China Integrated Circuit (IC) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.33 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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China Integrated Circuit (IC) Market Analysis
The China Integrated Circuit (IC) Market was valued at USD 148.21 billion in the previous year. It is expected to register a CAGR of 10.33%, reaching USD 256.70 billion over the forecast period. The region has emerged as a major manufacturing hub. China continues to account for a large and growing portion of new car shipments, which drives the IC market in China.
China is among the leading countries producing semiconductors and related devices and consumption. The government has witnessed a boom in the electronics industry, especially since the infamous trade dispute with the United States. Although the local IC design and manufacturing houses are still behind their international counterparts, the favorable industry regulations and increased focus of various industry stakeholders are expected to facilitate the industry's growth.
The automotive industry is among the leading demand drivers for ICs; the rapid growth of the new energy vehicle (NEV) in the domestic and international market and rising demand for semiconductor chips used in automotive electronics are promoting the development of the studied market. For instance, according to the China Association of Automobile Manufacturers (CAAM), around 2.9 million battery electric vehicles in 2021, an increase of 166 percent compared to 2020. In 2021, about 601,000 plug-in electric vehicles were produced in China.
The growth of the automotive industry is also expected to drive the demand for analog ICs, which in turn is encouraging IC manufacturers to expand their production capacities further and develop innovative solutions. For instance, in August 2022, Analog IC foundry GTA Semiconductor started its capacity expansion project in the LingangSpecial Area in the Shanghai Pilot Free Trade Zone, with plans to set up new production lines for automotive chips.
The growing penetration of 5G technology is driving the demand for 5 G-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.
However, 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. The output of integrated circuits in April declined 12.1% year on year to 25.9 billion units, the lowest since December 2020, according to the National Bureau of Statistics.
The growing demand for various applications in the market for ICs is expected to drive the IC market in the region. The leading semiconductor manufacturers in the country are also taking the initiative to expand their footprint in the 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.
China Integrated Circuit (IC) Market Trends
Increased Applications Of ICs In Consumer Electronics Expected To Promote Demand
China is also among the largest manufacturer 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 percent 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.
Furthermore, 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 studied market in China.
However, factors such as the recent ban put down by the US government on advanced electronic design automation (EDA) software exports to China may hinder Chinese chip companies from accessing advanced semiconductor technology, which in turn may negatively impact the growth of the IC market in the country.
However, the IC market in China has also expanded with the development of industries such as communications, consumer electronics, and other industries. According to the Ministry of Industry and Information Technology, 5G base stations across China exceeded 1.85 million by the second quarter of 2022. The country added nearly 300,000 5G base stations in the year's second quarter.
Further, 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 ICs is also expected to grow.
Analog Based Application-Specific IC Are Expected To Grow At Faster Pace
Application Specific Analog ICs designed for and used in all various consumer portable and non-portable audio/video devices, consumer equipment, automotive, and infotainment systems, among others.
Generally, these circuits coordinate with devices that receive signals from the environment or send alerts back, which are then modified (e.g., amplified, filtered, etc.) to match the output requirements. For instance, a microphone is an audio device that converts fluctuating vocal sounds into an electrical signal of varying voltage using an analog IC. Although digital ICs are increasingly being adopted in consumer electronic devices, analog ICs are still used for audio/video applications as they offer much higher density and can present more refined information.
Recent years have witnessed significant growth in demand for audio/video devices, especially in the consumer market. Many consumers today rely heavily on their audio products to aid connectivity and gaming, video watching, remote working, and music listening. Furthermore, the growing popularity of online streaming and OTT platforms globally has enhanced the demand for audio/video devices.
Similarly, the video gaming industry has witnessed remarkable growth in recent years, with video gaming participation even becoming mainstream. The advent of AR and VR technologies is further improving the overall gaming experience, which, in turn, is propelling the growth of China's IC Market.
The wearables industry is also expected to have the highest impact on the growth of the studied market, as the demand and market penetration of these devices has been growing significantly. With the application area for these devices expanding rapidly-from wellness and fitness to more sophisticated sectors such as communication, medical, and military-owing to the technical maturity of wearable devices, the demand for application-specific analog ICs is expected to remain high during the forecast period in the region.
Moreover, the growing adoption of automotive and various new electric and hybrid vehicles in the region is also expected to fuel the IC market in China during the forecast period. The growth of the automotive industry is driving the demand for analog ICs, which in turn is encouraging IC manufacturers to expand their production capacities further and develop innovative solutions. For instance, in August 2022, Analog IC foundry GTA Semiconductor started its capacity expansion project in the LingangSpecial Area in the Shanghai Pilot Free Trade Zone, with plans to set up new production lines for automotive chips.
China Integrated Circuit (IC) Industry Overview
The China Integrated Circuit (IC) Market is moderately concentrated, with significant players including Semiconductor Manufacturing International Corporation (SMIC), HiSilicon (Huawei Technologies Co., Ltd), Yangtze Memory Technologies Co (YMTC), UNISOC, and Naura Technology Group, among others. Players in the market are adopting strategies such as partnerships, mergers, collaborations, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In May 2023, BOE Technology Group Co Ltd, a Chinese display panel manufacturer, expanded its presence in the integrated circuits manufacturing and design industry by investing in a new company, Beijing Shiyan Technology Co Ltd.
In March 2023, Semiconductor manufacturer Yangtze Memory Technologies Co (YMTC) was awarded CNY 12.9 billion from the state-owned National Integrated Circuit Industry Investment Fund.
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.
China Integrated Circuit (IC) Market Leaders
Semiconductor Manufacturing International Corporation (SMIC)
HiSilicon (Huawei Technologies Co., Ltd)
Yangtze Memory Technologies Co (YMTC)
UNISOC
Naura Technology Group
*Disclaimer: Major Players sorted in no particular order
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China Integrated Circuit (IC) Market News
- April 2023: China's Ministry of Industry and Information Technology (MIIT) plans to establish the National Integrated Circuit Standardization Technical Committee to accelerate the development standards in core areas of integrated circuits (IC) and build a solid foundation for industrial development. According to MIIT, the committee would focus on accelerating the construction of the IC standards system and enhancing the effective communication of the industrial chain, along with supporting enterprises to participate deeply in the global industrial division of labor and international standard setting. It would also focus on urgent requirements for developing the IC industry and strengthen the synergistic development of domestic and international standards to create a standardization system covering the entire industrial chain.
- April 2023: China's Guangdong province has been focusing on doubling down by expanding its local semiconductor industry to meet the growing demand for chips from the region's carmakers and electronics companies. As per the government of China's Guangdong province, approximately 40 major semiconductor projects were under construction or planned in the southern Chinese province, with the combined investments worth more than CNY 500 billion (USD 74 billion).
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 Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Penetration of Consumer Electronics including Smartphones and Tablets
5.1.2 Continuous Evolution Of Mega Trends such as Cloud Computing, IoT and AI
5.1.3 Rising Capital Spending by Fabs to Increase Production Capacities
5.2 Market Challenges
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Analog
6.1.1.1 General-purpose IC
6.1.1.2 Application-specific IC
6.1.2 Logic
6.1.2.1 TTL (Transistor Transistor Logic)
6.1.2.2 CMOS (Complementary Metal Oxide Semiconductor)
6.1.2.3 Mixed-Signal IC
6.1.3 Memory
6.1.3.1 DRAM
6.1.3.2 Flash
6.1.3.3 Other Types
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 IT & Telecommunications
6.2.4 Industrial
6.2.5 Other Applications
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Semiconductor Manufacturing International Corporation (SMIC)
7.1.2 HiSilicon (Huawei Technologies Co., Ltd)
7.1.3 Yangtze Memory Technologies Co (YMTC)
7.1.4 UNISOC
7.1.5 Naura Technology Group
7.1.6 Hua Hong Semiconductor (Wuxi) Limited
7.1.7 Nexperia (Wingtech Technology)
7.1.8 GigaDevice Semiconductor Inc.
7.1.9 Jiangsu Changjiang Electronics Tech (JCET)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
China Integrated Circuit (IC) Industry Segmentation
An integrated circuit (IC), sometimes called a chip, microelectronic circuit, or microchip, is a semiconductor wafer on which multiple tiny diodes, capacitors, resistors, and transistors are fabricated. An IC can also function as an oscillator, amplifier, counter, timer, computer memory, logic gate, microcontroller, and microprocessor.
China Integrated Circuit (IC) Market is segmented By Type (Analog (General-purpose IC and Application-specific IC), Logic (TTL (Transistor Transistor Logic), CMOS (Complementary Metal Oxide Semiconductor), and Mixed-Signal IC), Memory (DRAM and Flash), and Micro (Microprocessors (MPU), Microcontrollers (MCU), and Digital Signal Processors)) and By Application (Consumer Electronics, Automotive, IT & Telecommunications and Industrial). The report offers the market size in value terms in USD for all the abovementioned segments.
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Frequently Asked Questions
What is the current China Integrated Circuit (IC) Market size?
The China Integrated Circuit (IC) Market is projected to register a CAGR of 10.33% during the forecast period (2024-2029)
Who are the key players in China Integrated Circuit (IC) Market?
Semiconductor Manufacturing International Corporation (SMIC), HiSilicon (Huawei Technologies Co., Ltd), Yangtze Memory Technologies Co (YMTC), UNISOC and Naura Technology Group are the major companies operating in the China Integrated Circuit (IC) Market.
What years does this China Integrated Circuit (IC) Market cover?
The report covers the China Integrated Circuit (IC) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Integrated Circuit (IC) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Integrated Circuit (IC) Industry Report
Statistics for the 2024 China Integrated Circuit (IC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Integrated Circuit (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.
