Mainland to set size of more than 120 billion yuan last year (more than NT $ 600 billion) fund to support the national semiconductor industry, the impact on Taiwan's starting to show, in addition to MediaTek bear the brunt of the new wave of "red supply chain" lock packaging and testing industry, market pay close attention to the impact on the ASE, SPIL and other industry players. National Semiconductor industry after China fund 筹组 completed last year, funds began to spread to the local industry chain, not only mobile phone chip plant exhibition purple parent company made news of government funds and bank financing total 30 billion yuan (more than NT $ 150 billion), the wafer foundry SMIC also received funding of more than NT $ million dollars. Continental series of investment action for the semiconductor industry, to assist the land-based semiconductor plant outward expansion, also gradually have an impact on the overall supply chain, in subsidy policy incentives, China's mobile phone chip packaging and testing plant are price and grab one, IC design houses also part of the order will be transferred to the mainland began packaging and testing plant. Taiwan IC design houses pointed out that land-based packaging and testing plant low-level beta yields gradually move up, and the government financial aid, offer quite sharp, the spread may even reach one percent, it has been gradually part of the low-order beta orders to Lu plant, in order to reduce costs, while maintaining official relations with the mainland and industrial chain. Market spread, including mainland China's mobile phone manufacturers Huawei Hass fab, as well as domestic and Netcom IC, MediaTek and other manufacturers, have been pulled in the proportion of land under a single system IC packaging and testing plant. The industry believes that this phenomenon is more obvious this year, but because of land-based packaging and testing plant temporarily is still mainly low-end packaging and testing, the first impulse will be to the current second-line packaging and testing plant. In addition to IC design houses to single land-based packaging and testing plant, the mobile phone chip plant Spreadtrum Ziguang Group and the parent company with government funding, this year in the mobile phone chip market to launch a price war, it has led to the first quarter bottom line 3G mobile phone chip prices fell below $ 5 , still far below the level of last year more than $ 7,8. Faced with China Mobile fab bargain grab one, MediaTek bear the brunt. MediaTek's first quarter net income per share fell below $ 5, dropping to lows eight seasons, season outlook is not as expected. The industry believes that the mainland foundry TSMC difficult to keep up with the short term, UMC standards, compared to the influence of the larger and IC packaging and testing designs.