China Logic Integrated Circuits Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

China Logic Integrated Circuits Market Trends and Insights

State-led "Made in China 2025" Self-Sufficiency Mandate

Central and municipal authorities coordinated record incentives that lifted domestic chip production from 23% in 2024 toward a 70% policy target by 2025. Local funds in Beijing and Shanghai each set investment pools exceeding USD 20 billion, while Chengdu and Jiangsu offered annual subsidies topping USD 70 million. Ten-year tax holidays for 28 nm and better nodes reduced effective production costs and accelerated fab ramp-ups. As a result, the China logic integrated circuits market logged swift capacity gains at 28-65 nm, where domestic share rose to 31.5% in 2024.

5G Smartphone and Wearable Production Upswing in Guangdong/Zhejiang

Guangdong’s import bill of CNY 1 trillion (USD 140 billion) of semiconductors in 2024 spurred 40 new fabrication projects worth USD 74 billion, anchoring large orders for logic devices in 5G handsets. Smarter Micro’s STAR Market listing raised CNY 1.5 billion (USD 210 billion) to scale RF logic for premium smartphones, while Zhejiang’s CNY 28.6 billion (USD 3.99 billion) semiconductor sales underscored a packaging and materials specialization that improved supply resilience. This coastal hub synergy trimmed device lead times and drove incremental unit demand inside the China logic integrated circuits market.

NEV/ADAS Demand Catalysing Automotive Logic IC Content

Electric vehicle penetration surpassed 39% in 2024, prompting over 300 domestic automotive-grade chip makers to enter the field, up from 30 three years earlier. BYD invested CNY 100 billion (USD 13.96 billion) in smart driving R&D and produced 70% of components in-house, showcasing vertical integration that lifted driver and controller IC volumes. Horizon Robotics and Volkswagen launched a USD 950 million joint venture, further increasing demand for high-performance logic in ADAS stacks. Forecast NEV penetration of 72% by 2030 cements a structural pull for the China logic integrated circuits market.

Hyperscale Data-Centre Build-out by BAT + C Drives High-End Logic

China’s “East Data West Computing” program sought to raise installed data-centre racks from 30,000 in 2020 to 720,000 by 2025, unlocking yearly investments of CNY 400 billion (USD 55.82 billion) for AI-oriented logic chips.^{[1]MERICS, “Oceans of Data Lift All Boats,” merics.org} Alibaba Cloud deployed liquid-cooled facilities in Zhangbei, while China Mobile and Tencent established 5G-integrated campuses that consumed growing volumes of high-core-count processors. Although some installations remained underutilized, aggregate server demand still lifted near-term orders for advanced logic.

US Export Controls on <14 nm Tools and EDA

Successive BIS rulings in 2024 curbed access to EUV equipment and mandated licences for Cadence and Synopsys software exports, delaying sub-14 nm process commercialization by an estimated two to three years. SMIC’s 5 nm production via deep-UV quadruple patterning achieved functional chips but endured 40-50% cost penalties and lower yield versus overseas peers. These constraints moderate the long-term CAGR of the China logic integrated circuits market.

Acute Design-Talent Shortage at Advanced Nodes

The industry’s skills gap exceeded 200,000 engineers in 2024, with chip-design salaries reaching CNY 1.2 million (USD 170 thousand) annually and 17% turnover at top foundries. While university enrolments in integrated-circuit majors nearly doubled, more than 60% of graduates lacked hands-on experience, lengthening ramp-up cycles for new design houses. Persistent labour deficits weigh on the China logic integrated circuits market growth outlook.

Segment Analysis

By IC Type: MOS Logic Remains Predominant

MOS Logic accounted for 77.5% revenue in 2024, anchored by ubiquitous system-on-chip designs for phones, EVs, and IoT gateways. Drivers/Controllers registered the fastest 11.2% CAGR, sustained by high-voltage traction inverters and motor controls used in NEVs. Standard Cells and Special-Purpose MOS held stable demand from cloud servers, whereas Gate Arrays filled niche customised logic needs. Digital Bipolar solutions persisted in optical-network backbones yet saw a shrinking footprint due to higher power draw.

Sophisticated Drivers/Controllers benefited from 3D multi-die integration, capitalised by SJSemi’s USD 700 million funding, enhancing local supply resilience against foreign alternatives.^{[2]SJSemiconductor, “SJSemi Closed USD 700 M New Financing,” sjsemi.com} BYD Semiconductor’s BF1181 1200 V driver advances domestic automotive-grade reliability, supporting China's logic integrated circuits market size returns at the component level.

By Technology Node: Advanced Scaling Push Intensifies

The 22/20 nm bracket captured 34.8% revenue in 2024, while ≤10 nm output grew at 12.6% CAGR as indigenous equipment matured. Domestic 28 nm lines, enabled by Shanghai Micro Electronics DUV lithography, reached 31% global capacity share by 2027, bolstering China's logic integrated circuits market resilience. Mature ≥65 nm nodes stayed relevant for power devices and industrial IoT, whereas 16/14 nm acted as a stepping-stone for FINFET learning curves.

SMIC and Huawei collaborated on a 5 nm Kirin processor, demonstrating deep-UV patterning prowess, albeit with cost premiums. Parallel R&D into 14 nm FINFET tools underpinned longer-term autonomy for the Chinese logic integrated circuits market.

By End-User Industry: Automotive Outpaces Consumer Electronics

Consumer electronics held 44.7% revenue in 2024, yet automotive logic IC demand posted a 14.3% CAGR to 2030 on rising ADAS complexity. IT and communication infrastructure maintained solid growth from the 5G rollout, while industrial IoT expanded through smart-factory upgrades. Automotive design wins drove larger die sizes and higher ASPs, lifting the China logic integrated circuits market size per vehicle.

BYD, Tesla China, and Horizon Robotics expanded ecosystem partnerships, accelerating localisation of MCU, power management, and perception processors. Policy targets for a 72% NEV share by 2030 indicated a durable pipeline for high-reliability logic.

By Business Model: Fabless Design Leads Value Creation

Fabless firms commanded 67.8% revenue in 2024 and projected a 13.1% CAGR, aligning with China’s IP-centric ambition. Lower capex allowed rapid pivots toward AI accelerators and edge computing. IDM operations persisted in power and sensor niches, where tight process control is mandatory. Leading IDM Silan Microelectronics shipped 220,000 wafers monthly, signaling a nascent domestic balance.

Elevated design activity fed consistent wafer starts for SMIC and Hua Hong, reinforcing a virtuous cycle that enlarged the China logic integrated circuits market.

Geography Analysis

The Yangtze River Delta and Pearl River Delta together hosted the bulk of fabrication, assembly, and design capacity. Guangdong unveiled 40 semiconductor projects worth USD 74 billion and imported CNY 1 trillion (USD 140 billion) chips in 2024, catalysing local sourcing programmes. Shanghai posted CNY 300 billion (USD 41.87 billion) sector sales, Jiangsu excelled in back-end services with Wuxi targeting CNY 280 billion (USD 39.08 billion) output by 2025, while Zhejiang specialised in materials and advanced packaging.^{[3]China Policy, “Yangtze River Delta Division of Labour in Chip Production,” policycn.com}

Beijing functioned as a policy, R&D, and design nucleus, anchoring SMIC’s headquarters and Huawei’s HiSilicon labs. Subsidy programmes and university clusters supplied talent, yet the capital region mirrored the nationwide engineer shortfall. Western provinces attracted data-centre investment under “East Data West Computing,” though power and skills constraints slowed chip-ecosystem migration. Emerging hubs such as Suzhou and Ganzhou rolled out tax holidays and land grants, broadening the territorial scope of the Chinese logic integrated circuits market.