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New generation information technology

Updated : 2019-01-29
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The new generation information technology industry is one of the four major industries of the Beijing Economic-Technological Development Zone (hereinafter referred to as BDA), accounting for more than 50 percent of the relevant industries in Beijing.

It mainly forms an integrated circuit (IC) industrial cluster led by SMIC's wafer manufacturing and a new display industry cluster led by BOE's 8.5-generation LCD panel production line.

In 2017, the output value of the new generation of information technology industry reached 70.5 billion yuan ($10.38 billion), a year-on-year increase of 14 percent.

The development goal of the new generation information technology industry in the BDA is: two-wheel drive of industrial development and technological innovation, constructing a new generation information technology industrial chain from a bottom up approach to chip design to system application, and forming an industrial ecology with sustainable development capability.

Through the development of high-performance integrated circuit industry, new display industry and 5G industry in the BDA, a new growth pole for Beijing's new generation information technology industry will be developed, and BDA will become a high-level training site and cluster for Beijing's new generation information technology industry.

The new generation of information technology industry mainly includes six major industrial directions: IC, new displays, next-generation communication networks, integration of three networks (telecommunications network, radio and television network, internet), Internet of Things, and cloud computing.

Integrated circuit industrial cluster:

The BDA boasts some 50 upstream and downstream enterprises in the IC industry chain. It now includes enterprises in areas such as manufacturing, packaging and testing, equipment, parts and materials, and design to form a complete IC industrial chain. The industrial scale accounts for half of Beijing's total. SMIC, one of the leading companies in the BDA, has completed the 28-nanometer process development and trial production, representing the highest level of domestic IC manufacturing.

Additionally, more than 15 IC-related funds have been established in the BDA. The total fund size exceeds 200 billion yuan. Self-owned investment and financing platform, E-Town Capital, has invested more than 25 billion yuan.

New display industry cluster:

The new display industry cluster is located in Ludong area of the BDA with a total investment of 28 billion yuan and covers an area of 6.2 square kilometers. It is based on the BOE’s 8.5-generation LCD panel production line and has introduced some 30 upstream and downstream companies including Corning, AOC, Sumitomo, Linde and Xiaomi.

BOE Technology

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The BDA and E-Town Capital jointly provide land and capital support for BOE Technology Group (Co). Since 2009, a total of 3.6 billion yuan has been spent over four years to support the development of BOE Technology.

BOE Technology has now developed into the world's fourth largest LCD panel manufacturer, driving the display industry cluster with an annual output value of over 100 billion yuan.

In 2015, E-Town Capital and BOE jointly launched the Xindongneng Fund with a fund size of over 4 billion yuan, focusing on investment in display panel related integrated circuit upstream and downstream industries.

According to IHS Markit data, in 2016, BOE's smartphone LCD display and tablet display market share continued to rank first in the world, display screen market share ranked second, and TV display market share ranked third.

Semiconductor Manufacturing International (SMIC)

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Since 2012, E-Town Capital has invested 700 million yuan using fund investment, entrusted loans and equity investment to support SMIC's second phase B2 super large-scale fab, helping it achieve a breakthrough in mass production of 32-28 nm chips in China.

At present, E-Town Capital is actively supporting the SMIC B3 project and building a 28-14nm wafer production line.