Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 16 , 13 September 2023


Open Access | Article

Trend Evaluation of Venture Capital Investment in Mainland China’s Semiconductor Industry

Xiaomeng Han * 1 , Ningjing Zhang 2
1 Pinetree Secondary School
2 Hwa Chong Institution (Junior College)

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 16, 113-120
Published 13 September 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xiaomeng Han, Ningjing Zhang. Trend Evaluation of Venture Capital Investment in Mainland China’s Semiconductor Industry. AEMPS (2023) Vol. 16: 113-120. DOI: 10.54254/2754-1169/16/20230988.

Abstract

As chips become more prevalent in daily life, many countries understand that in order to become self-sufficient, they must build their own semiconductor supply chains. China, a country that has stalled behind in developing chips, is also aware of this. To this end, the government started vigorously promoting investments in semiconductors, turning them into popular business opportunities. Venture capitalists (VC), who typically prefer high risks but greater returns, are responsible for the greatest growth. They think that even though politics and technology have placed restrictions on the industry, there is still room for growth in the semiconductor market. This paper breaks down the recent trends in the semiconductor industry of mainland China, with a particular focus on sensitive points such as political treaties and social phenomena. According to results, the mainland semiconductor industry merits attention and has a promising future. Venture capitalists should look for companies with the following characteristics: highly educated and experienced employees, the ability to design chips independently, and a stable supply chain.

Keywords

semiconductor, Chinese chips, venture capital, PEST model, POCD framework

References

1. Zhu, Zaiwen. Brief Introduction to the Development of the Semiconductor Equipment Industry[J]. Xiamen Technology, pp:12-14, 2021

2. China Economic Network.US Chip Bill Disrupts Global Supply Chains. August 26, 2022. Retrieved on October 9, 2022. Retrieved from: http://intl.ce.cn/sjjj/qy/202208/26/t20220826_38059479.shtml

3. Itjuzi, https://www.itjuzi.com/analysis#line, last accessed 2022/10/09

4. Li, Pei. Ijiwei. As the tide recedes, semiconductor startups face the moment of choice. May 31, 2022. Retrieved on October 9, 2022. Retrieved from: https://www.laoyaoba.com/n/820371

5. BizVibe. China Sets to Dominate the Global Semiconductor Market. July 17, 2022. Retrieved on October 9, 2022. Retrieved from: https://blog.bizvibe.com/blog/electronics-and-telecom/china-leads-global-semiconductor-market#:~:text=China%20continues%20to%20be%20by,6%25%20and%205.5%25%20respectively.

6. Gon, Xueyuan. Development Trend of China's Semiconductor Industry and Investment Opportunities for Upstream New Materials[J]. New Material Industry, pp:22-29,2020

7. Ye,Tianchun. Some Thoughts on the Innovative Development of Integrated Circuits in my country under the New Situation. ICDIA2022. Suzhou, 2022.

8. General Administration of Customs of the People’s Republic of China. Notice of the Department of Customs Collection and Administration on Issues Concerning the Implementation of Import Tax Policies Supporting the Development of the Integrated Circuit Industry and Software Industry. May 28, 2021. Retrieved on October 9, 2022. Retrieved from: http://www.customs.gov.cn/customs/302249/zfxxgk/zfxxgkml34/3732568/index.html

9. DIGITAL 2022: China   Simon Kemp  https://datareportal.com/reports/digital-2022-china

10. National Development and Reform Commission. [Expert Opinion] Big Data Analysis: In 2021, the Number of Students Returning from Studying Abroad for Employment will Exceed One Million for the First Time. To Clear the "Middle Block" of Returnee Employment Requires Continuous and Precise Efforts. September 7, 2020. Retrieved on October 9, 2022. Retrieved from: ​https://www.ndrc.gov.cn/xxgk/jd/wsdwhfz/202109/t20210907_1296152.html?code=&state=123​

11. Chinese Service Center for Scholarly Exchange. The Ministry of Education and Beijing Signed a Cooperation Framework Agreement on Jointly Building a Service Demonstration Zone for Overseas Talents Returning to China. August 30, 2022. Retrieved on October 9, 2022. Retrieved from:  https://www.cscse.edu.cn/cscse/sy/xwdt/2022083011240260226/index.html

12. Nikkei Chinese website. Yukio Sakamoto Comments on the Gap in China's Semiconductor Industry. May 31, 2022. Retrieved on October 9, 2022. Retrieved from: https://cn.nikkei.com/china/ccompany/48684-2022-05-31-05-03-00.html?start=1

13. itjuzi. 2020 China Semiconductor Industry Investment Interpretation|Selected Reports. January 26, 2021. Retrieved on October 9, 2022. Retrieved from: https://www.sohu.com/a/446800750_355020

14. tianyancha, https://www.tianyancha.com, last accessed 2022/10/09

15. Nanjing JiangBei New Area. Zhang Qiang Chairman of Xinchi Technology. October 12, 2020. Retrieved on October 9, 2022. Retrieved from: http://njna.nanjing.gov.cn/cxrc/cxzy/rcfc/202010/t20201012_2429771.html

16. Zhang,Lu. Baidu, Operator Finance Network. Qiu Yujing, CEO of Xinchi Technology, is a Female Executive but is Good at R&D. The Company Only has 200 People? January 29, 2022. Retrieved on October 9, 2022. Retrieved from: https://mbd.baidu.com/newspage/data/landingshare?context=%7B%22nid%22%3A%22news_8786874171144374427%22%7D&isBdboxFrom=1&pageType=1&rs=2810637412&ruk=pTPQw5mEysm9sIdBnwOhmg&urlext=%7B%22cuid%22%3A%22_ivJu_icS80RuSu_gaBQiluQ2a0biHf30ivJuli32uK70qqSB%22%7D

17. CheDongXi. Two Years Later, Why is the Car Still Missing Chips? June 6, 2022. Retrieved on October 9, 2022. Retrieved from: https://chedongxi.com/p/277814.html#:~:text=%E5%88%86%E6%9E%90%E5%8F%91%E7%8E%B0%EF%BC%8C%E8%8A%AF%E7%89%87%E7%9F%AD%E7%BC%BA%E8%83%8C%E5%90%8E,%E5%9C%A8%E5%8F%98%E5%8C%96%EF%BC%8C%E4%B8%94%E9%9A%BE%E4%BB%A5%E9%A2%84%E6%B5%8B%E3%80%82

18. Xinyu Mianbaoban. In the 400 Billion Chip Market, How Much Can Xinchi Technology win? January 17, 2022. Retrieved on October 9, 2022. Retrieved from: https://www.eet-china.com/mp/a104881.html

19. Ijiwei. Xinchi Technology: Defining the "China Speed'' of Automotive Chips. January 14, 2022. Retrieved on October 9, 2022. Retrieved from: https://www.laoyaoba.com/n/804510

20. Tianyancha, https://www.tianyancha.com/, Crunchbase, https://www.crunchbase.com/, last accessed 2022/10/09

21. HURUN Report. Global Unicorn List in 2022. August 30, 2022. Retrieved on October 9, 2022. Retrieved from: https://www.hurun.net/zh-CN/Info/Detail?num=L9SQPH9FKJB1

22. HURUN Report. Global Unicorn List in 2022. August 30, 2022. Retrieved on October 9, 2022. Retrieved from: https://www.hurun.net/zh-CN/Info/Detail?num=L9SQPH9FKJB1

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-75-1
ISBN (Online)
978-1-915371-76-8
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/16/20230988
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated