The Chinese government plans to set up a national research and development center for integrated circuit (IC) products with the goal of holding 15 percent of the global market, says a leading scientist.
Wang Yangyuan, a member of the Chinese Academy of Sciences (CAS) and director of the Microelectronics Institute of Beijing University, told the annual national conference of the academy that the center would become a driving force for the Chinese IC industry.
The center would have a 4,000 to 5,000 square-meter laboratory.
"To reduce repetitive research, increase the technological output of research and strengthen the protection of intellectual property, it is necessary to establish an alliance of companies based around the national IC research and development center," Wang said.
He suggested the members-only alliance with investment from central and local governments, domestic and foreign companies, share the risks and benefits of research and development.
A report on suggestions to build a strong national microelectronics industry by the academic divisions of the CAS said China was expected to have 20 to 30 IC design houses with design products valued at 100 million U.S. dollars by 2010, including two or three firms with sales revenue of one billion U.S. dollars. The product value of the design industry was expected to reach 6.25 billion U.S. dollars.
The total revenue of the IC industry in China reached 380.3 billion yuan (47.5 billion U.S. dollars) last year, and was expected to reach 700 billion yuan (87.5 billion U.S. dollars) by 2010. Imports of IC products totaled 78.8 billion U.S. dollars, becoming the largest source of China's trade deficit.
"China is still an IC products consumption country," Wang said.
A CAS report said China would become a major producer, with sales revenue exceeding 270 billion yuan (33.8 billion U.S. dollars), by 2010,accounting for 35 percent of the domestic market and 10 percent the global market.
By 2020, China would be a leading manufacturer with sales revenue expected to account for 15 percent of the world market.
China's own products would meet 95 percent of domestic demand.
"It takes about ten years for IC products to go from research to production peak," Wang said. "China should start a strategic reponse to the market and technological development ten years in advance."