[Argyfwng Meddiannu Marchnad IC Taiwan 1]What MediaTek saw Cai Mingjie Analysts say 2 key points

For the first time in the past 20 years, Taiwan’s IC design group published an industry white paper, MediaTek chairman Cai Mingjie served as the general consultant, and joined hands with major manufacturers such as Novatek, Wonderview, and Realtek to warn that Taiwan’s IC market share will be surpassed by China in 2026. , After seeing those crises in the platform factory, industry analysts pointed out that in addition to strategy and personnel shortage, Taiwan’s research and development projects and dividend policy are even more of under the table. the three major future trends, high-speed computing (HPC), artificial intelligence (AI) and automotive electronics (Auto), “Taiwanese factories have limited R&D investment in the new field of IC, and have no right to speak at all .”

Taiwan’s IC market is in crisis, what MediaTek Tsai Mingjie saw, analysts say 2 key points. File photo

The escalation of the Sino-US trade war in 2018 and the disruption of the global supply chain caused by the new crown pneumonia epidemic in 2020 have allowed Taiwan to benefit from the order transfer effect one after another, In the technological war, two set To allow Taiwanese factories to benefit from each other, however, after enjoying the good times of “de-sinning”, the Russian-Ukrainian war in February 2022 ignited the “de-Taiwanization” crisis. The establishment of TSMC’s overseas factories is an important turning point.

Taiwan’s IC design industry will reach a market share of 22% in 2021, but will decrease to 18% in 2022 as the epidemic dividend fades and final products enter inventory adjustments. In the future, under the increasing geopolitical risks, the policy thinking of the United States, Europe, China, Japan, and South Korea on the development of semiconductors has been upgraded from the previous industry to the national strategic level. makes Taiwan’s IC design industry well face the competitive pressure of Chinese industry.

In 2022, the revenue of Taiwan’s IC design industry is estimated to be about 40 billion US dollars, which is a very profitable industry with an average net profit rate of 20%, and sits firmly as the second largest industrial chain in the world . Taiwan’s semiconductor industry contributed 12% of GDP with 320,000 employees, and the IC design industry contributed 29% of semiconductor revenue and 2.4% of GDP with only 52,000 people. In the semiconductor industry, it is second only to the 6.8% of the foundry

Five companies led by MediaTek were proposed in the white paper released this year: 1. Planning and promoting the semiconductor strategy at national level; 2. Adopt proactive budgeting to strengthen the force; 3. Expand the process of cultivating IC design talents and win overseas 4. Re-examine foreign business policy to establish research and development centers in Taiwan 5. Strengthen the mastery and installation of IC design core technologies; 6. Assist the industry to consolidate and internationalize to promote industrial upgrading and other suggestions.

However, senior analysts pointed out that the market share crisis in Taiwanese factories is due to their love and nature of being good at making a quick buck. Although major manufacturers have repeatedly claimed that their research and development investment has reached a new peak and exceeded 100 billion yuan, but if you look closely at the research and development projects, you will see that the key trends that will affect really on the industry in the next 3 to 5 years, such as fast computing, artificial intelligence, and semiconductor vehicles. Most of them are absent.

Some analysts pointed out that the advanced automotive markets leading the peninsula and high-speed computing have lasted for several years, but where is Taiwan’s IC design industry in the design of the main chips and other products?

The impact of research and development investment is actually more related to the dividend policy that shareholders are concerned about. The legal person also analyzed that the IC design industry has made a lot of money in the past two years. The dividend policy high has become a call to attract foreign investment 70% of the profits are distributed to shareholders In addition to interest rates, should we worry more if these companies stop making new investments, or are they afraid investment, which could lead to a slowdown in the company’s overall growth.

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