Speaking of China's semiconductor industry, people have no feeling but heart-broken. ANBOUND think tank scholars state that viewing its real development situation, domestic semiconductor industry seems to be trapped into a cycle: its industrial technology performance can’t reach international standard, which makes it hard for the semiconductor industry to develop independently in a fully market-oriented approach; despite the country’s willingness in source investment, large amount of subsidies and preferential loans from the government are unable to be internalized into enterprises’ own competitive capacity. In terms of global competition, China’s semiconductor industry is still weak so that we should remain calm in its development prospects.