Semicon is a sequence of exhibitions run by SEMI and centered on semiconductor manufacturing. It has the whole lot, from supplies to gear to fabrication. I say sequence of occasions as a result of nearly each area within the semiconductor ecosystem will get one – Semicon China, Semicon Europa, Semicon India, Semicon SEA, Semicon Japan, Semicon Korea, Semicon West (USA), and naturally Semicon Taiwan, all all year long.
The present this yr
Chen Nanxiang, the Chairman of each Yangtze Reminiscence Applied sciences Corp (YMTC) and the China Semiconductor Business Affiliation (CSIA) mentioned within the opening keynote, “China’s semiconductor market belongs to the world, whereas the world’s semiconductor market additionally belongs to Chinese language firms”. He and the China Electronics Chamber of Commerce’s Wang Ning additionally praised Nvidia’s progress, highlighting generative AI as a key development driver for the trade, and have been very bullish on the trade’s objectives to turn out to be a $1 trillion market by 2030. Working collectively globally is vital to reaching these objectives, they mentioned. This was a really constructive and inclusive message, one which representatives of SEMI shared (albeit by way of video as none appeared to be current in individual), however appeared at odds with the language coming from Beijing, which not too long ago banned Intel and AMD chips from authorities computer systems, and from Washington, which continues to limit semiconductor know-how exports to China.
I’ve been attending Semicon China and Semicon Taiwan for a number of years. Semicon Taiwan final September felt like the biggest present I’d ever been to, however Semicon China felt bigger once more, albeit concurrently much less worldwide. It has grown yearly I’ve attended and this time was no completely different. Over 35,000 guests, 1,000-plus exhibitors, and nonetheless quite a few international companies taking on a number of the largest cubicles. Japanese companies have been particularly current, with the likes of Sumitomo, Canon, Tokyo Electron, Disco, and plenty of extra having the biggest cubicles on the present. Korea, Taiwan, and Europe each had a big displaying, with Korea and Taiwan having their very own pavilions.
When talking with exhibitors although, not the whole lot was as rosy. Exhibitors on the Korean pavilion did admit the Chinese language market was robust for them proper now, however didn’t wish to go into particulars. Surprisingly, regardless of this, they claimed Semicon China was the one Semicon the place they deliberate on having a particular Korean pavilion this yr. Such a choice might be interpreted in a number of methods, both destructive or constructive. One other Chinese language exhibitor working for an outsourced semiconductor meeting and check (OSAT) vendor admitted that your complete trade was witnessing involution. Like different industries in China, too many gamers had entered, nobody had any clear differentiation, and first rate margins have been uncommon.
There was additionally a transparent lack of US firms, simply 22 in whole, and no family names resembling AMAT or LAM. This might not be stunning, however in comparison with different international international locations it did really feel unusual. Cadence’s CEO did seem in individual, nevertheless, and gave a really informative speech about how AI is driving Cadence’s product improvement and trade development.
Energy electronics and compound semiconductors have been one other key theme of the present, having a big space set out only for compound semiconductor firms and in addition a two-day convention. China now accounts for round 40% of the worldwide energy semiconductor market, pushed partially by explosive EV gross sales development over the previous few years. In 2023, BYD Semi overtook Infineon within the Chinese language market, and now 5 of the highest ten firms in China are home. BorgWarner and Hitachi are not within the high ten inside China.
Conclusions
The present state of affairs is considerably contradictory. On one hand, Semicon China and Beijing appear to be welcoming international semiconductor firms with open arms. On the opposite they’re pushing firms, particularly SOEs, to purchase made in China applied sciences and merchandise. They complain about being blocked from international know-how, however then proceed to dam themselves even additional. The convention remarks have been very constructive, however on the bottom, many cubicles have been nonetheless pushing the made in China message.
Regardless of all of this, China stays the biggest semiconductor market on the earth, and international companies, whether or not they prefer it or not, want to search out methods to deal with it. Chinese language companies themselves are dealing with intense competitors domestically so wish to increase into international markets the place they hope to search out higher margins. My impression although is that many international semiconductor firms have important technological benefits over their Chinese language opponents and being current in China helps them not solely control competitor progress but additionally take away some income from these companies that could possibly be spent on R&D to catch up from a technical perspective, or be spent on international market growth.
China might not be the simplest market, however the measurement and scope of Semicon China, regardless of the whole lot, reveals that there are methods to take care of it.
