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Semiconductor industry in China
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Semiconductor industry in China
The Chinese semiconductor industry, including integrated circuit design and manufacturing, forms a major part of mainland China's electric technology industry.
China's semiconductor industry consists of a wide variety of companies, from integrated device manufacturers to pure-play foundries, fabless semiconductor companies and OSAT companies. Integrated device manufacturers (IDMs) design and manufacture integrated circuits. Pure-play foundries only manufacture devices for other companies, without designing them, while fabless semiconductor companies only design devices. Examples of Chinese IDMs are YMTC and CXMT, examples of Chinese pure-play foundries are SMIC, Hua Hong Semiconductor and Wingtech, examples of Chinese fabless companies are Zhaoxin, HiSilicon, Loongson and UNISOC, and examples of Chinese OSAT companies are JCET, Huatian Technology and Tongfu Microelectronics.
China is currently the world's largest semiconductor market in terms of consumption. In 2020, China represented 53.7% of worldwide chip sales, or $239.45 billion out of $446.1 billion. However, a large percentage are imported from multinational suppliers. In 2020, imports took up over 83% ($199.7 billion) of total chip sales. In response, the country launched a number of initiatives to reduce its reliance on foreign companies. To reduce reliance on foreign semiconductor companies, CICF pools resources from state investors including the Ministry of Finance, China Tobacco, China Mobile, and China Development Bank.
In 2022, the country announced a Made in China 2025 goal of 70% domestic production.
China leads the world in terms of number of new fabs under construction, with 8 out of 19 worldwide in 2021. A total of 17 fabs were expected to start construction between 2021 and 2023. Total installed capacity of Chinese-owned chipmakers was also set to increase from 2.96 million wafers per month (wpm) in 2020 to 3.57 million wpm in 2021.
In 2025, Morgan Stanley estimated that China had a 41% self-sufficiency ratio in AI chips, up from 10% in 2020, with the number expected to increase to 86% by 2030.
The semiconductor industry in China began between a period in 1956, along with the country's first transistor produced in a state lab. In 1965, China created their first integrated circuit. From 1956 to 1990, the industry followed a Soviet-style system of industrial organization. China's State Council prioritized semiconductor technology in its "Outline for Science and Technology Development, 1956–1967," leading to the establishment of semiconductor-related degree programs in five major universities. The Huajing Group's Wuxi Factory No. 742, operational from 1960, played a crucial role in training industry experts and supporting subsequent industrial strategies.
In the mid-1960s through the late 1960s, China began a semiconductor program.
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Semiconductor industry in China
The Chinese semiconductor industry, including integrated circuit design and manufacturing, forms a major part of mainland China's electric technology industry.
China's semiconductor industry consists of a wide variety of companies, from integrated device manufacturers to pure-play foundries, fabless semiconductor companies and OSAT companies. Integrated device manufacturers (IDMs) design and manufacture integrated circuits. Pure-play foundries only manufacture devices for other companies, without designing them, while fabless semiconductor companies only design devices. Examples of Chinese IDMs are YMTC and CXMT, examples of Chinese pure-play foundries are SMIC, Hua Hong Semiconductor and Wingtech, examples of Chinese fabless companies are Zhaoxin, HiSilicon, Loongson and UNISOC, and examples of Chinese OSAT companies are JCET, Huatian Technology and Tongfu Microelectronics.
China is currently the world's largest semiconductor market in terms of consumption. In 2020, China represented 53.7% of worldwide chip sales, or $239.45 billion out of $446.1 billion. However, a large percentage are imported from multinational suppliers. In 2020, imports took up over 83% ($199.7 billion) of total chip sales. In response, the country launched a number of initiatives to reduce its reliance on foreign companies. To reduce reliance on foreign semiconductor companies, CICF pools resources from state investors including the Ministry of Finance, China Tobacco, China Mobile, and China Development Bank.
In 2022, the country announced a Made in China 2025 goal of 70% domestic production.
China leads the world in terms of number of new fabs under construction, with 8 out of 19 worldwide in 2021. A total of 17 fabs were expected to start construction between 2021 and 2023. Total installed capacity of Chinese-owned chipmakers was also set to increase from 2.96 million wafers per month (wpm) in 2020 to 3.57 million wpm in 2021.
In 2025, Morgan Stanley estimated that China had a 41% self-sufficiency ratio in AI chips, up from 10% in 2020, with the number expected to increase to 86% by 2030.
The semiconductor industry in China began between a period in 1956, along with the country's first transistor produced in a state lab. In 1965, China created their first integrated circuit. From 1956 to 1990, the industry followed a Soviet-style system of industrial organization. China's State Council prioritized semiconductor technology in its "Outline for Science and Technology Development, 1956–1967," leading to the establishment of semiconductor-related degree programs in five major universities. The Huajing Group's Wuxi Factory No. 742, operational from 1960, played a crucial role in training industry experts and supporting subsequent industrial strategies.
In the mid-1960s through the late 1960s, China began a semiconductor program.