China Analog IC Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.32 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Analog IC Market Analysis
The Chinese analog IC market was valued at USD 34.61 billion in the previous year. It is expected to register a CAGR of 8.32% during the forecast period to reach USD 56.89 billion. The rising cloud adoption, increasing availability of high-speed connectivity, and growing adoption of IoT devices have propelled the demand for analog IC in China.
- The growing urbanization and increasing population growth rate in China have significantly driven the demand for analog IC. According to the National Bureau of Statistics of China, about 64.72% of the population stays in urban areas, which the government plans to take beyond 65% by 2025. This factor is driving investment in smart cities, buildings, electronics, and advanced solutions, further leveraging the demand for the analog IC market.
- The country is also among the largest manufacturers and consumers of consumer electronic products. According to the data provided by China Customs, China exported approximately USD 3.36 trillion worth of goods in 2021, reporting a growth export value of about 30% compared to the previous year. As consumer electronics and other electrical products constitute a significant portion of the export value, the studied market is expected to witness sustained growth in the country.
- According to the National Bureau of Statistics of China, the total retail sale of consumer goods in the country increased from CNY 39.2 trillion to CNY 44.1 trillion. Such trends also create a favorable market scenario for the growth of the market in China.
- The leading semiconductor manufacturers in the country are also taking the initiative to expand their footprint in the analog IC industry. For instance, in September 2022, Semiconductor Manufacturing International Corporation (SMIC) announced the official inauguration of Ningbo Semiconductor International Corporation, jointly established by China IC Capital (a wholly owned investment fund of SMIC), Hua Capital, and Ningbo SensonElectronics. The joint venture will focus on developing analog and specialty semiconductor technology platforms in high-voltage analog, optoelectronics, and radio frequency.
- The demand for analog IC in China will likely be hampered during the forecast period due to the increasing design complexity of analog IC. Analog design is more difficult than digital. It requires more knowledge and factors to consider, such as a deep understanding of efficient power, precision measurement, wireless connectivity, and reliable circuit protection, further impacting the market's growth.
- The pandemic significantly impacted the country's production of integrated circuits. In April 2022, China's monthly output of chips shrunk to its lowest level since 2020, as strict lockdowns in Shanghai and other cities disrupted production in downstream industries from cars to robotics. According to the National Bureau of Statistics, the output of integrated circuits in April declined 12.1% Y-o-Y to 25.9 billion units, the lowest since December 2020.
China Analog IC Market Trends
Growing Adoption of 5G Technology to Boost Market Demand
- The growing penetration of 5G technology is driving the demand for 5G-enabled smartphones and supporting the digitization of other industries. The high-speed data connectivity facilitated by 5G is expected to positively impact industrial automation and the adoption of advanced technologies such as AI, IoT, etc. As a broad range of electronic devices is used to establish such infrastructure, the demand for analog circuits is also expected to grow. The growing shipments of 5G cellphone handsets and the infrastructure to support them are key factors contributing to the demand for analog ICs.
- The increasing deployment of 5G connectivity in China is also driving the incorporation of connected car features in vehicles, thus supporting the market's growth. For instance, according to the Ministry of Industry and Information Technology (MIIT), China aims to have 2 million installed 5G base stations in 2022 to expand the country's next-generation mobile network. The Chinese mainland currently has 1.425 million installed 5G base stations that support more than 500 million 5G users nationwide, making it the biggest network in the world, as per MIIT.
- The government of China plans to prioritize the development of 5G and aims to make significant progress in digitalization by 2025. For instance, in February 2023, the country issued a plan calling for accelerated development of 5G, data centers, IoT, and supercomputing technologies.
- Data resources and digital infrastructure are the main foundations of China's plan. China also aims to promote the digital transition of its economy, society, culture, governance, and business sectors, while strengthening digital innovation and security.
Automotive Sector is Expected to Hold Significant Market Share
- The automotive industry is another major sector wherein the demand for analog IC is expected to grow further as the industry has been reporting continuous growth over the last few decades. Automobile manufacturers such as BYD, FAW Group, and SAIC Motor have been dominating the automotive industry for quite some time now. During the forecast period, they are expected to hold a notable market share in the global automotive industry.
- Over the years, China has established itself among the major automobile manufacturers in the world. In recent years, a trend has been observed wherein automobile manufacturers have started to focus more on electric mobility solutions that positively impact the demand for analog IC, considering their broad use cases in electric vehicles, especially in the infotainment and ADAS system.
- High penetration of semiconductor devices in automotive systems, due to the increased use of electronics in fuel efficiency, safety, emission reduction, navigation, and entertainment systems, is expected to boost the demand for analog ICs. Analog ICs significantly enhance the performance of automotive infotainment systems.
- According to the International Council on Clean Transportation (ICCT), throughout the first six months of 2022, electric vehicles in China constituted almost one-fourth of all new passenger car registrations, with PHEVs accounting for 5% and BEVs for 19%.
- The government is also taking several initiatives to stimulate the growth of the Chinese automotive industry. For instance, in September 2022, the State Taxation Administration (STA), the Ministry of Finance (MOF), and the Ministry of Industry and Information Technology (MIIT) jointly announced the continuation of tax exemptions on purchases of new energy vehicles. Hence, with EV sales expected to sustain a similar growth pattern, the demand for analog IC across the country's automotive industry is also expected to grow further during the forecast period. Volkswagen invested USD 18.3 billion in the Chinese market by the end of 2022, including the manufacturing of e-mobility and autonomous vehicles.
China Analog IC Industry Overview
The competition in the Chinese analog integrated circuit (IC) market is anticipated to grow moderately during the forecast period. Manufacturers compete based on product innovation and technology differentiation. Many companies are increasingly investing in developing analog ICs to gain the first-mover advantage and a competitive edge. The key players in the market are Analog Devices Inc., Infineon Technologies AG, Microchip Technology Inc., etc.
- August 2022: NXP Semiconductors announced strong customer engagements for its entire S32 family of the domain and zonal automotive processors, including a major automotive OEM's selection of NXP's S32 family of automotive processors and microcontrollers to be used across its fleet of future vehicles, beginning mid-decade.
- July 2022: Qorvo announced seven 750V silicon carbide (SiC) FETs in the surface mount D2PAK-7L package. With this package option, Qorvo's SiC FETs are tailored for the rapidly growing applications of onboard chargers, soft-switched DC/DC converters, battery charging (fast DC and industrial), and IT/server power supplies. They provide an ideal solution for high-power applications that require low conduction losses, maximum efficiency, and excellent cost-effectiveness in a thermally enhanced package.
China Analog IC Market Leaders
Infineon Technologies AG
NXP Semiconductor BV
Texas Instruments Incorporated
Microchip Technology Inc.
Analog Device Inc.
*Disclaimer: Major Players sorted in no particular order
China Analog IC Market News
- March 2022: Analog Devices Inc. announced the introduction of a millimeter wave (mmW) 5G front-end chipset that addresses required frequency bands and enables designers to reduce complexity and bring smaller and more versatile radios to market faster. The chipset comprises four highly integrated ICs and provides a complete solution to significantly reduce the number of components needed for 24 to 47GHz 5G radios.
- April 2022: Infineon Technologies introduced two new battery management ICs, TLE9012DQU and TLE9015DQU. The integrated circuits allow an optimal solution for battery cell monitoring and balancing. The new battery management ICs provide a competitive system-level solution for battery modules, cell-to-pack, and cell-to-car battery topologies, combining exceptional measurement performance with the highest application robustness. The devices are appropriate for a wide range of industrial, consumer, and automotive applications, including mild hybrid electric vehicles (MHEV), hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery-powered electric cars.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The Growing Telecommunication Industry and Rising Adoption of 5G
5.2 Market Challenges
5.2.1 Increasing Design Complexity of Analog IC
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 General-purpose IC
6.1.1.1 Interface
6.1.1.2 Power Management
6.1.1.3 Signal Conversion
6.1.1.4 Amplifiers/Comparators
6.1.2 Application-specific IC
6.1.2.1 Consumer
6.1.2.1.1 Audio/Video
6.1.2.1.2 Digital Still Camera and Camcorder
6.1.2.1.3 Other Consumers
6.1.2.2 Automotive
6.1.2.2.1 Infotainment
6.1.2.2.2 Other Infotainment
6.1.2.3 Communication
6.1.2.3.1 Cell Phone
6.1.2.3.2 Infrastructure
6.1.2.3.3 Wired Communication
6.1.2.3.4 Short Range
6.1.2.3.5 Other Wireless
6.1.2.4 Computer
6.1.2.4.1 Computer System and Display
6.1.2.4.2 Computer Periphery
6.1.2.4.3 Storage
6.1.2.4.4 Other Computers
6.1.2.5 Industrial and Others
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Device Inc.
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 NXP Semiconductors NV
7.1.5 ON Semiconductor
7.1.6 Richtek Technology Corporation (MediaTek Inc.)
7.1.7 STMicroelectronics NV
7.1.8 Skywork Solutions Inc.
7.1.9 Renesas Electronic Corporation
7.1.10 Texas Instruments Incorporated
7.1.11 Qorvo Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
China Analog IC Industry Segmentation
An analog IC is an essential component in most electronic devices. It involves an output signal that follows a continuous input signal. It is used when there is a need for higher power applications and wideband signals and typically enjoys a far longer useful life than digital devices.
The market study comprises two types, such as general-purpose IC and application-specific IC, providing end-user solutions for consumer electronics, automotive, communication, and industrial. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, supporting the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
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Frequently Asked Questions
What is the current China Analog IC Market size?
The China Analog IC Market is projected to register a CAGR of 8.32% during the forecast period (2024-2029)
Who are the key players in China Analog IC Market?
Infineon Technologies AG, NXP Semiconductor BV, Texas Instruments Incorporated, Microchip Technology Inc. and Analog Device Inc. are the major companies operating in the China Analog IC Market.
What years does this China Analog IC Market cover?
The report covers the China Analog IC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Analog IC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Analog IC Industry Report
Statistics for the 2024 China Analog IC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Analog IC analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
