2016 semiconductor industry a series of mergers and acquisitions frenzy industry growth rate is still falling _ semiconductor, chip, electronic components

The conductor industry belongs to the electronic information industry and belongs to the hardware industry. It is an industry developed on the basis of semiconductors. Almost all foreign chip makers with technical monopoly or semi-monopoly, as well as high-quality electronic component manufacturers, seem to be in a shortage of production capacity forever.

2016 semiconductor industry a series of mergers and acquisitions frenzy industry growth rate is still falling

According to the World Semiconductor Trade Statistics Organization (WSTS), global semiconductor sales will increase by 0.2% to $336 billion in 2015. The global semiconductor market will show a warming trend in the next few years, with growth of 1.4% and 3.1% in 2016 and 2017, respectively.

At the same time, after a series of mergers and acquisitions frenzy in the semiconductor industry, the growth rate of the entire industry is still declining. Industrial organizations such as the Semiconductor Industry Association (SIA) have predicted that the wafer industry will be “slightly growing” in 2016. But even less optimistic, many research institutions including Gartner, HIS, ICInsights and IDC are predicting negative growth in the chip market this year.

Faced with the gradual challenge of Moore's Law, how is the semiconductor industry's development status going? “The semiconductor industry is in the initial stages of its life cycle and has not really entered the stage of rapid growth, let alone the slow-growing maturity stage.”

For the semiconductor industry, from wafer to production to packaging testing. However, why is there always a shortage of production capacity and a serious shortage of goods?

Almost all foreign chip makers with technical monopoly or semi-monopoly, as well as high-quality electronic component manufacturers, seem to be in a shortage of production capacity forever. If you change to a domestic manufacturer, this is a matter of life! Once there is insufficient capacity, you should immediately expand the production capacity, the funds are not enough to finance, or you can prepare for the next off-season by learning lessons.

However, the practice abroad is that it would rather lose the order because the supply is not timely, and it will never sell a lot of goods, and it will not expand the production capacity. Perhaps they are not considering market conditions in the short term of one or two years, but the long-term sustainability of future orders.

In the chip industry, foreign chip suppliers will not increase production capacity due to the short-term demand peak brought by China's economic stimulus policies and the illusion of out-of-stocks caused by the speculators, and it will not be because of the fire in the factory or the earthquake. Expand the factory building. When they are undercapacity, they are still producing according to the order, or by raising the price to suspend the problem of short supply.

Do foreign manufacturers do not have to consider that the Chinese customers missed the new product market due to the long supply cycle, and abandoned it one by one?

There are at least two reasons: First, the core components used in China's consumer electronics products are still in the hands of foreign manufacturers, such as CPU, Flash, and baseband, RF devices and MEMS sensors. When there are only a few foreign manufacturers on the supply side, no one of them will break the "continuous order" principle and expand production capacity.

Second, when the “continuous order” principle becomes the basic consensus of Western companies, their entire industry chain is also calm in the face of sudden order increases, which means that even if someone wants to increase production capacity, the cycle is very Slow, because the entire industry chain is not prepared for this. Don't worry that peers will compete for their orders by expanding production capacity.
Third, the root of the problem may still be the technological monopoly. In many fields, the key raw materials and production tools (including equipment, instruments, etc.) used in the mid- to high-end market are mostly held in the hands of Europe, the United States, Japan and South Korea. Chinese companies can only be in the industrial sector where there is not much technical content. Cheap labor advantage, in exchange for some hard-earned money. For the raw materials and production tools necessary for production, there is only one waiting in line, because there is no line in the queue.

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