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China's semiconductor industry exports soared by 80%.

via:博客园     time:2019/4/15 8:31:44     readed:124

First Finance Qian Xiaoyan

Israel, which is famous for exporting high-end electronic chips, has seen a surge in chips exported to China in 2018.

According to the latest data from the Israel Export Association (IsraelExportInstitute), Israel's exports of Chinese semiconductors soared by 80% to US$2.6 billion (about RMB 17.45 billion) in 2018. Compared with the same period of last year, Israel's semiconductor products sold to the US fell 20% to US$860 million.

AmirLati, the official of the Asia-Pacific Division of the Israeli Ministry of Foreign Affairs and former Israeli Consul General in Chengdu, revealed in an exclusive interview with the First Financial Journal that current semiconductor exports accounted for 56% of Israel’s exports to China. At the same time, other technology Products such as smart manufacturing and medical devices are growing at a large rate.

Jing Qian, a partner of the Rock and Roll Investment Fund, which has been engaged in China-Israel investment for a long time, told the First Financial Reporter that the Israeli semiconductor industry is highly complementary to the Chinese market. The strength of the Israeli semiconductor industry lies in its excellent design and development capabilities, interaction capabilities, integration capabilities and Closely linked to the application area.

Highly complementary to the Chinese market

According to data released by the Israel Export Association, semiconductors accounted for 3.9 billion U.S. dollars in total exports of goods in Israel in 2018, which means that two-thirds of the semiconductor products produced by Israel were sold to China.

The association also said that semiconductor production testing equipment sold to China in 2018 also increased by 64% to US$450 million (about RMB 3.02 billion). These devices are used to control and inspect the manufacturing processes of semiconductor factories and will help Chinese manufacturers process and manufacture semiconductor products locally.

Israel’s total merchandise exports to China (excluding diamonds) increased by 50% in 2018 to reach $4.7 billion. China has thus replaced the United Kingdom as Israel's second-largest commodity export market, with exports surpassing the US$10.9 billion in the United States. This new change is what the Israeli government is happy to see. Blue Sky Ming told the First Financial Reporter that the Israeli government has been working hard to deepen economic and trade exchanges with China for many years.

According to data released by World Semiconductor Trade Statistics in February this year, the global semiconductor market rose by 13.7% in 2018 to reach US$468.8 billion (about RMB 3.15 trillion).

It is estimated that the size of China's semiconductor market reached 1.46 trillion yuan in 2018, accounting for about half of the global semiconductor market. It is estimated that the proportion of the global market will further increase to 56% by 2025.

Jing Qian, who has been engaged in China-Israel investment for a long time, has visited many Israeli semiconductor companies and has an in-depth summary of why the Israeli semiconductor industry is strong. He told the First Financial reporter that first of all, Israel's semiconductor research and development has ecosystem support, not only industrial incubators, but also commercial counseling. Secondly, in the industrial chain, collaboration is not just at the domestic level, but global collaboration.

Jing Qian told the First Financial Reporter that, more importantly, these semiconductor products are linked to communications, traffic command, industrial Internet of Things, telemedicine, etc. Recently, many semiconductor products are related to consumer electronics, "Israel Semiconductor Development It is not developed for the purpose of developing chips, but to solve practical problems, and the trend is to link with the application side.

Developed semiconductor industry

Israel has bred more than 160 semiconductor companies, including Intel, Qualcomm, Samsung, Broadcom, etc., and almost all of the world's leading international semiconductor companies have set up camps in Israel.

Lantian Ming confirmed to the First Financial Reporter that Intel’s semiconductor products accounted for a large part of Israel’s rapidly growing semiconductor exports to China. According to an industry source, the media disclosed that the ratio is at least 80%.

Intel announced a $5 billion investment in 2017 to expand its capacity in the southern Israeli city of Kiryat Gat, which Intel claims will produce the world's smallest and fastest chip.

In January 2019, the Israeli media reported that Intel plans to invest another $11 billion to build a new chip manufacturing facility in Kyle Yate. The details are still under negotiation between Intel and the Israeli government. In addition to expanding capacity in Israel, Intel also acquired Israel's chip and technology company Mobileye, which focuses on cars, for $15.3 billion in March 2017.

Currently, at least 21 million vehicles worldwide are equipped with unparalleled technology, and more than 80% of major automakers use incomparable chips to avoid collisions. According to the survey, the incomparable anti-collision warning system avoided 70% of car accidents in Colombia and 84% in India.

After a large company acquires a small company, the acquired company usually integrates into the acquired company. However, in the case of Intel's acquisition, it is inconspicuous not only to retain the original name, but also to undertake all of Intel's previous driverless planning.

An Intel spokesperson said that the company exported $3.9 billion worth of products from Israel in 2018, up from $3.6 billion in 2017. At present, Intel has invested about US$35 billion in Israel. It is the largest investor in Israel's technology sector. It has more than 10,000 employees in Israel and about 60% of its employees are engaged in semiconductor R&D. Many of the company's new technologies were developed in Israel.

Lantian Ming told the First Financial Reporter that in the international market, both China and other countries are interested in Israel's semiconductor industry and full of confidence. He specifically mentioned the case of Israel's famous semiconductor manufacturer Mellanox. Miles is known for producing data center chips and hardware components that support cloud services. Its founder and CEO, Eyal Waldman, told the media that his company has benefited from the rapid growth of its business in China.

NVIDIA officially announced in March that it will acquire Myrox for $6.9 billion in cash. This is the largest acquisition by NVIDIA in history, and market analysis says it will support the company's data center chip business, thereby reducing the company's reliance on the game business, which is expected to be completed by the end of 2019.

Since October 2018, Mai Luosi has become a hot acquisition target for international technology giants including Microsoft and Intel. At the end of 2018, there was news that Microsoft hired Goldman Sachs to negotiate the acquisition of Mai Luosi. Intel made a bid for $6 billion, and eventually NVIDIA bid for $6.8 billion, winning among many competitors.

Lan Ming Ming told the First Financial Reporter that there are many other outstanding semiconductor companies in Israel. He believes that the potential of Israeli semiconductor companies has not been fully stimulated.

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