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Chinese IC industry overview in 2023 -growth and future

In the past decades, China’s electronic information manufacturing industry has been in a state of growth. According to the relevant data, China’s electronic information manufacturing industry has been growing steadily, and by 2022, its scale will exceed 20 trillion. Today, this article brings an understanding of Chinese IC industry overview, including its growth and future.

Table of Contents

The growth of IC Industry in China

China's electronic information manufacturing industry Scale and import of integrated circuits
China’s electronic information manufacturing industry Scale and import of integrated circuits

China’s integrated circuit imports have reached 276 million yuan in 2022 , it was lower than that in 2021. But it cannot be judged whether this is a real downward trend or a simple industry adjustment.

Design industry

The integrated circuit design industry has always maintained a steady growth. Last year, the growth rate was still close to 20%, reaching 19.6%. From 2008 to 2022, China’s IC design industry has grown by about 13 times.

Sales revenue and growth rate of IC design Industry from 2012 to 2022
Sales revenue and growth rate of IC design Industry from 2012 to 2022

Manufacturing industry

As can be seen from the above figure, the manufacturing industry has also maintained relatively rapid growth. Especially after the government started investing in capacity expansion in recent years, the growth rate of the manufacturing sector in 2022 is expected to grow 21.4%.

China's Top 10 integrated Circuit Wafer Manufacturing Enterprises (Sales Revenue) by Enterprise Nature
China’s Top 10 integrated Circuit Wafer Manufacturing Enterprises (Sales Revenue) by Enterprise Nature

It is worth noting that despite the rapid growth of the manufacturing industry, in China’s IC manufacturing industry, Chinese domestic enterprises account for 31.1% of China’s IC manufacturing industry, while foreign enterprises account for 64.8%. The manufacturing industry in mainland China includes Chinese domestic enterprises, foreign-funded enterprises, and Taiwan-funded enterprises. With the expansion of production in China and the production capacity being put into use, the market share of domestic enterprises in China may increase .

Chip sealing test industry

Sales revenue and growth rate of IC sealing test industry from 2012 to 2022
Sales revenue and growth rate of IC sealing test industry from 2012 to 2022
The chip sealing test industry has been growing steadily, with sales increasing 4.5 times from 2008 to 2021 and maintaining steady growth in 2022. In 2022, the year-on-year growth rate will remain at around 8.4%. According to relevant data, China’s chip sealing test industry has already achieved the world’s largest scale in the traditional packaging field, and will devote itself to the development of advanced packaging in the future.

Equipment industry

Sales revenue and growth rate of IC equipment industry from 2012 to 2022
Sales revenue and growth rate of IC equipment industry from 2012 to 2022
In the entire supply chain of China’s electronic information manufacturing industry, the growth of the equipment industry is very obvious . The growth rate in 2021 will reach 58%, and the growth rate in 2022 will still reach 36%. Under the influence of the international trade market , the equipment industry in mainland China has gained a chance for development, with the sales of the equipment industry increased by 30 times from 2008 to 2022.

Materials industry

Sales revenue and growth rate of IC material Industry from 2012 to 2022
Sales revenue and growth rate of IC material Industry from 2012 to 2022

The growth of materials is relatively stable, in the statistical material data includes the semiconductor material. In 2022, the growth rate of China’s domestic materials will reach 25.4% . while in 2021 , the materials industry was even faster, reaching 40%. From 2008 to 2022, the integrated circuit material industry will grow by 8.5 times .

The supply of materials is driven by various reasons such as international and domestic supply chain security, industrial security, etc. The growth rate of the materials industry in mainland China is very fast. From 2008 to 2022, the integrated circuit material industry will grow by 8.5 times.

Major Challenges of China’s IC Industry

China’s IC industry chain is highly dependent on the international market.

In terms of key industries and field applications, although more than 70% of electronic products are manufactured and assembled in mainland China, there is a lack of major standards, core technologies and intellectual property rights.

In IC chip products, the United States has a leading edge in most types of chips and dominates standards and product definitions; Some countries, such as Germany, France, Italy, etc., have distinctive advantages in analog chips; South Korea has a leading edge in memory chips among digital chips. Advantages; Although mainland China is the second largest in the world, it lacks the definition of standards and high-end products.

In terms of integrated circuit chip manufacturing, the United States has a leading edge in processor and analog chip manufacturing processes, but its manufacturing and packaging integration capacity is seriously insufficient; South Korea has a dominant position in memory manufacturing, and it also has a leading edge in logic technology; China’s Taiwan region manufacturing and sealing test foundry technology and scale in the world’s leading position. In mainland China, the traditional packaging industry scale is the first in the world, and the system packaging integration technology has reached the international advanced level, but the industry scale is relatively small at present.

In terms of integrated circuit supply chain, EDA/IP in the United States occupies 90% of the global market, providing 50% of the world’s equipment and 20% of materials; Japan provides about 30% of the world’s equipment and 70% of materials, of which Nikon and Canon in Japan Lithography machines account for nearly 20% of the global market; Europe provides about 20% of the world’s equipment, mainly lithography machines, of which ASML lithography machines in the Netherlands account for 80% of the global market.

In response, the Chinese mainland is building up its supply capacity in 28nm equipment and materials.

Development Achievements of IC in China
Development Achievements of IC in China

Development Achievements of IC in China

Over the past 15 years, China has continuously introduced various policies, which have led China’s IC industry to build a relatively complete system layout and comprehensive capability.
Policies such as major special projects, large funds, and the Science and Technology Innovation Board have led China’s integrated circuit industry to build a relatively complete system layout and improve manufacturing capabilities.

Design industry – China’s technological capabilities have been greatly improved, and breakthroughs have been made in processors (CPUs), field programmable gate arrays (FPGAs), and communication system-on-chips (SOCs).

Manufacturing process – Significant advances in technology.

Packaging integration – from low-end to high-end, traditional packaging scale first in the world, advanced packaging reached the international advanced level.

At present, mainland China has cultivated more than 800 key electronic information manufacturing companies, and more than 150 listed enterprises, these enterprises play a vital role in supporting the development of the whole industry . And there are more than 500,000 employees, including nearly 100,000 core innovation teams, in the industry.

On the whole, China’s integrated circuit has formed a technical system, established an industrial chain, and greatly improved the international competitiveness of the industry.

Conclusion

Based on the above situation, the rise of the Chinese market, the current situation of China’s electronic information manufacturing industry also brings opportunities to FDSOI, three-dimensional transistor and other technologies. Design innovation, electronic design tools (EDA) intelligent and other technological innovation has become a new focus. Chinese IC may follow to lead, and then to globalization.

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