Industrial cluster of electronic information

As international capital was concentrating on the Yangtze River delta and international electronic information industry was transferring to our country in recent years, the radiation and exemplary role of electronic information industrial area adjacent to Shanghai and Nanjing had been kept increasing and the electronic information industry of Yangzhou had also been kept developing, and become one of the industries with vigorous energy and fastest growth speed.

1. Analysis on the existing situation of Yangzhou electronic information industry

In 2003, there were 42 electronic information enterprises with a certain scale and gross industrial output value of RMB 2.6 billion (at current prices). Yangzhou had effectively promoted the competitiveness of its electronic information industry through the means of strengthening business invitation and capital attraction, insisting on technological transformation and technology import and combining the advantages of industries, universities and research institutes. Up to now, Yangzhou had established a characteristic industrial and products cluster, in which there were software and chip fabrication, new-type electronic components, communication equipments and digital audio-visual equipments.

1) Chip manufacturing

There are more than 10 enterprises engaged in the production of various chips and package with registered capital of over RMB 1 billion and gross industrial output value of RMB 0.3 billion in 2003. Yangzhou had built up various product lines with the capacity of 30,000 3-inch chips per month, 100,000 4-inch chips per month, 80,000 5-inch chips per month and 30,000 6-inch chips per month. The product line of 8-inch chips is under construction. Yangzhou had owned a full-circle productive capacity of 3-inch chips to 8-inch chips.

Ⅰ . Yangzhou Jingxin Micro-electronics Co., Ltd., a joint venture established by Yangzhou Jinglai Group and Japan International Electronic Business Corporation, has registered capital of US$ 29.63 million ( Japan accounts for 79.6%). It had imported from Japan two semiconductor production lines, respectively having the productive capacity of 100,000 4-inch chips per month and 80,000 5-inch chips per month. The total investment cost was US$ 50 million.

Ⅱ . Yangzhou Jingxin Semiconductor Co., Ltd., a joint venture established by Janpan International Business Corporation and Yangzhou Economic Dispatch Parent Company, has the registered capital of US$ 50 million ( Japan accounts for 88%). The total investment cost of the project is US$ 150 million and the product line with the productive capacity of 30,000 6-inch chips per month will be built.

Ⅲ . Yangzhou Jinglai Semiconductor Group. It has three product lines of 3-inch silicon slices with the productive capacity of over 20,000 silicon slices per month. Its products include low frequency and high power transistors, power darlington transistors, power switching transistors, linear integrated circuit, static induction transistors, high power thyristors and diodes. The market share of its products is 35 － 40 ％ and the products are widely approved by famous manufacturers in the world.

Ⅳ . Yangzhou Jinghui Electronics Co., Ltd., established by Yangzhou Jinglai Electronics Co., Ltd. and Hanjiang Transistor Factory, is a manufacturing enterprise engaged in the package of chip devices. It has TO-92 package capacity of 100,000,000 devices per year, TO-126 20,000,000 per year and SOT-23 100,000,000 per year.

Ⅴ . Yangzhou Jingshi High Technology Co., Ltd. is a private high technology enterprise engaged in the production of chip discrete devices. It had a product line with productive capacity of 80,000 4-inch chips per month.

Ⅵ . Hanjiang Jiuxing Electronics Co., Ltd. has productive capacity of 340,000,000 transistors per year.

Ⅶ . Yangzhou Mingyang Weidian Science and Technology Co., Ltd., a foreign-owned enterprise, settled in Yangzhou Economic Development Zone in 2003. The 6-inch chip project is under construction with total investment cost of RMB 0.25 billion.

Ⅷ . PRIMA Micro-Electronics ( Yangzhou ) Co., Ltd., a foreign-owned enterprise, has registered capital of US$ 30 million. The 8-inch chip project is planed to implemented with total investment cost of RMB 0.85 billion.

Ⅸ . Huaxia Integrated Photoelectricity ( Yangzhou ) Co., Ltd., a foreign-owned enterprise, settled in Yangzhou Economic Development Zone in 2003 with registered capital of US$ 20 million. F-P laser unit chip project is under construction and the total investment cost of the first phase project is RMB 0.25 billion.

Ⅹ . Yangzhou Hongyang Electronics Co., Ltd., an enterprise exclusively with investment form Taiwan , had achieved gross Industrial output value of RMB 84 million (at current prices) in 2003. it has the product capacity of 61 million bridge rectifiers per year and 3.7 billion diodes per year. It has also produced bridge series chips with high stability by adopting GPRC/GPP CMOS design.

2) Electronic component

With a long history and years of development, the electronic component industry of Yangzhou had a series of characteristic products such as semiconductor power devices, ceramic filters and sensors. By the end of 2003, there were over 50 enterprises engaged in the production of electronic components with output value of RMB 1.5 billion and 5000 employees.

Ⅰ . Yangzhou Jinglai Group is a domestic manufacturing enterprise especially engaged in the production of power devices. DK series power tubes enjoy a high reputation throughout the county, and the newly developed products such as small signal amplifier tubes, low current controlled silicon and Schottky diodes are undersupplyied.

Ⅱ . Jiangsu Jiangjia Group is specially engaged in the production of ceramic filter. Its microminiature and lamellar filters reach the level of similar products of Japan Murata Company in the 1990s.

Ⅲ . Texas Instruments ( China ) Co., Ltd., solely-funded by Texas Instrument Incorporation, is the largest base for the production of thermal protection devices and transistors.

Ⅳ . Jiangsu Liangneng Electronics Co., Ltd. is mainly engaged in the production of piezoelectric acceleration sensor, strain gage, dynamic and static strain meter, charge amplifier, filter, actuating system, piezoelectric ceramic materials and components.

Ⅴ . Huadu Electronics Incorporation is mainly engaged in the production of minitype electronic components and computer monitoring system. 95% of its products are sold to foreign countries, especially Europe , America and Japan .

Ⅵ . Keruier Science and Technology ( Yangzhou ) Co., Ltd. is mainly engaged in the production of electronic sensors.

3) Communication equipment

Main communication equipments include identification of friend or foe, intellectual IC card telephone, intellectual public telephone system, circuit automatic check system, mobile communication end and communication power on vehicles. By the end of 2003, there were 5 scale production enterprises with output value of RMB 0.9 billion.

Ⅰ . Yangzhou Baojun Radio Factory is mainly engaged in the scientific research and production of war industrial products such as identification of friend or foe

Ⅱ . Yangzhou Henchun Electronics Co., Ltd. is a high technology Group Company engaged in the development, production and sale of software and electronic communication products. It has research centers in Nanjing and Shanghai . Main products include intellectual IC card telephone, PAS wireless public telephone, intellectual public system, circuit automatic check system, intellectual call fee display telephone and intellectual electric actuator.

Ⅲ . Yangzhou Zhongxing Mobile Communication Equipment Co., Ltd., established by Zhongxing Communication Co., Ltd. (Stock Code: 000063) in 2003, is a high technology manufacturer engaged in the research, development, production and sale of mobile communication ends.

Ⅳ . Jiangsu Shuguang Optic Electronic Appliance Factory, a leading enterprise directly under China North Industries Group Corporation, is research and production base with an integration of light, machine and electronic, giving priority to the production of modern optical instrument, laser instrument, special purpose computer and precision instrument.

Ⅴ . Yangzhou Communication Equipment Main Factory is an enterprise specially engaged in the production of communication power on vehicles and 140 kinds of equipments.

4) Digital audio-visual products

Yangzhou had preliminarily formed its digital audio-visual equipment industry in the development zone through the means of business invitation and capital attraction. Main products include TFT-LCD, display on vehicles, duplication of read-only disc and mother disc labeling. There were 3 production enterprises with output value of RMB 0.3 billion in 2003.

Ⅰ . Chuanqi Opticalelectronic Technology Park . It is mainly engaged in the production of audio-visual equipments (including digital camera, digital record player, television for vehicles and GPS), office automation equipments (including mini notebook PC, industrial equipments) and internet application products (including internet pace plate, network screen telephone and hand-held terminal ).

Shuanqi Opticalelectronic Technology (Yangzhou) Co., Ltd., solely funded by Yuantai Technology Co., Ltd. directly under Yongfengyu Group (the largest public paper company in Taiwan) in May, 2002, is a high technology enterprise mainly engaged in the production and sale of various medium or small sized new-type plat panel LCD (2.5-inch to 10.4-inch TFT-LCD). It has registered capital of US$ 31.3 million and total investment cost of US$ 90.5 million. Up to now, it has the productive capacity of 125000 displays per month.

Jiangsu Shangyang Electronic Technology Co., Ltd., jointly funded by Taiwan Yuantai Techonoly Co., Ltd., Inttek Technology Company and Jiangsu Yaxing Passenger Car Group, is a complementary enterprise of Shuanqi Opticalelectronic Technology ( Yangzhou ) Co., Ltd. With total investment cost of US$ 10 million and registered capital of US$ 5 million, it is mainly engaged in the production of plat panel LCD.

Ⅱ . Yangzhou Guangde Information Co., Ltd. is a professional enterprise engaged in the duplication of read-only disc and mother disc labeling. With total investment cost of RMB 70 million and annual productive capacity of over 30,000 discs, it has the most advanced CD 、 VCD/DVD mother disc labeling product line. The 4 advanced product lines had the capacity of duplicating over 70 million various discs (such as CD, VCD, S-VCD, CD-ROM, DVD-AUDIO and DVD-5) for customers each year.

5) Software industry

There are a group of widely approved brand enterprises such as Daziran (engaged in developing 110 Command System), Fangzhou Technology (engaged in taxation administration declare), Hengchen Technology (engaged in LF2000 circuit check and the production of intellectual IC telephone), Yongxin Computer (engaged in telecom material management and developing comprehensive budgetary system), Jingzhun Agricultural Technology (engaged in farmland resources management). By the end of 2003, there is one enterprise holding the National Grade 3 Computer Information System Integration Qualification Certificate, 7 enterprises holding the Software Enterprise Certificate awarded by Information Industry Department of the province, 18 kinds of products holding the Software Products Certificate. Their sales value was RMB 54 million.

2. Analysis on the advantages of the development of Yangzhou electronic information industry

Yangzhou has many advantages in quickening the development of electronic information industry. As far as the geographical environment is concerned, located in the Yangtse River delta and the interjunction area of Nanjing and Shanghai economic zone, Yangzhou enjoys a unique geographical advantage; Yangzhou takes the lead in Jiangsu province by accomplishing the construction of highway around the city, and makes it possible for highway transportation from a county to another. With the traffic opening of Ning-Qi railway and the establishment of Runyang Bridge, Yangzhou has formed a great traffic structure with highway and railway network extended in all directions, thus enjoyed a nice traffic advantage; with relatively perfect infrastructure of electricity, tap water, sewage treatment, telecommunication and harbor, Yangzhou enjoys resources superiority. From the perspective of developing electronic information industry, Yangzhou enjoys the following advantages:

1) Advantage of policy. City Party committee and government of Yangzhou attach much importance to the economic development and the improvement of investment environment, and keep strengthening business invitation and capital attraction with the aim to the build an environment of stressing on business. Owing to its geographical and cultural advantages, plentiful talents and perfect local laws, Yangzhou was ranked in the front of mainland investment cities recommended by Taiwas Electric Machine and Electronic Industry Union in its newest evaluation and analysis report on investment environment and risk of mainland cities.

In order to develop our electronic information industry, Yangzhou had planned to build an electronic information park in the development zone with building area of 3.3 square meters. A group of enterprises such as Jingxin Micro-Electronics, Huaxia Integrated Photoelectricity, Shuanqi Opticalelectronic, Keruier Technology, Zhongxing Technology had settled in the park. Characteristic industries such as chip manufacturing and digital audio-visual equipments had emerged. Meanwhile, based on the construction achievements of national informatization experimental city, Yangzhou had quickened its steps in building Yangzhou Software Park with 3S industrialization and digital games as its characteristics.

2) Sound complementary advantages in the regions around. Owing to the transfer of international capital and the industry in recent years, the industrial belt of electronic information had been formed with a length of about 200 kilometers along the area between kunshan, Nanjing and Shanghai . With obvious competitive advantage, the industrial belt had established five industrial chains (mobile and satellite communication, photoelectron, micro-electronics and computer, network equipment and software) and become an important processing and export base of information products in the world. The electronic information industry of Yangzhou will benefit from the industrial belt.

3) Solid local basis of electronic industry. With a long history in electronic component industry, Yangzhou had owned a series of characteristic products such as semiconductor power device, ceramic filter and sensor. It also had a group of industrial workers with high cultural quality and skills. Through the business invitation and capital attraction in recent years, Yangzhou had formed its characteristics in chip manufacturing, communication equipment manufacturing and digital audio-visual products manufacturing, thus laid a sound foundation for the industrial development and cluster in the next stage.

4) Abundant human resources. There are 36 colleges and universities and 137 scientific institutions in Nanjing , Yangzhou and Zhenjiang , a colleges and universities dense region. With its solid scientific and technological strength, it is competent for the development, design and manufacturing of electronic information products. Electronic vocational schools in Yangzhou provide a lot of professional talents and skilled workers with high quality and low price of labor power.

3. Developing strategy of Yangzhou electronic information cluster

1) Guiding ideology of industrial development

Concentrate on the general developing objective of national information industry; seize the historical opportunity that national electronic information industry has been quickly developed; take the construction of national informatization experimental city as a chance; take the market as orientation; take the capital as the link; strength the adjustment of enterprise structure, technological structure and product structure; vigorously push the development of our electronic information and software industry forward.

2) Developing objective

With the efforts of 5 to 10 years, the connecting and complementary chain of chip fabrication, new-type electronic component, communication equipment and digital audio-visual equipment manufacturing will be preliminarily established. The development of characteristic software industries such as 3S and digital art has been accelerated. In 2010, the total output value of the electronic information industry will be RMB 15 billion (at current prices).

3) Industrial distribution

Electronic Information Park of Yangzhou economic development zone will focus on developing chip manufacturing, new-type electronic component, communication products, digital audio-visual products and software base. Baoying will focus on developing the sensors of Texas Instrument. Gaoyou will focus on developing low pressure electrode foil. Jiangdu will focus on developing NC machine tool. Yizheng will focus on developing automobile electronic products.

4. Key points for the development of Yangzhou electronic information cluster

1) Electronic information manufacturing

Ⅰ . New-type electronic component and basic material products. With Jinglai Group and Yangguang Electronics as the leading enterprises, concentrate on developing chip semiconductor device, back end package of chip discrete device , chip capacitor and IGBT power electronic device. With Deyi Company, Lianneng Electronics and Keruier Technology as the leading enterprises, concentrate on developing various sensors, thermal protection device with the aim to build a largest base in China for the production of thermal protection devices and sensors. With Jiangjia Electronic as the leading enterprise, concentrate on developing saw device, ceramic filter and medium filter. With Shengda Group and Yangguang Industrial Inc. as the leading enterprises, concentrate on developing low pressure electrode foil and skin touch capacitor film.

Ⅱ . Chip fabrication and package. Based on the existing products, within 5 to 8 years and with the total investment cost of RMB 8 billion, Yangzhou will build an industrial base for chip fabrication with annual output value of over RMB 10 billion. The base will give priority to the 4-inch, 5-inch, 6-inch, 8-inch chips fabrication and back end package while forming upper and lower stream link with chip equipment manufacturing and product research. Its productive capacity: 100,000 4-inch chips per month (flat product line), 15,000 4-inch chips per month (table product line), 80,000 5-inch chips per month (flat product line), 30,000 6-inch chips per month, 30,000 8-inch chips per month. It will pack 1000 billion semiconductors per month. It will also establish a research center for the design and test of chips and focus on chip equipment manufacturing and maintenance.

Ⅲ . Communication products. With Shuguang Factory, Henchun Technology and Zhongxing Communication as the leading enterprises, concentrate on developing crypto, intellectual public telephone system, GSM/CDMA repeater, trunk amplifier, linear power amplifier, mobile communication telephone.

Ⅳ . Digital audio-visual products. With Guangde Information Company, Chuanqi Photoelectricity Company and Baojun Radio Factory as the leading enterprises, concentrate on the production of high density digital laser disk, LCD and teaching machine top box.

Ⅴ . Electronic products of war industry. With Baojin Communication Equipment General Factory and Shuguang Factory as the leading enterprises, concentrate on the production of interrogator, electronic equipment for naval vessels, communication power on vehicles and laser distance measuring instrument.

2) Software industry

Take the construction of national informatization experimental city as a chance; quicken the construction of Yangzhou Software Park based on the achievements of three electronic government projects of Yangzhou ; actively develop IC design software, embedded software; application software and system integration software; vigorously push forward the development of characteristic software industry such as 3S industrialization and digital games.

5. Countermeasures for the development of Yanghzou electronic information cluster

1) Vigorously push the park construction forward and realize the industrial cluster and function upgrading

Strengthen the planning and guiding for the development of parks; promote the integral image of Yangzhou electronic information industry; further enhance the clustering function of key parks such as Yangzhou Electronics Park and Software Park . There should be mutual competition as well as work division between various parks, thus avoiding excessive industrial duplication. It is required to urge parks to transfer from depending on policy advantage to depending on comprehensive environmental advantage. It is also required to focus on industrial characteristics and technology.

2) Strengthen the invitation of business and capital attraction with the aim to build a higher platform for the industrial cluster

Seize the opportunity of the laddered transfer of international electronic information industry, make full use of the excellent industrial environment, potential market and quality labor force in the regions along rivers, and strengthen the attraction for foreign capital. Seize the favorable opportunity of the capital of Taiwan , Japan and Korea moving westward and make a great effort in building a pro-business environment. Strengthen the capital attraction from the companies in Europe and America ; push the localization strategy for trans-national corporations forward; emphasize the flagship project and leading project of trans-national corporations with the aim to build a higher platform for the extension of industrial chain.

3) Further expand the channels for attracting private capital and vigorously develop individual and civilian economy

Further emancipate the mind and form the new idea; expand the channels for attracting private capital; lower the requirement for registered capital of medium or small sized enterprises in electronic information industry; introduce more private capital to the electronic information industry; vigorously support the development of private enterprises in electronic information industry; encourage and support the returned students after studying abroad to set up hi-tech private enterprise in electronic information industry; nurture a group of medium or small sized enterprises with flexible mechanism, specific division of work and strong market adaptability; introduce and support medium and small sized enterprises to provide complementary service for trans-national corporations with the aim to expand their industrial chains in China.

4) Push the technical innovation forward and continually strengthen the core competitiveness of the industry.

Continually boost enterprises to become the main subject of technical innovation; encourage enterprises to strengthen their investment on research and exploitation; establish technical innovation mechanism with market as orientation; implement the technical innovation project of enterprises; quicken the construction of the new technical innovation system in key enterprises and groups based on One Station and Two Centers; encourage enterprises to form the association of industries, universities and research institutes with the capital as the link; emphasize on attracting foreign-owned enterprises to build research and development centers in Yangzhou; strengthen the international cooperation on key scientific research projects; vigorously support domestic enterprises, research institutes, colleges and universities to establish research and development centers with foreign-owned enterprises; guide enterprises to emphasize on the issues concerning intellectual property, especially patents application and the protection of immaterial assets and intellectual property; concentrate on developing the commonness in electronic information industry and constructing key technical platform; develop the commonness of targeted industries such as embedded software and IC projects and the key technical platform.

5) Quicken steps in nurturing talented people and build talent highland.

Strengthen the attraction for talents in electronic information industry. Stipulate special and preferential policies to attract the returned students with rich experience and funds; make bold to go off the beaten track and provide the better working environment and living conditions for the domestic excellent talents with outstanding achievements, special talents holding key technology and urgently needed high level talents.

Improve the education and training quality for talents. Enlarge the scale of the education and training; based on the requirement of the quick development of electronic information industry, integrate the vocational training resources of education and labor departments, reform the talent. Reform the talent education mode; import advanced teaching materials and methods abroad; strengthen the occupational education and the training for skillful workers with the aim to provide sufficient labor for the development of our electronic information industry.

Make the talent incentive mechanism perfect. Create and set up distribution and incentive mechanism in favor of attracting hi-tech talents; strengthen the protection for intellectual property and regulate the market environment for fair competition with the aim to provide environment and policy insurance for the establishment and transfer of individual intellectual property. Stipulate relative policies and measures to encourage the elements of production such as capital and technology to participate in distribution; adopt incentive measures (such as giving option or performance stock) for technical talents with great contribution; actively encourage scientific and technical personnel to participate in distribution based on their intellectual property.