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China’s chip production to grow by 33% in 2021

Integrated chip (IC) production in China, including Chinese companies and foreign factories, will grow twice as fast in 2021 as it did in 2020.

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According to China’s National Bureau of Statistics (NBS), China will produce 359.4 billion integrated chips (ICs) in 2021, a significant increase of 33.3% over 2020. The growth rate in 2020 is double the 16.2%.

China does not currently produce the most technologically advanced chips. While the official data doesn’t list chip production by process technology or manufacturer, it does help highlight Beijing’s efforts to increase output amid the crisis and its goal of selling chips naturally. owner. headed by Beijing. The growth also shows that China is reaping rewards from its efforts to further integrate into global supply chain networks.

A report released by the US Semiconductor Industry Association (SIA) in early January 2022 predicted that if the current upward trend is maintained, the sales of China’s semiconductor chip industry may account for 17.4%. .worldwide. By the end of 2024, demand will rise sharply from 9% in 2020. That would make China the third-largest chip seller after the United States and South Korea.

The Chinese government’s supportive policies, preferential purchases of chips, and other stimulus measures have spawned an investment boom in the sector. By 2021, China will announce 28 more projects to build semiconductor factories (wafers) worth a total of $26 billion, though many will be used to produce chips, according to SIA. Technology. turmeric. Mature technologies such as linear ICs or MEMS.

In addition, according to data from the General Administration of Customs of China, China’s chip imports will reach US$432 billion in 2021, a year-on-year increase of 23.6%. In terms of quantity, China imported 432.5 billion integrated circuits, still higher than domestic output.

However, compared with the global market, Chinese companies have not yet reached the level of giants such as TSMC and Samsung. Of the 17 semiconductor chip-making companies with sales of more than $10 billion in 2021, none are from China, according to IC Insights. China’s largest chip company SMIC ranked 25th.

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