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Electronic information

The plight of Chinas chip manufacturing

In Electronic Infomation Category: R | on January   17, 2011

About SMIC Semiconductor Manufacturing International Corporation (SMIC, referred to as: SMIC) Shanghai headquarters of the reception area, is hard not to feel depressed.

Peeling paint on the ceiling, and LM75CIM5 datasheet and the empty hall, the dim light, giving a sense of failure - and LM75CIM5 price and the companys balance sheet, same story.

Insurmountable difficulties

SMIC is Chinas largest chip maker, is not the only one encountered difficulties of the enterprise. Chinas domestic semiconductor industry was set up in the past 10 years, Chinas chip makers are still very difficult to compete with established multinational companies, and LM75CIM5 suppliers and even harder to achieve profitability.

Today, the global economic crisis aggravated their suffering. Recently, SMIC announced that its 2008 fourth quarter net loss doubled from a year ago to $ 124,500,000, compared with sales down 31% over the same period in 2007. SMIC CEO Richard Chang (RichardChang) said it expects the current quarter sales will fall by 50%.

Smaller local Chinese chip makers, including Shanghai Hua Hong Group (ShanghaiHuahong), Grace Semiconductor Manufacturing Corporation (GraceSemiconductor) and Wuxi China Resources Semico Co., Ltd. (WuxiChinaResources), are experiencing the same difficulties .

"They are in trouble, hit by reduced demand," Macquarie Securities (MacquarieSecurities) in Hong Kong, the semiconductor industry analyst Liu Huaren (WarrenLau) said, "Their cash flow is gradually depleted, and therefore not need to be delisted radical restructuring, is the need to merge or be acquired by a larger scale. "

About SMIC Semiconductor Manufacturing International Corporation (SMIC, referred to as: SMIC) Shanghai headquarters of the reception area, is hard not to feel depressed.

Peeling paint on the ceiling, and the empty hall, the dim light, giving a sense of failure - and the companys balance sheet, same story.

Insurmountable difficulties

SMIC is Chinas largest chip maker, is not the only one encountered difficulties of the enterprise. Chinas domestic semiconductor industry was set up in the past 10 years, Chinas chip makers are still very difficult to compete with established multinational companies, and even harder to achieve profitability.

Today, the global economic crisis aggravated their suffering. Recently, SMIC announced that its 2008 fourth quarter net loss doubled from a year ago to $ 124,500,000, compared with sales down 31% over the same period in 2007. SMIC CEO Richard Chang (RichardChang) said it expects the current quarter sales will fall by 50%.

Smaller local Chinese chip makers, including Shanghai Hua Hong Group (ShanghaiHuahong), Grace Semiconductor Manufacturing Corporation (GraceSemiconductor) and Wuxi China Resources Semico Co., Ltd. (WuxiChinaResources), are experiencing the same difficulties .

"They are in trouble, hit by reduced demand," Macquarie Securities (MacquarieSecurities) in Hong Kong, the semiconductor industry analyst Liu Huaren (WarrenLau) said, "Their cash flow is gradually depleted, and therefore not need to be delisted radical restructuring, is the need to merge or be acquired by a larger scale. "

Integration

Chinas chip design business - but will create their own semiconductor research and development to other companies outsourcing business - are signs monitor the market and ready for integration. The main driving force behind the private sector of their shareholders.

However, chip manufacturers, the main driver of development of the industry from competition between various regions of China.

Local governments eager to attract able to jack up prices and create manufacturing jobs and improve the reputation of the large-scale projects the government, so willing to build processing plants in the local chip manufacturers to provide a rich reward.

SMIC trying to profit from this competition. Company and Chengdu, Wuhan and Shenzhen have signed the agreement. Under the agreement, the local government to pay part or all of the processing plant construction costs, SMIC is responsible for plant operation and management.

Today, the local government is trying to keep these factories and these factories represent employment opportunities and prestige.

Therefore, Chinas domestic IC manufacturing industry has gone through several rounds of government assistance.

Tagged as: LM75CIM5 datasheet IC LM75CIM5 suppliers LM75CIM5 Price

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