gap between high-end fine products and Chinese products that have dominated Japanese and Korean manufacturers has narrowed to around 10%.

According to the report, China has the time or future to control prices in terms of supply and demand.