{"id":134388,"date":"2023-05-16T16:29:33","date_gmt":"2023-05-16T23:29:33","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=134388"},"modified":"2023-05-16T16:29:33","modified_gmt":"2023-05-16T23:29:33","slug":"china-dominates-semiconductor-patent-activity","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2023\/05\/16\/china-dominates-semiconductor-patent-activity\/","title":{"rendered":"China dominates semiconductor patent activity"},"content":{"rendered":"

By Peter Clarke Courtesy NewsIn.Asia<\/em><\/span><\/h2>\n\n\n

www.eenewseurope.com\/www.mathys-squire.com<\/a><\/p>\n\n\n\n

February 21:  There have been 69,190 global patents for semiconductors filed in the year to September 30, 2022, and 55 percent were filed by Chinese entities, according to Mathys & Squire, an intellectual property law firm.<\/p>\n\n\n\n

In contrast, the UK accounted for only 179 patents or 0.26 percent of the global total.<\/p>\n\n\n\n

The data compiled by the law firm reflects the growing significance of semiconductor technology to multiple geographic regions. The number of semiconductor patents has filed annually has increased by 59 percent from five years ago.<\/p>\n\n\n\n

China has been impacted over the last five years by export controls imposed by the United States and has put increased emphasis on innovation to reduce dependence on Western technologies.<\/p>\n\n\n\n

However, the largest individual filer of semiconductor patents was Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), which was responsible for 4,793 patents \u2013 7 percent of all patents worldwide.<\/p>\n\n\n\n

Some 18,223 of the patents filed in the last year \u2013 26 percent of the total \u2013 were filed in the United States. The top US filer was California-based Applied Materials Inc, with 209 patents, followed by SanDisk (50 patents) and IBM (49 patents).<\/p>\n\n\n\n

Governments are increasingly concerned about the fragility of global supply chains and are taking steps to promote semiconductor research and production domestically,\u201d said Edd Cavanna, managing associate at Mathys & Squire, in a statement.<\/p>\n\n\n\n

U.S. Sanctions Have Helped China Supercharge Its Chipmaking Industry<\/strong><\/p>\n\n\n\n

Bloomberg\u2019s report of June 21, 2022:<\/strong><\/p>\n\n\n\n

China\u2019s chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei Technologies Co. to Hikvision spurred appetite for home-grown components.<\/p>\n\n\n\n

Nineteen of the world\u2019s 20 fastest-growing chip industry firms over the past four quarters, on average, hail from the world\u2019s No. 2 economy, according to data compiled by Bloomberg. That compared with just 8 at the same point last year. Those China-based suppliers of design software, processors and gear vital to chipmaking are expanding revenue at several times the likes of global leaders Taiwan Semiconductor Manufacturing Co. or ASML Holding NV.<\/p>\n\n\n\n

That supercharged growth underscores how tensions between Washington and Beijing are transforming the global $550 billion semiconductor industry \u2014 a sector that plays an outsized role in everything from defense to the advent of future technologies like AI and autonomous cars. In 2020, the US began restricting sales of American technology to companies like Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology Co., successfully containing their growth \u2014 but also fueling a boom in Chinese chip-making and supply.<\/p>\n\n\n\n

While shares in the likes of Cambricon Technologies Corp. have more than doubled from lows this year, analysts say there may still be room to grow. Beijing is expected to orchestrate billions of dollars of investment in the sector under ambitious programs such as its Little Giants\u201d blueprint to endorse and bankroll national tech champions, and encourage buy China\u201d tactics to sidestep US sanctions. The rise of indigenous names has caught the attention of some of the pickiest clients: Apple Inc. was said to consider Yangtze Memory Technologies Co. as its latest supplier of iPhone flash memory.<\/p>\n\n\n\n

The biggest underlying trend is China\u2019s quest for self-sufficiency in the supply chain, catalyzed by Covid-related lockdowns,\u201d Morningstar analyst Phelix Lee wrote in an email responding to inquiries from Bloomberg News. Amid lockdowns, Chinese customers who mostly use imported semiconductors need to source homegrown alternatives to ensure smooth operations.\u201d<\/p>\n\n\n\n

A worker watches the operation of test equipment through an electronic screen at a production workshop of Chongqing Pingwei Industrial Co., LTD in Liangping High-tech Zone, Chongqing, China March 30, 2022. (Costfoto\/Future Publishing via Getty Images)<\/p>\n\n\n\n

A worker watches the operation of test equipment through an electronic screen at a production workshop of Chongqing Pingwei Industrial Co., LTD in Liangping High-tech Zone, Chongqing, China March 30, 2022. Costfoto\/Future Publishing via Getty Images<\/p>\n\n\n\n

At the heart of Beijing\u2019s ambitions is the impetus to wean itself off a geopolitical rival and more than $430 billion worth of imported chipsets in 2021. Orders for chip-manufacturing equipment from overseas suppliers rose 58% last year as local plants expanded capacity, data provided by industry body Semi show.<\/p>\n\n\n\n

That in turn is driving local business. Total sales from Chinese-based chipmakers and designers jumped 18% in 2021 to a record of more than 1 trillion yuan ($150 billion), according to the China Semiconductor Industry Association.<\/p>\n\n\n\n

A persistent chip shortage that\u2019s curtailing output at the world\u2019s largest makers of cars and consumer electronics is also working in local chipmakers\u2019 favor, helping Chinese suppliers more easily access the international market \u2014 sometimes with premiums tacked onto the best-selling products, such as auto and PC chips.<\/p>\n\n\n\n

SMIC and Hua Hong Semiconductor Ltd., the biggest contract chip makers, have kept their Shanghai-based plants operating at almost full capacity even as the worst Covid-19 outbreak since 2020 paralyzes factories and logistics across China. With local authorities\u2019 help, cargo flights from Japan delivered essential materials and gear to chip plants as the city went under lockdown. SMIC recently reported a 67% surge in quarterly sales, outpacing far larger rivals GlobalFoundries Inc. and TSMC.<\/p>\n\n\n\n

Shanghai Fullhan Microelectronics Co.\u2019s revenue grew 37% on average because of high demand for surveillance products. The video chip designer has pledged to expand into electric vehicles and AI after winning its Little Giant\u201d designation. And design tool developer Primarius Technologies Co. doubled sales on average over the past four quarters, saying it\u2019s developed software that can be used in making 3-nanometer chips.<\/p>\n\n\n\n

Putting aside long-term profitability concerns, Morningstar\u2019s Lee said the aggressive capacity build-up from Chinese players will elevate their presence globally.<\/p>\n\n\n\n

There\u2019s little doubt Chinese chipmakers can achieve revenue growth over the next few years from cars, consumer electronics and other devices,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Peter Clarke Courtesy NewsIn.Asia www.eenewseurope.com\/www.mathys-squire.com February 21:  There have been 69,190 global patents for semiconductors filed in the year to September 30, 2022, and 55 percent were filed by Chinese entities, according to Mathys & Squire, an intellectual property law firm. In contrast, the UK accounted for only 179 patents or 0.26 percent of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158],"tags":[],"class_list":["post-134388","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/134388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=134388"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/134388\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=134388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=134388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=134388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}