Home NEWS China’s locally produced integrated circuits (IC) will represent only 19.4% of its IC market in 2025

China’s locally produced integrated circuits (IC) will represent only 19.4% of its IC market in 2025

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According to TheElec report,Last year, China-produced ICs accounted for 15.9% of the country’s IC market worth US$143.4 billion, up from 10.2% in 2010.

However, of the US$22.7 billion worth of ICs manufactured in China last year, China-headquartered companies produced only US$8.3 billion (36.5%), accounting for only 5.9% of the country’s US$143.4 billion IC market.

There rest were produced by foreign companies such as TSMC, SK Hynix, Samsung, Intel, UMC and others with IC wafer fabs located in China.

IC Insights said it estimates that of the US$8.3 billion in ICs manufactured by China-based companies, about US$2.3 billion was from integrated device manufacturers and US$6.0 billion was from pure-play foundries like SMIC.

If China-based IC manufacturing rises to US$43.2 billion in 2025 as IC Insights forecasts, China-based IC production would still represent only 7.5% of the total forecasted 2025 worldwide IC market of US$577.9 billion., the market research firm said.

China announced its Made in China 2025 goal back in 2015 and announced that it would fund semiconductor projects in the country to secure core technology and produce chips on its own. The goal set then was to have locally produced semiconductors to account for 40% of its market and 70% by 2025.
US sanctions against China has dented this goal. In May, US imposed trade restrictions on Huawei that required companies supplying the Chinese tech giant with goods made with US technology to gain the approval from the Department of Commerce. SMIC was added to US’ Entity List in December.

Surge is the Founder of Hms Arena.he lives in China and knows about China's mobile phone market.
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