China Semiconductor Device Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The China semiconductor device market is segmented by Device Type (Discrete Semiconductors, Optoelectronics, Sensors, and Integrated Circuits (Analog, Logic, Memory, and Micro (Microprocessors, Microcontrollers, and Digital Signal Processors))) and End-User Vertical (Automotive, Communication (Wired and Wireless), Consumer Electronics, Industrial, Computing/Data Storage, and Other End-User Verticals). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

China Semiconductor Device Market Size

China Semiconductor Device Market Summary
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Study Period 2018-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR 9.32 %
Market Concentration Low

Major Players

China Semiconductor Device Market Major Players

*Disclaimer: Major Players sorted in no particular order

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China Semiconductor Device Market Analysis

The China semiconductor device market is expected to register a CAGR of 9.32% during the forecast period.

  • The China semiconductor device market is currently valued at USD 217.01 billion and is anticipated to reach USD 370.40 billion by the end of the forecast period. The outbreak of COVID-19 across the country significantly disrupted the supply chain and production of the studied market in the initial phase of 2020.
  • For circuit and chipmakers, the impact was more severe. Due to labor shortages, many of the package and testing plants in the country reduced or even suspended operations. This also created a bottleneck for end-product companies that depended on semiconductors. In Q1 of 2020, the COVID-19 pandemic had a significant impact on the semiconductor industry, leading to various challenges, such as low inventory levels for clients of semiconductor vendors and distribution channels. The effects of the pandemic were felt throughout the supply chain, disrupting production and causing a slowdown in smartphone demand.
  • However, as the supply chain gradually recovered in the Q2 of 2020, governments enabled fiscal policies to recover the economy. These factors, combined with the rise of the stay-at-home economy, led to increased restocking demand from downstream clients, boosting semiconductor revenue.
  • The pandemic also increased investments in semiconductor equipment to cater to the rising demands from various end-user verticals. For instance, according to Semiconductor Equipment and Materials International (SEMI), the spending on semiconductor equipment in China amounted to USD 29.62 billion in 2021.
  • Also, the semiconductor shortage caused by the COVID-19 pandemic prompted players to focus on increasing production capacity. For instance, the Semiconductor Manufacturing International Corp (SMIC) announced aggressive plans to double its production capacity by 2025 by constructing new chip fabrication plants in various cities, including a September 2021 announcement to establish a new factory in Shanghai's free trade zone.
  • 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 most extensive network in the world, as per MIIT. The growing implementation of 5G in the country will increase the uptake of 5G-enabled devices.
  • In China, the growth of the studied market can also be attributed to the booming electronics industry. Electronics is one of the largest industries in China and is a significant contributor to the country's overall economic growth. For instance, per the State Council of the People's Republic of China, during the two months from January to February 2022, the added value of major electronics manufacturers rose 12.7% year-on-year, compared with the 7.5% growth in the overall industrial sector in the country. China is the world's leading producer of electronic devices such as TVs, smartphones, laptops and PCs, refrigerators, and air conditioners.
  • Additionally, several initiatives have been taken in recent years to boost the industry's growth. For instance, during the second pandemic wave, the Chinese government announced plans to expand the domestic market for electronic components to CNY 2.1 trillion (USD 327 billion) by 2023. The program covers components, materials, and manufacturing equipment used in areas such as smartphones, drones, 5G wireless, connected factories, electric vehicles, robotics, high-speed rail, and aerospace. Specifically, the Chinese government is looking to increase the output of semiconductors, sensors, magnets, fiber-optic equipment, and software, among others. Such initiatives create a positive growth outlook for the studied market.
  • Further, the growing adoption of cloud computing in the country is another factor boosting the market growth. According to the China Academy of Information and Communications Technology (CAICT), by 2023, the size of China's cloud computing market will reach CNY 375.42 billion (USD 56.31 billion), increasing by 1.8 times compared with that of 2019, and the CAGR from 2019 to 2023 will be as high as 29.5%.

China Semiconductor Device Market Trends

Automotive Sector is Expected to Drive the Market

  • As per vehicle production statistics, China was the largest automotive market in the world in 2021.The country is expected to retain its dominance in the automotive semiconductor market during the forecast period. The rising demand for vehicles in the country, coupled with favorable regulations and economic labor costs, has boosted local vehicle production.
  • An increasing number of original equipment manufacturers (OEMs) are offering advanced automotive electronics in economic vehicle variants. The surging demand for comfort and safety features in today's vehicles is expected to drive the automotive semiconductor market in China. The Government of China has placed strategic emphasis on plug-in hybrid electric vehicles (EVs) and pure EVs while promoting the adoption of energy-efficient hybrid vehicles. Their sales are also increasing rapidly.
  • The Chinese government plays a pivotal role in driving R&D and intends to make the country an R&D hub for vehicles and vehicle technologies. Also, China has incentives for electric cars, plug-in hybrids, and fuel-cell vehicles. The use of basic engine semiconductors to lower carbon emissions in passenger cars is also expected to contribute to the growth of the automotive semiconductor market.
China Semiconductor Device Market: Monthly Retail Trade Revenue of Cars, In Billion CNY, China, October 2021 - March 2022

Consumer Electronics is Expected to Hold Significant Market Share

  • Most consumer electronics, like mobile phones, laptops, game consoles, microwaves, and refrigerators, operate with semiconductors, such as integrated chips, diodes, and transistors. The high demand for these devices is a crucial factor contributing to the growth of the studied market.
  • Integrated circuits are widespread in consumer electronics with microprocessor control, from cell phones and portable music players to gaming systems, personal computers, and other digital devices. An integrated circuit (IC) or chip is a highly sophisticated device packing up many electronic components like transistors, resistors, and capacitors into an area of a few square centimeters on a silicon wafer.
  • Further, semiconductor memory is a digital electronic data storage device implemented with semiconductor electronic devices on an integrated circuit. Different types of memory are available, such as dynamic random access memory (DRAM), static random access memory (SRAM), NOR Flash, NAND Flash, read-only memory (ROM), and erasable programmable read-only memory (EPROM). They find widespread application in digital consumer products like PCs, laptops, cameras, and phones.
  • For instance, in July 2022, Samsung unveiled the world's first 24 Gbps GDDR6 DRAM chips, made for high-performance general processing units (GPUs) used in gaming PCs, laptops, and consoles. Also, in May 2023, NEO Semiconductor, a developer of innovative technologies for 3D NAND flash and DRAM memory, announced the launch of its ground-breaking technology, 3D X-DRAM. This development is the world's first 3D NAND-like DRAM cell array targeted to solve DRAM's capacity bottleneck and replace the entire 2D DRAM market.
  • Further, trends such as consumer IoT (Internet of Things) have fueled the demand for semiconductor devices. An ideal example of consumer IoT is the smart home, where electronic equipment, heating, ventilating, and air conditioning (HVAC) systems, lighting, and appliances are all monitored and controlled from a central hub. IoT applications cannot work without sensors and integrated circuits, so all IoT devices require semiconductors, which creates a huge growth potential for the market studied.
China Semiconductor Device Market: Retail Trade Revenue of Household Appliances and Consumer Electronics, In Billion CNY, China, August 2022 - December 2022

China Semiconductor Device Industry Overview

The China semiconductor device market fluctuates with growing consolidation, technological advancement, and geopolitical scenarios. Further, the competition will only increase in a market where the sustainable competitive advantage through innovation is considerably high. In such a situation, the brand identity plays a significant role, considering the importance of quality that the end-users expect from a semiconductor manufacturing player. 

With the presence of prominent market incumbents, such as Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated, STMicroelectronics NV, Micron Technology Inc., Xilinx Inc., NXP Semiconductors NV, Toshiba Corporation, Texas Instruments Inc., Taiwan Semiconductor Manufacturing Company (TSMC) Limited, SK Hynix Inc., Samsung Electronics Co. Ltd, the market penetration levels are also high.

In November 2022, Nvidia Corporation announced that it is offering a new advanced chip in China that meets recent export control rules to keep advanced technology out of China's hands.

In March 2022, Renesas Electronics Group, a global supplier of semiconductor solutions, announced the launch of the RZ/Five general-purpose microprocessor (MPU) based on the 64-bit RISC-V, the V central processing unit (CPU) instruction set architecture (ISA). This enhances Renesas' existing lineup of MPUs based on Arm CPU cores, expands customer choices and provides greater flexibility during product development.

China Semiconductor Device Market Leaders

  1. Intel Corporation

  2. Nvidia Corporation

  3. Kyocera Corporation

  4. Qualcomm Incorporated

  5. STMicroelectronics NV

*Disclaimer: Major Players sorted in no particular order

China Semiconductor Device Market Concentration

China Semiconductor Device Market News

  • April 2023: Renesas Electronics Corp. has produced its first microcontroller (MCU) based on advanced 22-nm process technology. By employing state-of-the-art process technology, Renesas provides MCUs with higher performance at lower power consumption based on reduced core voltages. The process technology enables the integration of a feature set that includes functions such as radio frequency (RF). The advanced process node also uses a smaller die area, resulting in more minor chips with improved peripheral and memory integration.
  • January 2022: WeEn Semiconductors' Global Operation Center launched a ceremony in Shanghai with the theme 'New Journey and United Strength." The event highlighted the revitalized image of WeEn semiconductors, symbolizing its progress and success in the industry. This significant occasion began an exciting chapter for the company, further strengthening its position in the global market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Technological Trends

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Adoption of Technologies like IoT and AI

      2. 5.1.2 Increased Deployment of 5G and Rising Demand for 5G Smartphones

    2. 5.2 Market Restraints

      1. 5.2.1 Supply Chain Disruptions Resulting in Semiconductor Chip Shortage

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Device Type

      1. 6.1.1 Discrete Semiconductors

      2. 6.1.2 Optoelectronics

      3. 6.1.3 Sensors

      4. 6.1.4 Integrated Circuits

        1. 6.1.4.1 Analog

        2. 6.1.4.2 Logic

        3. 6.1.4.3 Memory

        4. 6.1.4.4 Micro

          1. 6.1.4.4.1 Microprocessors (MPU)

          2. 6.1.4.4.2 Microcontrollers (MCU)

          3. 6.1.4.4.3 Digital Signal Processors

    2. 6.2 By End-User Vertical

      1. 6.2.1 Automotive

      2. 6.2.2 Communication (Wired and Wireless)

      3. 6.2.3 Consumer Electronics

      4. 6.2.4 Industrial

      5. 6.2.5 Computing/Data Storage

      6. 6.2.6 Other End-User Verticals

  7. 7. SEMICONDUCTOR FOUNDRY LANDSCAPE

    1. 7.1 Foundry Business Revenue and Market Shares by Foundries

    2. 7.2 Semiconductor Sales - IDM vs Fabless

    3. 7.3 Wafer Capacity by end of December 2022 based on Fab Location

    4. 7.4 Wafer Capacity by the Top Five Semiconductor Companies and an Indication Of Wafer Capacity By Node Technology

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles

      1. 8.1.1 Intel Corporation

      2. 8.1.2 Nvidia Corporation

      3. 8.1.3 Kyocera Corporation

      4. 8.1.4 Qualcomm Incorporated

      5. 8.1.5 STMicroelectronics NV

      6. 8.1.6 Micron Technology Inc.

      7. 8.1.7 Xilinx Inc.

      8. 8.1.8 NXP Semiconductors NV

      9. 8.1.9 Toshiba Corporation

      10. 8.1.10 Texas Instruments Inc.

      11. 8.1.11 Taiwan Semiconductor Manufacturing Company (TSMC) Limited

      12. 8.1.12 SK Hynix Inc.

      13. 8.1.13 Samsung Electronics Co. Ltd

      14. 8.1.14 Fujitsu Semiconductor Ltd

      15. 8.1.15 Rohm Co. Ltd

      16. 8.1.16 Infineon Technologies AG

      17. 8.1.17 Renesas Electronics Corporation

      18. 8.1.18 Advanced Semiconductor Engineering Inc.

      19. 8.1.19 Broadcom Inc.

      20. 8.1.20 ON Semiconductor Corporation

    2. *List Not Exhaustive
  9. 9. FUTURE OUTLOOK OF THE MARKET

China Semiconductor Device Industry Segmentation

A semiconductor device is an electronic component that relies on the electronic properties of semiconductor material for its function. Its conductivity lies between conductors and insulators. Semiconductor devices have replaced vacuum tubes in most applications. They conduct electric current in the solid state rather than as free electrons across a vacuum or as free electrons and ions through an ionized gas.

The China semiconductor device market is segmented into device types, such as discrete semiconductors, optoelectronics, sensors, and integrated circuits (analog, logic, memory, and micro (microprocessors, microcontrollers, and digital signal processors)) and end-user verticals, including automotive, communication (wired and wireless), consumer electronics, industrial, computing/data storage, and other end-user verticals. 

The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

By Device Type
Discrete Semiconductors
Optoelectronics
Sensors
Integrated Circuits
Analog
Logic
Memory
Micro
Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
By End-User Vertical
Automotive
Communication (Wired and Wireless)
Consumer Electronics
Industrial
Computing/Data Storage
Other End-User Verticals

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Frequently Asked Questions

The China Semiconductor Device Market is projected to register a CAGR of 9.32% during the forecast period (2023-2028).

Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated and STMicroelectronics NV are the major companies operating in the China Semiconductor Device Market.

China Semiconductor Device Industry Report

Statistics for the 2023 China Semiconductor Device market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Semiconductor Device analysis includes a market forecast outlook to for 2023 to 2028) and historical overview. Get a sample of this industry analysis as a free report PDF download.

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