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Starting from scratch, the industrial output value of integrated circuits in the Lingang New Area has increased sixfold in five years. It is expected to reach 20 billion yuan by the end of this year and achieve an industrial scale of over 40 billion yuan.

At the fifth anniversary conference of Oriental Chip Port held on August 19, Wu Xiaohua, deputy secretary of the Party Working Committee of Lingang New Area, said that through five years of efforts, the goal of building Oriental Chip Port into a national integrated circuit industry base has been achieved ahead of schedule. In the next five years, the goal of the scale of Lingang's integrated circuit industry is to exceed 100 billion yuan and become a growth pole and gathering place for China's integrated circuit industry.

Oriental Chip Port is one of the first batch of characteristic industrial parks in Shanghai and is also the core bearing area of ​​the integrated circuit industry in the new area. Over the past five years, Lingang has relied on the "Oriental Chip Port" to build from scratch and lay out the integrated circuit industry in the entire chain. In the past five years, integrated circuits have become the leading industry with the largest investment scale, the highest industrial concentration, and the fastest output value growth in the Lingang New Area.

New investment in integrated circuits in Lingang accounts for 40% of the city's total

Integrated circuits are one of Shanghai's three leading industries and are also a core industry that the new area focuses on.

Data shows that the total investment signed in the Lingang integrated circuit industry over the past five years is 260 billion yuan, and 2,000 acres of land have been transferred. It currently has more than 300 companies in various fields such as chip design, manufacturing, materials, equipment, packaging and testing, and core components, realizing a full-chain layout of the integrated circuit industry.

Among them, in the field of wafer manufacturing, Lingang has the characteristics of large manufacturing scale and full range of processes. In the field of packaging and testing, Lingang is actively deploying 3D advanced packaging and testing and focusing on automotive-grade packaging and testing. In the field of equipment, Lingang has achieved full coverage of eight core equipment. In the field of materials, the full process of raw materials in key links has been covered. In the field of design, full coverage of subdivided tracks has been achieved, and it has become the region with the highest concentration of EDA subdivided track enterprises in the country.

As the cluster effect becomes apparent, Lingang adds more than 50 new integrated circuit projects each year.

On the same day, a number of new key projects from 14 companies including Shanghai Tianyue, Jinghe Optoelectronics, Xinwei Compound Semiconductor, and Shanghai Institute of Composite Materials were launched in Lingang, with a total investment of 28.8 billion yuan.

Yu Tao, chairman of Shanghai Jinghe Optoelectronics Technology Co., Ltd., said that based on Lingang's talent advantages, technical advantages and upstream and downstream advantages in semiconductor chips, Jinghe Optoelectronics has established an advanced packaging and testing base for digital light source chips. "We hope that through the implementation of the project, we can achieve mass production next year, and mass production at the same time as foreign projects and chips of the same level, or even strive for mass production ahead of schedule."

Yu Tao said that currently more than 80% of the light sources for domestic automobiles are still from abroad. He hopes to achieve overtaking in the lane or iterative overtaking through the production of digital light source chips.

Li Wei, chairman of Shanghai Xinsheng Semiconductor Technology Co., Ltd., said that as of now, Xinsheng Semiconductor has shipped more than 15 million pieces, and its monthly production capacity has reached 600,000 pieces this year. The production capacity will be doubled in the future, and it is hoped that the monthly production capacity will reach 1.2 million pieces by 2027 at the earliest.

"In the first half of this year, new investment in integrated circuits in the new area accounted for 40% of the city's total investment in the integrated circuit industry." Tang Wenkan, deputy director of the Shanghai Municipal Economic and Information Commission, said that over the past five years, Oriental Chip Port has become an important "engine" of Shanghai's integrated circuit industry.

In the first half of this year, the scale of Shanghai's integrated circuit industry exceeded 200 billion yuan, and investment in the integrated circuit industry accounted for more than one-third of the city's total industrial investment.

In the "White Paper on the Top 100 Cities in Global Integrated Circuit Industry Comprehensive Competitiveness" recently released by the World Integrated Circuit Association, Shanghai ranked fifth, becoming the city with the strongest comprehensive competitiveness in the integrated circuit industry in mainland China.

The Lingang New Area Integrated Circuit Industry Development Report shows that the new area currently has 56 high-tech enterprises, 43 specialized and new small and medium-sized enterprises, 15 specialized and new "little giant" enterprises, and 24 corporate technology centers in the integrated circuit field. Xu Hai, deputy chief economist of Lingang Group, said that from 2023 to date, the number of financings of registered integrated circuit companies in Lingang has totaled 74, accounting for 36% of the total financing of integrated circuit companies in the city during the same period. Twelve local companies have received investment from the National Integrated Circuit Big Fund, of which 10 companies have been successfully listed.

The next five years: Double 10 billion wide bandgap semiconductor industry base

In the next five years, Wu Xiaohua said that the Lingang New Area will support the growth and development of local companies through industrial funds and collaborative procurement, while leveraging policy advantages to attract upstream and downstream integrated circuit companies to carry out collaborative research in the new area and cultivate a group of singles champions in specific fields with international competitiveness and influence.

At the same time, the new area will continue to improve the industrial ecology and build a double 10 billion wide bandgap semiconductor industrial base with a scale of over 10 billion for equipment materials and wafer manufacturing and over 10 billion for module devices. The new area will also focus on making up for shortcomings, attract global talents to overcome technical difficulties, gather 500 influential integrated circuit companies at home and abroad, and build a 100 billion-level integrated circuit industry cluster.

Wide bandgap semiconductors are also called third-generation semiconductors, and refer to wide bandgap semiconductor materials represented by silicon carbide and gallium nitride. With the rapid development of new energy vehicles, energy storage, photovoltaics and other industries, wide bandgap semiconductors have become a hot spot in the development of the integrated circuit industry, especially silicon carbide in the fields of new energy vehicles and energy storage, and gallium nitride in the fields of consumer electronics and radio frequency, which are all in the explosive stage.

At the 2024 Shanghai Global Investment Promotion Conference and Lingang New Area Wide Bandgap Semiconductor Industry Chain Investment Opportunities Sharing Conference held on March 29, Wu Xiaohua said that the Lingang New Area has currently gathered a group of leading wide bandgap semiconductor companies. It is planned to use three years to build the Lingang New Area into a base with the most complete wide bandgap semiconductor industry chain, the strongest innovation capabilities, and the best application ecology in the country through specific measures such as expanding the scale of wafer manufacturing and increasing support for the research and development and verification of special equipment for wide bandgap semiconductors.

To achieve the above goals, Wu Xiaohua said that in the next step, the Lingang New Area will focus on wafer manufacturing, packaging and testing, core equipment and key materials, and provide services and support in four aspects: institutional innovation, platform construction, resource coordination, and improvement of urban functions, to safeguard the development of enterprises.

The first is to persist in institutional innovation and provide greater support for core technology breakthroughs, industrial chain ecosystem cultivation, and convenient financial and trade connectivity.

Secondly, we will adhere to original innovation, encourage applied innovation, and promote mass innovation. The new area will introduce a number of strategic, global, and forward-looking high-level national laboratories, build more than 20 innovation platforms, and support early projects through the "Science and Technology Innovation Station + Science and Technology Innovation Fund".

At the same time, we must coordinate resources from all parties, accelerate the modernization of the new city, increase efforts to attract talent, and continue to make settlement, housing, medical care, education and other life elements that talents are concerned about the top priority of talent work in the new area, create a favorable environment for domestic and foreign talents to settle in and develop, and make the hard environment better and the soft environment warmer.

Finally, we will continue to improve the city's functions. Wu Xiaohua said that with the completion of the "Eastern Hub", the new area will achieve a high degree of convenience in land, road, rail, air and sea, which can quickly narrow the distance between enterprises and global partners.

On the 19th, the Shanghai Branch of the Bank of China issued the "Plan to Support the High-Quality Development of the Entire Integrated Circuit Industry Chain in Shanghai", stating that it will invest 100 billion yuan in special credit resources in the next five years to support the development of the integrated circuit industry.