Study On The International Competitiveness Of China's Integrated Circuit Industry

Integrated circuit(IC)has brought significant impact on the global economy since its inception.On the one hand,IC is the foundation and driving force of the electronic information industry.Each innovation of its technology can promote the development of the information industry and further enable the new growth on global economy.On the other hand,with the development of a new round of technology industry revolution,such as big data,artificial intelligence and Internet of Things,IC industry has greatly affected the development of the future science and technology industry revolution,and has become a key factor in the future international competition.Therefore,it is of great practical significance to study the international competitiveness of China's IC industry.With the continuous development of global trade and the further deepening of international division of labor,the intra-industry division of labor and trade in the IC industry are increasingly replacing the inter-industry ones.It cannot accurately explain the international competitiveness of the IC industry only through the traditional international competitiveness evaluation relied on the import and export data.Therefore,this paper attempts to analyze the international competitiveness of China's IC industry in the upper,middle and lower reaches on the static and dynamic levels from the perspective of global value chain and related international comparisons.This paper also analyzes the main factors on influencing the competitiveness of China,and puts forward relevant policy recommendations for the future development of China's IC industry.Firstly,we analyze the development trend of global IC industry,the market scale and the import and export trade status of China's IC industry.It can be found that since the 21 st century,China's IC industry has made remarkable achievements:The market scale has been expanding,and the growth rate is bigger than the global IC industry;the industrial structure is continuously optimized,and the upstream links account for the proportion of the domestic IC industry value chain keeps growing.However,the import and export trade of China's IC products is in a state of deficit,and the import size is expanding.At present,China has become the world's largest importer of IC products,accounting for more than 30% of global IC imports.It has resulted that the core components of China's electronic information industry is subject to those countries with powerful IC industry,which has brought huge hidden dangers to China's information security and limited the development of China's information industry.Under such conditions,this paper utilizes the perspective of micro-enterprise and attempts to find out the position and weakness of China's global IC industry in competition through the international comparison,and clarifies the gap with other IC industry powers or regions.For the static competitiveness analysis,this paper constructs four competitive indicators from three levels of scale,R&D and profit.They are fixed assets,R&D investment,total operating income and gross interest rate.The study finds that the upstream enterprises of China's IC industry have the weakest international competitiveness,followed by the middle reaches and the downstream.From a global perspective,enterprises in United States are the most competitive on the upstream and those in Taiwan are the best on middle stream and downstream.When analyzing of dynamic competitiveness,the Malmquist index in date envelopment analysis is used in this paper to calculate the total factor productivity of major IC industry enterprises,and then measure the competitiveness by the change of productivity.The higher the productivity,the stronger the competitiveness.We find that the overall productivity of China's IC industry is lower than the average level of global productivity due to the low productivity of upstream enterprises.However,it is worth noting that in the past two years,the productivity level of China's IC industry has been continuously improved,and the entire industry is developing in a good direction.Based on the previous study,this paper further analyzes the main factors affecting the international competitiveness of China's IC industry,and we conclude that technology,talent,capital,national policy,integrated circuit related industry development and corporate strategy are important factors affecting the competitiveness of China's IC industry around the world.We also find that the development of China's IC industry still faces many challenges,such as insufficient technological innovation capability,a large gap in talent supply,small capital investment,imperfect intellectual property system,and lagging development of related materials and equipment industries.Finally,the paper puts forward relevant policy recommendations on how to promote the development of China's IC industry under the global competitive situation.