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How Chinese Semiconductor Industry loosing its importance

The semiconductor market in China used to grow at a staggering speed in last decade. off late there are issues thats are croping up for the industry to operate at scale and compete with multi national corporates at intellectual property level.In 2014, china has launched programme called "Big Fund" whose aim is to fund local semi conductor companies to build local talent pool and ecosystem to make china self sufficient in produceing integrated circuits by importing less chips from outside countries.

The major beneficieries of Big Fund are Semiconductor Manufactuting internation corp,Zte Micro Electronics,Tsinghua Unigroup,yangtze memory technologies etc..are unable to produce enough results and supporting eco system never materialzed. Though companies like Lenovo, Hisilicon, Spreadtrum Communications has considerable success in local chip design though they majorly operate via partnerships & acquasitions.

The chinese semiconductor industry realizing that earlier bureaucrat-led investment initiatives failed to bring the desired results, is now aiming to take a market-based investment approach. Where they trying to design and produce chips targeting specific marketing segments like automotive,telecom, wearables devices etc... and build national champion semiconductor and fabless companies.

With lack of expertise on specific segments,increased competition from global manufactures like samsung,TSMC etc.. and increasing USA-China spat like export ban against ZTE, the success story of Chinese Semiconductor Industry remain in catch 22 situation for now, need to be seen how CSI able to handle this situation and how it is learning from earlier failures.