Guangdong gives teeth to high tech

Li Haiming, vice-president of CanSemi, said they'll focus on developing and producing analog chips, which account for about 70 percent of all integrated circuit devices in mobile phones, including brightness, sound and power management.

"Another goal is to connect the upstream, midstream and downstream integrated circuit firms and build up a comprehensive industrial chain," Li said.

So far, the company has attracted more than 90 enterprises to Guangzhou's Huangpu district, where it is located. The companies are engaged in chip design, packaging and testing, as well as equipment manufacturing and raw material supply. About 15 of them have reported annual revenue of more than 100 million yuan each.

Li said the aim is to forge an integrated circuit ecosystem that's on par with Shanghai's Zhangjiang High-Tech Park, which houses many suppliers of Guangdong-based electronic terminal producers.

If Guangdong were to have its own integrated circuit production base, Li said he believes it'll also fuel the rapid growth of terminal products as the entire production time and the testing process would be drastically shortened.

Such a manufacturing base can also provide a testing ground for research institutions to transfer their scientific study results and propel the development of integrated circuit technology research.

Li said while the nation's chip industry faces all-round challenges, it creates tremendous opportunities. According to World Semiconductor Trade Statistics — a nonprofit-making organization of chipmakers — China remained the largest individual market for semiconductors, with sales totaling $151.7 billion in 2020, a year-on-year increase of 5 percent.

According to the China Semiconductor Association, the total revenue of the nation's analogic integrated circuit companies stood at 16.3 billion yuan at the end of last year, and the self-sufficiency rate was only about 12 percent.

Guangdong could provide a unique path to giving the industry a shot in the arm through government-led industry funds and by cultivating chipmaking talent, said Li.