ZHIYI XIAO —HUATIAN TECHNOLOGY: SHORT-TERM PAIN ACCELERATES THE GROWTH OF DOMESTIC ENTERPRISES

Short-term pain accelerates the growth of domestic enterprises -- Interview before the 14^th China IC Assembly & Testing Industry Chain Innovation and Development Summit

Huatian Electronics Group Corporation, whose IC annual assembly capacity has grown to 60 billion, is one of the three giants in ’domestic assembly and testing industry，assembly and testing companies in Taiwan Province are not included . Mr. Zhiyi Xiao is currently the Director of Tianshui Huatian Technology Co., Ltd., the director and General Manager of Huatian Technology (Kunshan) Electronics Co., Ltd., and the Rotating Chairman of the assembly and Testing Branch of China Semiconductor Industry Association. Recently, Mr. Xiao accepted an exclusive interview before the 14th China IC Assembly & Testing Industry Chain Innovation and Development Summit Forum.

In response to the current severe situation in the global semiconductor industry, such as political disputes, economic sluggishness, and the spread of the epidemic, Mr. Xiao shared his views: the spread of the epidemic has accelerated digital transformation, and home office and virtual meetings will drive continuously growth of related semiconductor industries,the gradual penetration of 5G mobile phones will also greatly boost the growth of consumer electronics products. In addition, with the foreign epidemic flattening policy and the gradual recovery of the economy, it is predicted that the entire global semiconductor industry will continue to remain strong growth in the future.

Market opportunities and challenges coexist in China's semiconductor industry. Mr. Xiao believes that the demand for China semiconductor market is strong, and the growth rate of the market size is much higher than the global average. Coupled with policy support and China's better control of the epidemic, China semiconductor market will continue to grow in the next five years. . In addition, geopolitical disputes will accelerate the partial decoupling of the semiconductor industry chain between China and the United States. China semiconductor industry is facing short-term pain, and core semiconductor companies may face new sanctions, embargoes and other uncertain factors, which will bring great challenges to the operation and growth of enterprises. At the same time, short-term pain will further promote and accelerate the growth of domestic semiconductor companies, and continuous breakthrough and innovation will become an important task for China semiconductor in the next few years.

The unbalanced development of various links in domestic semiconductor industry chain and the situation of stranglehold urgently needs to be solved, and policies and measures to support assembly and testing enterprises from all walks of life have been gradually implemented. Regarding the healthy and orderly development of domestic assembly and testing industry chain, Mr. Xiao said that in order to get rid of the stranglehold problems, speeding up localization has become a top priority. Giving full play to the role of the National Assembly and Testing Alliance, select key leading companies to give more policy and resource support, and strengthen the R&D capabilities of enterprises. At the same time, do a good job of matchmaking and find suitable assembly and testing factories to cooperate with localization verification. Preferential policies are given to enterprises that have been verified, so that more domestic equipment and material enterprises have the opportunity to try and make mistakes, and accelerate the process of localization.

As the semiconductor manufacturing process follows Moore's Law to the limit, more and more new processes and new methods are spawned. How can assembly and testing companies with upstream and downstream companies of industry chai work together? Mr. Xiao shared his personal views: It is recommended to establish national integration Circuit joint research body, uniting the leading enterprises of upstream and downstream in the industry chain, focusing on advanced assembly technology and process research, developing and innovating high-end advanced assembly technology with independent intellectual property rights, and promoting international influence of the domestic assembly and testing industry ..

We hold the assembly and testing industry chain innovation and development summit forum every year, aiming to build a platform of communicating and cooperating between the upstream and downstream industries of the assembly and testing industry chain, and provide opportunities for assembly and testing industry chain companies to show new technologies, new products, and new applications. Mr. Xiao said that this meeting was very good and provided us with an opportunity for communication and cooperation.