China’s semiconductor industry is experiencing rapid expansion, with a growing emphasis on self-sufficiency. GigaGins reported on Friday that the sector is advancing swiftly, fueled by strategic investments and increasing efforts to reduce reliance on foreign technology.
According to TechInsights, SMIC, China’s leading semiconductor foundry and the world’s second-largest, has seen its market value double in just two months. China’s semiconductor self-sufficiency rate, only 14% in 2014, is expected to rise to 23% this year and reach 27% by 2027.
The report also forecasts a 40% increase in China’s semiconductor production capacity over the next five years, driven by substantial investments in chip manufacturing facilities.
Despite SMIC’s rapid growth and significant government support for semiconductor independence, China remains behind Western nations in cutting-edge chip development due to U.S. restrictions. These limitations have shifted China’s focus toward producing legacy chips for appliances and automobiles rather than advanced chips needed for artificial intelligence (AI) and other high-performance applications.
China’s semiconductor production capacity is poised for considerable growth, particularly in 12-inch wafer fabrication plants. TechInsights analysts predict this expansion will profoundly impact the global semiconductor market, influencing pricing strategies and trade policies in the years to come.
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