Major Fund Project Exceeds 130 Billion Yuan, Driving Integrated Circuit Development

A significant milestone in China's industrial development has been reached with the announcement of major fund projects totaling over 130 billion yuan. These include the Ningbo AIC Equity Investment Fund Cluster Cooperation Project, the "361" Industrial Fund Cluster Cooperation Project, and the "1+N" State-Owned Capital Fund Cluster Cooperation Project. Among these, the Ningbo "361" Industrial Fund Cluster has drawn particular attention due to its strategic alignment with emerging industries, including integrated circuits (IC).

Ningbo's "361" Industrial Fund Cluster

The "361" Industrial Fund Cluster is a collaborative initiative led by the Ningbo Municipal Finance Bureau and various investment institutions. It focuses on developing:

• Three trillion-yuan industrial clusters: Digital industries, green petrochemicals, and high-end equipment.
• Six billion-yuan industrial clusters: New functional materials, new energy, critical components, smart appliances, fashion textiles, and modern healthcare.
• Emerging and future industries: Cutting-edge materials, advanced intelligence, metaverse technologies, future energy, aerospace, marine technology, quantum science, original drug innovation, and next-gen medical diagnostics.

The digital industry cluster, a core segment of this initiative, encompasses integrated circuits, optoelectronics, sensors, electronic materials, and software. As a central pillar, the IC sector in Ningbo is experiencing robust growth fueled by policy support and strong market demand.

Integrated Circuit Development in Ningbo

Ningbo has rapidly become a prominent player in China's IC landscape. According to the Ningbo Municipal Bureau of Economy and Information Technology, the city's IC and related industries achieved a total industrial output of 54.5 billion yuan in 2023, marking a 10.3% year-on-year growth. This growth rate surpasses the overall "361" cluster's industrial output growth by 8 percentage points. The specialty process IC value chain, in particular, saw impressive progress, with an added value of 12.3 billion yuan, representing a 15% increase.

Currently, Ningbo boasts a comprehensive IC ecosystem, spanning design, materials, manufacturing, assembly, testing, equipment, and applications. Key players include:

• Design firms: Ningbo Dashin Semiconductor
• Manufacturers: SMIC Integrated Circuit (Ningbo)
• Material providers: Jiangfeng Electronics, Anji Microelectronics

Key Semiconductor Projects in Ningbo

Ningbo's semiconductor sector is bolstered by high-profile projects. Recent developments include:

1. Ningbo Zhongxin Semiconductor IDM Project: Recently completed and operational, this facility aims to establish a high-impact wafer fabrication plant.
2. Wide Bandgap Semiconductor Materials and Devices Institute: Welcomed its first batch of core equipment in early November, signaling significant progress.

Looking ahead, Ningbo plans to enhance its IC industrial chain by focusing on:

• Materials and equipment
• IC design
• Chip manufacturing
• Packaging and testing
• Application expansion

By leveraging this comprehensive approach, the city is positioning itself as a national hub for specialty process IC innovation.

Conclusion

The launch of Ningbo's major fund projects represents a significant push toward fostering cutting-edge technologies and enhancing industrial competitiveness. With its integrated approach and strong government backing, Ningbo's IC industry is on a trajectory to become a leading force in China's semiconductor landscape.