{"id":16288,"date":"2025-06-18T06:41:00","date_gmt":"2025-06-18T06:41:00","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=16288"},"modified":"2025-06-26T08:49:49","modified_gmt":"2025-06-26T08:49:49","slug":"chinas-semiconductor-sector","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/chinas-semiconductor-sector\/","title":{"rendered":"China’s Semiconductor Sector"},"content":{"rendered":"\n

China\u2019s semiconductor industry is rapidly advancing, driven by state-backed initiatives and domestic innovation<\/strong><\/h2>\n\n\n\n

China\u2019s semiconductor sector has emerged as a cornerstone of its technological ambition, propelled by significant government investment and a strategic push for self-sufficiency. In 2024, the industry was valued at \u00a3134.2 billion, with projections indicating a compound annual growth rate (CAGR) of 7.8% from 2025 to 2034, potentially reaching \u00a3283.7 billion by 2034. This growth reflects China\u2019s determination to reduce reliance on foreign chips, which accounted for 83% of its \u00a3185.5 billion chip consumption in 2020, and to establish itself as a global leader in semiconductor innovation. The sector\u2019s rapid development, driven by advancements in artificial intelligence<\/a> (AI), 5G, and electric vehicles<\/a> (EVs), positions China at the forefront of the global tech race, though geopolitical<\/a> tensions and technological gaps present significant challenges.<\/p>\n\n\n\n

China\u2019s semiconductor industry began in earnest during the 1980s, with early efforts like Project 908 and Project 909 aimed at building domestic capabilities. These initiatives, including partnerships with foreign firms like NEC, faced setbacks due to outdated technologies and global market downturns. A pivotal shift occurred in 2014 with the National Integrated Circuit (IC) Industry Investment Fund, or \u201cBig Fund,\u201d which injected \u00a317.6 billion initially, followed by \u00a323.3 billion in 2019 and \u00a336.8 billion in 2023. The \u201cMade in China 2025<\/a>\u201d strategy set ambitious targets of 40% self-sufficiency by 2020 and 70% by 2025, though the actual figure reached only 30% by 2025, underscoring the complexity of achieving technological autonomy. Despite this, China\u2019s 53.7% share of global chip consumption in 2020 highlights its position as the world\u2019s largest semiconductor market.<\/p>\n\n\n

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Key players dominate China\u2019s semiconductor landscape. Semiconductor Manufacturing International Corporation (SMIC), the country\u2019s largest foundry, reported \u00a39.77 billion in revenue in Q1 2024, a 19.7% year-on-year increase, making it the world\u2019s second-largest pure-play foundry behind Taiwan\u2019s TSMC. SMIC\u2019s production of 7-nanometer chips, such as the Kirin 9000S for Huawei\u2019s Mate 60 Pro, demonstrates its ability to innovate despite U.S. export controls. \u201cSMIC is at most only a few years behind Intel and Samsung,\u201d noted industry analyst Dylan Patel, highlighting its progress in advanced node manufacturing. Hua Hong Semiconductor, the second-largest Chinese chipmaker, holds a 2.6% global market share, focusing on mature node chips. HiSilicon, a Huawei subsidiary, designs advanced chips like the Kirin series, while Yangtze Memory Technologies Corporation (YMTC) has achieved a 5% global market share in NAND flash memory, with plans to surpass 10% by 2027. Other notable firms include Hygon Information Technology, producing x86-based CPUs, and Loongson Technology, developing MIPS-compatible microprocessors for domestic applications.<\/p>\n\n\n\n