Chinese semiconductor industry
- Thread starter Hendrik_2000
- Start date
- Status
This is wafer capacity. I believe they already passed Japan in production in 2017 (probably by value, but I don't remember). They also passed the US in 2019, so China is #3 on that score.Via Broadsword Well turn out China is no 4 in ranking Not bad for late starter. Soon she will eclipse Japan
China Now Produces One Billion Chips a Day
By Anton Shilov about 3 hours ago
It's an all-time record.
Chinese semiconductor manufacturers produced over one billion of chips every day in June, which was an all-time record. Yet, while local chipmakers set records, it is not enough to meet demand of Chinese manufacturers that import the vast majority of semiconductors they use.
171.2 Billion ICs Made This Year So Far
Chinese makers of semiconductors (including makers of memory and logic components) produced 30.8 billion of chips in June, which was a 43.9% increase from the same period in 2020, according to the National Bureau of Statistics, reports Southern China Morning Post. In May, Chinese manufacturers produced 29.9 billion of ICs. In the first six months of the year Chinese makers produced 171.2 billion of semiconductor up 48.1% year-over-year.
Without any doubt, 30.8 billion of chips made in a month is a lot. Yet China imported 51.9 billion semiconductors in June, which means that the country could fab around 37% of its semiconductor needs, which means that it has formidable installed capacity, but is quite self-sufficient as far as chip supplies are concerned.
Catching Up with Japan
Earlier this week, IC Insights released its Global Wafer Capacity 2021-2025 report which revealed that Taiwan, South Korea, and Japan are the world's top three nations in terms of capacity, controlling well over a half of global semiconductor output.
(Image credit: IC Insights)
Summary
Chinese semiconductor industry has made an extraordinary progress in the last 20 years and it is not running out of steam, it is set to grow further and will probably replace Japan from the top 3 spot in IC Insights' this year or next.
Yet, because Chinese logic producers are at least five years behind industry leaders like Intel, TSMC, or Samsung Foundry, it unlikely that the country will be able to produce advanced CPUs or GPUs any time soon. Nonetheless, even now the local logic industry can satisfy demand of many Chinese chip designers.
antiterror13
Brigadier
Just a matter of time China would be no.1. My guess is between 2025 to 2030
@antiterror13 Sir I placed my bet by 2025, maybe I'm too optimistic and may sound like a fan boy but my reasons are the ff,
1) end of 2021 28nm mass production
2) late 2022 14nm mass production
3) SMIC Shanghai FAB will be finished and start producing chips by early or mid 2022
the two above nodes occupy at least 65% of demand inside China
4) SMIC , Huahong, Huali and Huawei expansion plan will be finished at most by 2024 with localized line
5) with that the possibility of 7nm line in production in 2023
Sir the momentum is there, the needs is urgent and the demand is huge, there is no reason to hold back any additional investment. If by that time all the above mentioned had come to fruition. China can implement a import substitute up to 5nm nodes and see all those newly established FABS in Arizona and TW become a white elephant.
They would never pull this move because Xiaomi is what is keeping Qualcomm in the mobile soc market. Apple and Samsung use their own custom chips and it would really hurt the Americans as much as it hurt Xiaomi.
If you think about it, America with her recent actions has lost the leverage it had. It has now become a symbiotic relationship.
Google now depends on a few Chinese hardware companies to distribute Android.
The Huawei ban has now left the US with a strategic vulnerability. It only worked because there were other Chinese companies that would replace Huawei. You ban Xiaomi, OPPO and Vivo and suddenly, Google and Qualcomm can't reach the consumer.
You'd be talking about huge massive phone shortages across the world because no other country can rump up production like China.
You'd also have 4 experienced Chinese companies determined to dethrone Google on the software side.
China has already won the war, it's just that some battles still haven't been fought yet.
You said India lost half their manufacturing to china, in the last 5 years because of tariffs. That's different than saying Indian manufacturing employment is down half from 5 years ago.
The 5 year decline was actually 46% of which 32% of it happened during 2020-2021, due to COVID-19. In other words, the non-COVID19 related decline was actually 14%. I don't know enough about this to say what accounts for that 14%, but I wouldn't be surprised if the bulk of that was due to tariffs on China inputs.
antiterror13
Brigadier
how?, please elaborate
@antiterror13 Sir perfect timing here is a video supporting my bet for 2025 
...lol and for our senior members from the video it claimed that somebody scam the Chinese CPU industry that delayed its progress for more than 10 years, who is that guy? and why he isn't persecuted?
...lol and for our senior members from the video it claimed that somebody scam the Chinese CPU industry that delayed its progress for more than 10 years, who is that guy? and why he isn't persecuted?14K views9 hours ago
Last edited:
- Status