Bolstered by China's large population, solid mobile network infrastructures, and aggressive deployments in IoT and AI applications, the localization of its semiconductor industry is advancing fast, but China wafer foundry houses still technologically lag far behind first-tier players although they will surely grow into strong competitors in the long run, according to MC Chiu, chairman of Taiwan-based Gudeng Precision Industrial, a supplier of photomask and wafer handling solutions and equipment

Chiu told Digitimes on the sidelines of SEMICON China 2018 in Shanghai that the ever-growing demand for diverse semiconductor chips and components needed to support data computing, storage and transmission in the eras of AI, big data, cloud computing and 5G will drastically catalyze the development of China's semiconductor industry. Accordingly, even if China's 8-inch and 12-inch wafer fabs adopt more mature, lower-end process nodes, they can still easily maintain profitable operations.

According to his observations, Chiu said, China wafer fabs still have a long way to go before they can catch the advanced technological essences of first-tier counterparts, as they are just trying to seek technological breakthroughs for 28nm process, not to mention the development of 14nm-10nm-7nm nodes.

Chiu continued that the world's top wafer fabs rely on not only advanced technologies but also sound organizations and corporate cultures to sustain continued progresses. At the moment, China wafer fabs comprise talent from all sides, including homegrown engineers, Chinese professionals back from overseas, and others recurited from Taiwan and other sources, and it will take a long time for them to be intergated into a solid team, Chiu noted.

The competitive advantages now enjoyed by top players including Intel, Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) will remain in the short term, and they will forge higher IP protection and technology thresholds that are harder for second- and third-tier players to surmount, according to Chiu.

Under strong government policy support, Chiu indicated, China's semiconductor industry will certainly continue to see vigorous development in the coming two years, with more than 20 new wafer fabs expected to start volume production in 2018-2019.

To cash in on the growing demand for wafer processing equipment, Gudeng has attended SEMICON China for two consecutive years to explore more new customers and enhance connections with existing ones. The company is also stepping up seeking certifications for its 300mm FOUP (front opening unified pod) products by wafer clients in China, according to Chiu.

By: DocMemory
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