More advanced semiconductor manufacturing processes and more production capacity for special processes are likely to emerge in China during the country's 13th five-year economic plan period which ranges from 2015-2020 thanks to equity investment from the National Integrated Circuit Industry Investment Fund, according to Digitimes Research.
The national investment fund, which amounts to CNY136 billion (US$21.32 billion), has committed direct equity investments in a number of leading semiconductor companies or their subsidiaries, including Semiconductor Manufacturing International Corporation (SMIC), Semiconductor Manufacturing North China (Beijing) and Advanced Micro-Fabrication Equipment.
However, Digitimes Research believes that the national semiconductor investment fund is most likely to provide capital to China-based IC companies to access technology and market through acquisition.The acquisition will also be the most effective way for China to improve the self-sufficiency rate for the production of IC parts.
The national investment fund is also likely to consolidate capital from other investment funds for implementing equity investment and acquisition projects. It is highly possible that the fund has offered financial support to Hua Capital Management to acquire OmniVision Technologies and will also render support to Uphill Investment to acquire Integrated Silicon Solution (ISSI), said Digitimes Research.
