How-Chinese-Companies-become-leader-in-Semiconduct

INTERNATIONALBUSINESSSTRATEGIES,INC.632IndustrialWay|LosGatosCA95030|USA|4083959585|4083955389(fax)|[e-mail]COMELEADERSINSEMICONDUCTORSMARCH182015IBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE2INTERNATIONALBUSINESSSTRATEGIESBACKGROUNDHasbeeninbusinessforover25yearsPreviousexperienceinmanaging1.5K+engineersatRockwellInternational,whichincludedavionics,communications,andsemiconductors.StrongemphasisoncommunicationsInterfacewithmostgloballeadersinelectronicsindustry,withcustomersinU.S.,Europe,SouthKorea,Japan,Taiwan,China,India,etcInterfaceandsupportformajorglobalcorporationssuchasIntel,Qualcomm,Broadcom,Microsoft,Nokia,Samsung,Sony,Toshiba,Apple,Cisco,Huawei,IBM,Fujitsu,NEC,Hitachi,Renesas,TSMC,STMicroelectronics,TI,ARM,Cadence,Synopsys,MentorGraphics,andothersParticipatedwithFrenchGovernmentontheiradvancedtechnologyinitiativesInterfaceandsupportforfinancialinstitutionssuchasGoldmanSachs,Carlyle,Blackstone,CitiGroup,WarburgPincus,Walden,KKR,MorganStanley,CreditSuisse,BNPParibas,BainCapital,BankofAmerica,TPG,andothersInvolvedwithadvancedtechnologyconceptsaswellasprice-sensitiveplatformsforsmartphoneandotherhighvolumeplatforms.AlsoinvolvedwithhighperformanceinfrastructurecompaniesonglobalbasisStrongexpertiseinChina.LatestbookiscalledChina’sGlobalization(HowChinaBecomesNo.1).PublishedbusinessbookentitledChinamerica(McGrawHill)Forbesblogcontributor,ChinaDailyarticles,GlobalTimeseditorials,etcInvolvedinnumberofduediligenceprojectsonnumberofIPOsSupportforstrategicinitiativesfornumberofglobaltechnologyleadersIBSHASHIGHMARKETSHAREONTECHNOLOGYANDSTRATEGYBUSINESSIBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE3GLOBALELECTRONICSINDUSTRYPRODUCTIONCHINAISSTRENGTHENINGRAPIDLY$1.2T$1.3T$1.4T$1.4T$1.5T$1.6T$1.6T$1.7T$1.8T$1.9T$2.1T56.9%58.5%60.1%61.6%62.9%64.5%65.8%67.1%68.3%69.7%70.6%$0.0B$0.6B$1.2B$1.8B$2.4B20102011201220132014201520162017201820192020GlobalElectronicsIndustryProductionChinaOtherIBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE4SEMICONDUCTORMARKETBYPRODUCT$0B$150B$300B$450B20102011201220132014201520162017201820192020SemiconducotrMarketMCUDSPStandardCellASICFPGASpecial-PurposeLogicGeneral-PurposeLogicDisplayDriverAnalogMOSMemoryMPUOtherSemiconductorIBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE5TOP-LEVELISSUESINSEMICONDUCTORMarketgrowthwillbepositivethrough2020butwilllikelyhavesomevolatilityMPUmarketisdominatedbyIntelWindows10canstrengthencompetitivepositionofARM64-bitarchitectureMCUvendorbaseisfragmentedAutomotivehasmanygrowthareasNXP-FreescalewillbelargestvendorModemmarketshareleaderisQualcommIncreasedcompetitivepressurefromMediaTekAnaloghasmanyparticipantsTIisgloballeaderDRAMmarketshareleaderisSamsungOthersareSKHynixandMicronTechnologyNANDFlashmarketshareleaderisSamsungOthersareToshiba,SanDisk,MicronTechnology,andSKHynixMOSTMARKETSEGMENTSAREDOMINATEDBYFOREIGNCOMPANIESISSUEISHOWTOCHANGETHISINCHINAMARKETIBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE6SUPPLYSEGMENTATIONINCHINA’SSEMICONDUCTORMARKETFOREIGNSUPPLYDOMINATESCHINAMARKET4.5%6.1%7.2%8.1%8.6%9.4%10.2%11.1%12.1%13.2%14.1%$128B$132B$136B$147B$166B$181B$198B$216B$233B$254B$278B$0B$100B$200B$300B20102011201220132014201520162017201820192020ChineseSemiconductorConsumptionTOTALSEMICONDUCTORCONSUMPTIONINCHINASupplyfromChineseSemiconductorCompaniesSupplyfromForeignSemiconductorCompanies2020GoalofChineseGovernmentforSupplyfromChineseSemiconductorCompaniesIBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.$20B$26B$32B$41B$52B$63B$73B$84B$94B$107B$124B$108B$106B$104B$107B$114B$119B$125B$132B$139B$147B$154B$128B$132B$136B$147B$166B$181B$198B$216B$233B$254B$278B$0B$100B$200B$300B20102011201220132014201520162017201820192020SemiconductorConsumptioninChinaConsumptionbyChineseCompaniesConsumptionbyForeignCompaniesSEMICONDUCTORCONSUMPTIONPATTERNINCHINACHINESEEQUIPMENTCOMPANIESAREINCREASINGCONSUMPTIONOFSEMICONDUCTORSMS-SEMIPRS3.1815SLIDE7IBS©2015INTERNATIONALBUSINESSSTRATEGIES,INC.ALLRIGHTSRESERVED.MS-SEMIPRS3.1815SLIDE8STRUCTUREOFCHINA’SELECTRONICSINDUSTRYMARKETIn2010,90.2%ofsemiconductorsconsumedinChinawasforsupportofforeignelectronicsequipmentcompaniesIn2020,69.8%willbeforsupportofChineseelectronicsequipmentcompaniesHistoricaldriverwasequipmentdesignedbyforeigncompaniessuchasApple,Hewlett-Packard,CiscoSystems,Sony,andothersForeigncompaniesweretechnologyleadersControlofproductfeaturesandarchitecturesbyforeigncompaniesNewsituationiswhereChineseelectronicsequipmentcompaniessuchasHuaweiTechnologies,LenovoGroup,Xiaomi,andothersarecompetitiveinglobalmarketsSemiconductorscontinuetobeprimarilysuppliedbyforeigncompaniesbecauseoftheirdesignexpertiseandIPExceptionsareHiSiliconTechnologies,SpreadtrumCommunications,RDAMicroelectronics,AllwinnerTechnology,FuzhouRockchipElectronics,andMontageTechnologyNewChinaiswherefullsupplychainfo