Based on the location and talent advantages of Nanjing, a metropolis in the Yangtze River Delta, Nanjing Jiangbei New Area rapidly agglomerated 100 integrated circuit (IC) design enterprises last year.
As a leader in the global chip manufacturing industry, Taiwan Semiconductor Manufacturing Company Limited (TSMC) has shocked the industrial and economic circles due to its settlement in Nanjing, which multiple world-renowned media competed to report. TSMC will invest USD 3 billion in Nanjing Jiangbei New Area to build the world's most advanced 12-inch wafer fab, which is estimated to directly promote the investment of USD 30 billion in upstream and downstream industries of the IC industry. The project contract was signed in March 2016, the company was registered in May 2016, and construction began in July 2016. The TSMC wafer fab in Nanjing has advanced at a miraculous pace. Currently, 86% of the project has been constructed, and the preliminary phase of the infrastructure project is complete. Cleanroom equipment and air conditioners have been delivered to the project site. The infrastructure construction and equipment installation are estimated to finish on September 10 to completely usher in the installation of the production line equipment.
In the Industrial Technology Research and Innovation Park of Nanjing Jiangbei New Area, staff of Spreadtrum Semiconductor (Nanjing) Co., Ltd. are doing their utmost to focus on the R&D of the most cutting-edge 5G chips. Spreadtrum is the world's third baseband chip manufacturer. Last year, its global shipment exceeded 600 million sets, accounting for 27% of the global share. It is reported that Spreadtrum (Nanjing) is engaged in the R&D of 5G products and the design of mobile smart terminal systems and software. It is estimated that Spreadtrum will launch 5G chips in the second half year of 2018 and the products will be produced by TSMC in Jiangbei New Area. In the next five years, the accumulated output of Spreadtrum (Nanjing) will be about RMB 3 billion.
All the links of the IC industry, from the design and manufacturing to the packaging, tests, and design, and supporting industries are significantly mutually dependent. In the manufacturing link, TSMC ranks No.1 in the world. Industry insiders believe that no one will be able to challenge TSMC's position in the next 10 years. Enterprises from the upstream design to the downstream packaging and tests follow leaders in the industry, and are agglomerated, forming an industrial chain.
Same as Spreadtrum, MindMotion is also moving from Shanghai to Jiangbei New Area. A person in charge of MindMotion (Nanjing) said that, he experienced development of the IC industry in Shanghai Zhangjiang. First, Semiconductor Manufacturing International Corporation (SMIC) settled in Zhangjiang and promoted development of equipment manufacturing and raw material industries. Then, design companies and packaging & test enterprises followed the development, forming a leading position of the IC industry in China within less than 10 years. Last year, the industrial scale exceeded RMB 100 billion.
In addition to TSMC, Nanjing Semiconductor Industrial Base invested by Tsinghua Unigroup has also settled in Jiangbei New Area, with a total investment of over USD 30 billion.
Industrial giants' settlement in Nanjing, outstanding strengths of Nanjing universities' IC majors, abundant talent resources, Nanjing's location advantages, urban function level improvements, national new area...all these are important factors for the agglomeration of the IC industry in Nanjing.
Nanjing has established special funds of RMB 50 billion to develop the IC industry. Jiangbei New Area has set up development funds of RMB 20 billion, and Nanjing New and High-Tech Industry Development Zone has provided guide funds of RMB 10 billion. All these funds together with funds from other organizations have made Nanjing's funds for the IC industry approach RMB 100 billion.
Since 2016, there have been over 100 new IC enterprises in Jiangbei New Area, and a half of China's top 10 IC enterprises have settled there. It is estimated that the output of the IC industry in Jiangbei New Area will be RMB 100 billion by 2020. Whereas, the output of the IC industry in Nanjing was less than RMB 5 billion last year. Jiang Xingyuan estimated that Nanjing would become China's "Capital of Chip" based on the current development momentum of the IC industry in Jiangbei New Area.