To Build A Chinese Core, No Rush

We  are all in a hurry to develop China's integrated circuit industry and  solve the "core" problem in China's manufacturing industry. However,  there are things that cannot be rushed. Impetuosity will make us fall  into the wrong zone, but it will develop more slowly. Industry  development has its own rules. The chip is an extremely complex system.  Complex systems are developed step by step. Problems must be discovered  in the application process and continuous improvement in solving  problems. The threshold for this matter is particularly high and we cannot worry. We must withstand the temptation, endure loneliness, and develop technical know-how to make the industry work.

In  recent years, China’s chip imports have hit record highs, and the  amount of imports has long exceeded the amount of oil imports. The lack  of “core” has become a “core” disease of “Made in China”. To achieve domestic substitution of chips, both the Chinese government and private capital invest a lot of money. However,  in 2017, the deficit in China's IC import and export reached a record  high of US$193.26 billion, a 16.6% increase from 2016. Why does huge investment have no obvious effect?

First, good steel is not used on the blade. In  the past, Western technology companies have strictly defended China  against technology, making China firmly determined to develop its own  technology. After achieving certain results, Western technology companies began to transfer phase-out technologies to China. Due to confusing the two goals of achieving safety and control and  strengthening the industry, and the lack of understanding of the arduous  nature of the introduction and digestion of foreign technologies, large  sums of money are spent on the purchase of foreign elimination  technologies.

Second, blind investment in social capital leads to misallocation of funds. One  of the major attributes of social capital is to seek advantages and  avoid predators. It is very hot for new emerging hot spots such as  artificial intelligence chips and Internet of Things chips, but for CPUs  and GPUs that have been monopolized by the United States and its  allies, only The national team is doing, and social capital has little investment. The  emerging sector has a unique feature, that is, the market is still in  the development period, there is no scale, temporarily unable to return  funds from the market. This makes the investment of social capital a wind-burning game for  precipitating winds, so that funds that could have been invested in  short-circuit areas such as CPUs and GPUs are consumed in the game of  financial capital.

Finally, the exaggeration of some companies in business leads to low capital efficiency. Compared  with the ten-year-old sword-making technique, packaging, operation, and  grab openings are obviously easier for investors to favor. For  example, because artificial intelligence is very popular, many  companies have begun to play the concept, whether it is to do bitcoin  mining machine, or to do DSP, and they have become artificial  intelligence chip companies. Up to now, China has completed or is financing the artificial  intelligence chip company has more than 40, and most are established  after 2015.

We  are all in a hurry to develop China's integrated circuit industry and  solve the "core" problem in China's manufacturing industry. However,  there are things that cannot be rushed. Impetuosity will make us fall  into the wrong zone, but it will develop more slowly. Industry  development has its own rules. The chip is an extremely complex system.  Complex systems are developed step by step. Problems must be discovered  in the application process and continuous improvement in solving  problems. The threshold for this matter is particularly high and we cannot worry. We must withstand the temptation, endure loneliness, and sturdy techniques to make the industry work.