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Integrated Circuit Production Meets Only 10% of Demand
China's production of integrated circuits last year reached 4.1 billion chips last year, half of which was exported, and sales exceeded 10 billion renminbi. However, the remaining amount only satisfies less than 10% of China's demand for integrated circuits.
The Ministry of Information Industry Electronic Information Product Management Department Vice-Director Zheng Minzhen pointed out that China's integrated circuit sales volume only accounted for 1% of the global market. There is still a gap between China and the rest of the world in terms of the most advanced computer technology.
The development and production of integrated circuits is the most sophisticated high tech product in the world today. Its development and production capability is a sign of the scientific level of a country. China currently has seven microchip manufacturers, more than twenty integrated circuit design companies which have a sales volume of more than 10 billion renminbi and more than ten packaging plants. China can already develop and produce 0.25 micron microchips, which isn't far from the world's most advanced microchip technology. However, most of the microchips made in China are still 0.5 microns.
Zheng Minzhen feels that the several recently announced policies that encourage the development of the software and integrated circuit industry will spur the development of the domestic integrated circuit industry. He says that the current integrated circuit production lines are shifting into high gear and working overtime to meet the demand. This year, sales volume of four integrated circuit design companies will exceed 10 million yuan.
Shanghai, Beijing and Shenzhen are all currently setting up new integrated circuit production lines. It is estimated that in two or three years, there will be six to eight new production lines up and running, increasing sales by tens of billions of renminbi.
Zheng Minzhen said that Haier, as China's largest home appliance manufacturer, entering the integrated circuit design business is a good thing for China's integrated circuit industry. Integrated circuits account for more than 25% of modern electronic appliances.
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