China Semiconductor Market Overview, 2029

China has established numerous semiconductor manufacturing facilities, including foundries, to produce a wide range of semiconductor components. Notable companies, such as Semiconductor Manufacturing International Corporation (SMIC), are major players in the Chinese semiconductor manufacturing landscape. China is home to several domestic chip design companies that focus on developing integrated circuits for various applications. These companies contribute to the innovation and competitiveness of the Chinese semiconductor market. The demand for semiconductors in China is driven by the growth of the consumer electronics market. With a large population and increasing consumer purchasing power, there is a significant market for smartphones, smart appliances, and other electronic devices. China has advanced several chip technologies, but the country's commercial semiconductor market is still in its infancy. Nevertheless, the Chinese government is investing well over $150 billion in semiconductors between 2014 and 2030 in an attempt to narrow the gap. China is positioned to become a more formidable competitor in some semiconductor market categories, driven by a thriving industry and large government initiatives. The Chinese government has been actively supporting the semiconductor industry through various policies, funding, and initiatives. These efforts aim to promote technological self-sufficiency, reduce reliance on foreign technology, and enhance China's competitiveness in the global semiconductor market.

According to the research report "China Semiconductor Market Overview, 2029," published by Bonafide Research, the China Semiconductor Market was valued at more than USD 45 Billion in 2023. China has one of the largest and fastest-growing consumer electronics markets globally. The demand for smartphones, smart TVs, wearables, and other electronic devices contributes significantly to the demand for semiconductors. The automotive industry in China is experiencing substantial growth, with a focus on electric vehicles (EVs) and advanced driver-assistance systems (ADAS). Semiconductors are integral to the electronics and connectivity features of modern vehicles. The Chinese government has implemented various initiatives and policies to support the domestic semiconductor industry. This includes funding programmes, incentives, and efforts to reduce dependence on foreign technology. China is actively investing in AI and IoT technologies, which are key drivers of semiconductor demand. June and May saw an increase in China's monthly semiconductor output, reaching 28.8 billion units and 27.5 billion units, respectively, in 2022. AI chips, sensors, and connectivity solutions are essential for the development of smart devices and applications. Industries across various sectors are undergoing digital transformation, necessitating advanced semiconductor technologies. This includes manufacturing, healthcare, finance, and logistics, driving demand for semiconductor solutions. The adoption of emerging technologies such as quantum computing, advanced sensors, and next-generation memory solutions contributes to the demand for cutting-edge semiconductor components. China has set high goals for itself in terms of technology, one of which is the development of semiconductor manufacturing techniques. These goals serve as the impetus for R&D expenditures aimed at achieving technical self-sufficiency.

Based on the device types, they are segmented into the Memory Device, Logic Semiconductors, Microprocessor Unit, Analogue IC, Opto Semiconductor, Discrete Semiconductor, Power Semiconductor, Micro Controller Unit, Digital Signal Processors, and Semiconductor Sensors, among others. China Memory devices lead the market, and China has one of the largest and fastest-growing consumer electronics markets globally. The demand for smartphones, tablets, smart TVs, and other electronic devices has driven the need for memory devices, especially NAND flash memory and DRAM (Dynamic Random-Access Memory). China is a key location for the manufacture and use of smartphones. Memory devices are an essential part of the semiconductor business since smartphones require large quantities of memory for storage and effective multitasking. This is why memory devices are manufactured. The growth of data centres and cloud services in China has increased the demand for memory devices. These devices are essential for data storage, retrieval, and processing in cloud-based applications and services. The Internet of Things (IoT) ecosystem in China is expanding rapidly. IoT devices generate and process data, and memory devices play a key role in storing information and facilitating efficient communication among devices. The Chinese government has shown strong support for the semiconductor industry, including investments in memory manufacturing. Policies and initiatives aimed at achieving technological self-sufficiency have contributed to the growth of memory device production.

In terms of the application are segmented into the Networking & Communications, Data Centre/ Data Processing, Consumer Electronics, Industrial, Automotive, Government, Healthcare, Aerospace and Defense, Others among them in China the Microprocessor Unit is growing segment, The Chinese government has played a crucial role in fostering the growth of the semiconductor industry. Policies and initiatives aimed at achieving technological self-sufficiency and reducing dependency on foreign technology have provided a supportive environment for semiconductor development, including MPU production. There is a sense of national pride and a commitment to technological innovation in China's semiconductor industry. Companies aspire to develop cutting-edge technologies domestically, contributing to the culture of innovation within the sector. Chinese semiconductor companies and research institutions have been investing significantly in R&D. This investment culture supports the development of advanced microprocessor units and other semiconductor technologies. The focus on cultivating a skilled workforce through education and talent development programmes is integral to the culture of the Chinese semiconductor industry. The emphasis on fostering a pool of skilled engineers and researchers contributes to MPU advancements.

Considered in this report:
• Geography: China
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• China Semiconductor market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation



By Device Type:
• Memory Device
• Logic Semiconductors
• Microprocessor Unit
• Analog IC
• Opto Semiconductor
• Discrete Semiconductor
• Power Semiconductor
• Micro Controller Unit
• Digital Signal Processors
• Semiconductor Sensors

By Application:
• Networking & Communications
• Data Centre/ Data Processing
• Consumer Electronics
• Industrial
• Automotive
• Government
• Healthcare
• Aerospace and Defense
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Semiconductor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.