Shaanxi Accelerates Development of Semiconductor and Integrated Circuit Industry

On December 12, the Shaanxi Provincial Government held a press conference to outline its ambitious plans for advancing the semiconductor and integrated circuit (IC) industry. Focused on five key directions, these initiatives aim to establish Shaanxi as a national leader in semiconductor innovation and production.

Five Key Development Directions

1. Enhancing Design Capabilities: Shaanxi aims to cultivate industry-leading design companies, strengthening its IC design sector.

2. Building 8-inch Specialty Process Lines: Plans are underway for projects like Longteng Semiconductor's specialty process production line to address gaps in wafer manufacturing.

3. Advancing Packaging and Testing: Emphasis will be placed on high-density and 3D integrated packaging technologies for the post-Moore era.

4. Developing Materials and Equipment: Leveraging its scientific resources, Shaanxi seeks to establish full 12-inch silicon wafer production lines and advanced single-crystal furnace manufacturing.

5. Creating a Comprehensive Ecosystem: Efforts include fostering collaboration between government, industry, and academia to tackle weak links in the industrial chain.

The Shaanxi Department of Industry and Information Technology has launched the “Strong Chip Project” to build Shaanxi into a leading IC design hub and a national semiconductor production base.

Shaanxi's Competitive Advantages

Shaanxi’s semiconductor ambitions are backed by substantial strengths:

1. Robust Industry Foundation: The region has been involved in semiconductors since the 1960s, boasting a comprehensive industrial chain covering chip design, wafer manufacturing, packaging, testing, and equipment systems.

2. Leading Enterprises: Major players like Samsung and Micron are complemented by local champions such as Eswin, Unigroup Guoxin, and others, which have become key drivers of growth.

3. Abundant Talent Resources: With 11 universities offering postgraduate programs in microelectronics and solid-state electronics, Shaanxi has 60,000 professionals working in the semiconductor sector and 100,000 students in related fields, ensuring a steady talent pipeline.

Recent Progress and Investments

Shaanxi has recently made significant strides in semiconductor manufacturing. For example, the 8-inch specialty process project by Chip Era Semiconductor began construction in November 2023 with an investment of ¥4.5 billion. The facility, expected to achieve a monthly production capacity of 50,000 wafers, will fill a critical gap in the region’s semiconductor capabilities. Plans for a 12-inch production line are also in development, aiming to establish a high-end IC cluster unique to Shaanxi.

On the manufacturing front, the province hosts notable players such as Samsung Semiconductor (China), Xidian Microelectronics, and Times Semiconductor. In packaging, companies like Lishan Microelectronics, Huatian Technology (Xi’an), and Vitesse Semiconductor (Xi’an) are leading advancements.

Third-Generation Semiconductor Innovation

Shaanxi is also focusing on third-generation semiconductors. In April, the province launched the "Billion-Level Third-Generation Semiconductor Innovation Cluster Plan," targeting breakthroughs in material growth, device design, and manufacturing. The initiative seeks to establish a collaborative ecosystem that integrates innovation, production, and services, propelling Shaanxi to the forefront of third-generation semiconductor development.

Challenges and Opportunities

Despite its progress, Shaanxi faces notable challenges:

1. Gaps in the Industrial Chain: Local production capabilities, particularly in wafer manufacturing, remain underdeveloped.

2. Low Conversion of Research Achievements: The transformation rate of research from institutions like Xidian University and 711 Research Institute into commercial applications needs improvement.

3. Attracting High-End Talent: While efforts like the Qinchuangyuan innovation platform aim to improve the business environment, retaining and attracting top-tier talent remains a challenge.

A Vision for the Future

By leveraging its strong industrial foundation, advanced research capabilities, and strategic investments, Shaanxi is poised to play a pivotal role in China's semiconductor and IC industries. The province’s focus on innovation and ecosystem building, coupled with targeted measures to address existing gaps, signals a bright future for its semiconductor ambitions.