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China provides only 6% of its own needs for semiconductor products
According to IC Insights, companies headquartered in China produced $ 8.3 billion in chips in 2021, which is 5.9% of the country’s total $ 143 billion chip market. This is a very modest result, considering that, under the Made in China program, Beijing has set a target to meet 70% of its domestic demand by 2025.
Logic integrated circuit sales accounted for the largest share of the Chinese chip market in 2021, with MPU (microprocessor) and DRAM also among the top three semiconductor product categories in the Chinese market, analysts at IC Insights said in a recent report.
Recall: China became the largest chip market in the world back in 2021 and has continued to grow since then. In 2021, the Chinese integrated circuit market grew to $ 143.4 billion, which is 9% more than in 2021, when it was estimated at $ 131.3 billion. According to IC Insights, 60% ($ 86 billion) of the Chinese chip market was accounted for by exported products and 40% of the market ($ 57.4 billion) — by systems remaining in the country.
Logic Integrated Circuits (LICs) led growth, accounting for 26% ($ 37.5 billion) of the Chinese market last year. IC Insights predicts that the logic chip market will remain the largest semiconductor segment in China until 2025, with a CAGR of 10.5% during this period.
Strong smartphone sales in China and around the world, as well as growth in sales of various computer systems during the year due to quarantine restrictions due to COVID-19, led to the fact that microprocessors became the second largest segment of chips in China last year. MPU sales grew 12% in 2021 to $ 32.7 billion (22.8% of the country’s total chip market).
DRAM Chips Take 19% Of China Market In 2021. And if you add NAND flash memory to this, then all memory will account for 30% of the Chinese microcircuit market. High memory consumption in China is fueling the country’s passion for large-scale local production of DRAM and NAND.
Today, the Asia-Pacific region, including China, forms 63.8% of the global chip market, and in 2025 the share of this region will already be 68.1%. And while China remains the largest chip consumer since 2021, it is not yet a major chip maker.
Of all chips sold in China in 2021, only 15.9% were made in China. And if we take into account only companies headquartered in this country, then we are talking only about 5.9%. So far, most of the chips produced in China are accounted for by foreign companies such as TSMC, SK Hynix, Samsung, UMC.