Hong Kong – MobiusTrend, the fintech market research organization, recently released a research report “WIMI Hologram Cloud Develops Its Semiconductor Business in an Orderly Manner, While Europe, Japan, and South Korea Have Seized the Semiconductor Market One after Another”. China’s emerging semiconductor industry is accelerating its development under the strong support of national policies, abundant capital reserves, and large-scale investment by enterprises. It can be said that semiconductors have become an important industry supported by the country in the past two years.
What exactly is a semiconductor? According to some data on the search engine, all objects in life can be roughly divided into three categories according to their conductivity: conductors, semiconductors, and insulators. That is, objects are either conductive or non-conductive. A semiconductor is a little bit conductive, and the conductivity of a semiconductor is between a conductor and an insulator. Semiconductors are used in many fields such as integrated circuits, consumer electronics, communication systems, photovoltaic power generation, lighting applications, and high-power supply conversion. The importance of the semiconductor industry is self-evident. It is the basis for the use of various high-tech and is spread across various top technology fields. China is a big semiconductor consumer, and its annual consumption accounts for one-third of global consumption, and its imports are as high as $300 billion, which is even far higher than China’s crude oil imports.
Although China’s semiconductor industry started relatively late, it has achieved certain development in the past ten years. It cannot be ignored that the domestic demand continues to grow, while the productivity of China’s semiconductor manufacturing equipment has always been hovering at a relatively low level. According to official data, China’s productivity was only 8-11% in the past five years, and its global market share only increased from 1% in 2016 to 2% this year. In addition, the development of China’s semiconductor industry is not only under domestic pressure, but also threats from the world. As a result of a series of chip export bans initiated by the United States, countries have become increasingly “ambitious” in the semiconductor field, vying for a place in the high-end chip field. The European Union, South Korea, and Japan have joined in succession.
The European Union launched the “Semiconductor Alliance Program” in November last year. In addition to the participation of its own 22 member states, the European Union also plans to invite semiconductor leaders from various countries and regions to set up factories in Europe. The European Union also plans to cooperate with TSMC, Samsung, and Intel. On May 13, South Korea released its strategic plan for a semiconductor powerhouse, and South Korea set its sights on semiconductor equipment led by lithography machines. It is reported that South Korea has set up a special fund of 1 trillion won (equivalent to 5.7 billion yuan) for semiconductor equipment investment, which will provide capital preparation for enterprises participating in equipment investment, encourage enterprises to actively participate in semiconductor equipment research and development, and enjoy tax relief and benefits.
On May 19th, the Japanese government also released a draft of its semiconductor growth strategy. In this latest plan, Japan intends to allocate 200 billion yen (equivalent to 11.8 billion yuan) of funds, all used in the country’s semiconductor companies to expand production, and also plans to allow companies to increase local battery production to ensure the future security of supply. In terms of funding, Japan will support the technology research and development of related companies and help develop more high-end chips. In addition, Japan also intends to invite the United States to join this program to strengthen cross-border cooperation in chip supply between the United States and Japan.
Faced with the actions of traditional semiconductor powers such as Europe, Japan, and South Korea, China has also vigorously advocated support for the semiconductor industry. As early as 2015, several industries, including semiconductors, were planned as key industries in the “Made in China 2025” plan to provide vigorous support. The “National Integrated Circuit Industry Development Promotion Program” states that by 2030, the main links of the integrated circuit industry chain must reach the international advanced level, and support and train a group of enterprises to enter the international first echelon.
According to online reports, WIMI Hologram Cloud was established in 2015. As the first share of holographic AR, it has been listed on the Nasdaq Global Edition. The business scope of WIMI includes holographic AR information technology development, software engineering production, cloud and big data, and Internet information services, to provide customers with AR-based holographic services and products. WIMI has always provided AR-based holographic services and products to meet customer needs, focusing on providing customers and end-users with innovative and immersive interactive holographic AR experiences. This is only one link of the WIMI Hologram industry chain. According to the investigation, WIMI has also established a joint venture company “Lixin Technology Co., Ltd.” with a registered capital of 200 million yuan. Since July 2020, WIMI has begun to develop its semiconductor business and provide corporate customers with comprehensive solutions for computer chip products, central processing algorithms and related services, as well as software and semiconductor businesses. In 2020, WIMI’s holographic AR business and semiconductor business generated approximately 44% and approximately 56% of revenue respectively. What is unexpected is that the company has achieved little success in the holographic semiconductor market in less than a year.
Why is the semiconductor business developed? According to market surveys, on the one hand, the establishment of a semiconductor company is the rapid growth of application requirements in the semiconductor industry in the field of holographic computer vision. At present, the field is developing rapidly, and the market space is large. The establishment of a company will help to broaden the semiconductor industry and quickly integrate market resources. On the other hand, the company has never forgotten to practice its corporate social responsibility. Through the strategic direction of the strong combination of holographic computer vision software solutions, WIMI uses its strength to broaden the company’s holographic computer vision field from the application layer down to the chip field.
In the future, Lixin Technology will also cooperate with Hainan Province across regions to enjoy tax incentives and government support in the field of the fast-developing semiconductor industry, industrial and automation technology, and applications of smart vision and holographic vision. WIMI hopes that its joint venture will combine photovoltaic power generation and communication design enterprises with a wide range of its own technologies to help develop the amorphous silicon semiconductor business. Lixin Technology will enhance its innovation, design, and technology capabilities, and will achieve investment and establishment that meet the company’s requirements for optimizing supply chain management, reducing costs, and enhancing competitiveness. The person in charge also revealed that Lixin Technology will make efforts in the upstream business of the smart product market in China and the R&D and sales of semiconductor chips to further cultivate the company’s core strength. The parent company will also give Lixin Technology relevant patents and copyrights to supervise the development of semiconductor products and sell such products to customers in the broader holographic ecosystem.
Whether from the perspective of technology or economic development, the importance of semiconductors is very important. The core units of most electronic products, such as computers, mobile phones, or digital recorders, are closely related to semiconductors. Looking at it as a whole, the semiconductor plans of the European Union, South Korea, and Japan all want to obtain their own advantages in the semiconductor industry.
What is worth mentioning is that the United States is also trying to form a semiconductor alliance with Japan and South Korea. With the combination of traditional semiconductor powers such as the United States, Europe, Japan, and South Korea, China’s semiconductor industry is constantly ushering in new breakthroughs. What will happen to the global semiconductor industry in the future? It is hoped that more excellent semiconductor companies can avoid impetuousness, seek truth from facts, and forge ahead.
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