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Date: 30-05-22

Local based chipmaker supply 6.6% of the China's $186.5 billion market

Only 6.6% of the China's $186.5 billion IC market is supplied by China based chip makers made at local semiconductor fabs in year 2021, as per IC Insights. IC Insights estimates that of the $12.3 billion of chips manufactured by China-based companies, about $2.7 billion was from IDMs and $9.6 billion was from pure-play foundries like SMIC.

IC Insights reported that a very clear distinction should be made between China’s semiconductor IC market and China’s indigenous IC production. Though China producing lot of semiconductor devices these days,  IC chip manufactured in China  is only 16.7% of its $186.5 billion IC consumption market in year 2021, and it was 12.7% 10 years back in year 2011.  IC Insights forecasts this share of local making to rise by 4.5% from 2021 to 21.2% in 2026 .

China produced a $31.2 billion worth of chips in 2021 in local fabs, among this China-headquartered companies produced $12.3 billion with a share of 39.4%. Global leading foundry and IDM fabs such as TSMC, SK Hynix, Samsung, Intel, UMC, and  some other non-China headquarterd companies who have fabs in China made the rest.

Some more analysis shared by IC Insights include:

If China-based IC manufacturing rises to $58.2 billion in 2026 as IC Insights forecasts, China-based IC production would still represent only 8.1% of the total forecasted 2026 worldwide IC market of $717.7 billion.  Even after adding a significant markup to some of the Chinese producers’ IC sales (many Chinese IC producers are foundries that sell their Ics to companies that re-sell these products to the electronic system producers), China-based IC production would still likely represent only about 10% of the global IC market in 2026.

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