Description
This report analyzes Mainland China semiconductor manufacturing and equipment industries, examining the technical, economic, and political issues that are shaping this nascent industry. Mainland China represents a huge opportunity for semiconductor manufacturers and equipment and materials suppliers.
Mainland China represents a huge opportunity for semiconductor manufacturers and equipment and materials suppliers. The emerging semiconductor market will exhibit growth far in excess of any other country.
China has made some progress in developing its domestic fabless industry, though is still dependent on importing the final manufactured product in several cases. It has also reduced its import dependence in some areas by encouraging global producers to set up manufacturing within China to serve both its local demand as well as use China as an export base. Most noticeably in recent years has been the setting up of memory plants by Samsung, Hynix, and Intel in China that has resulted in a strong CAGR of memory exports from China. However, given the continued growth of domestic tech demand as well as Chinese brand’s rising share of end tech products in the global market has meant that China’s demand for semiconductors has outpaced the growth of its domestic semis production and has increased demand for semi parts that it does not locally produce, resulting in larger net import of semiconductors.
Seventy percent of all tech- related imports by China are of semiconductor products, thus, making it highly dependent on foreign-sourced parts. Several of these imported semiconductors are also meant for powering its technology related exports (handsets, telco equipment, and consumer electronics). China also imports most of its equipment required for semi and display manufacturing and currently has limited capability to manufacture any of these equipment companies locally. Thus, not surprisingly, the focus of Chinese authorities, in the past decade or more, has been to develop a local semiconductor industry.
China’s rising investment in the semiconductor industry is growing TAM for local equipment makers. Based on the projects we track, we expect investments in new fabs or capacity expansion will exceed US$160bn in China over the coming 5-7 years; we expect this will drive an increase in China’s equipment spending to more $40 billion in 2025, with sixty percent of the investments going to memory fabs. We believe the expansion of product offerings by local equipment companies will result in significant growth opportunities over the coming five years.
While the focus on developing a domestic semiconductor industry has borne some fruit – local semis production has been growing at a 20% CAGR in recent years (including semi production by global players out of their China-based facilities) – China, as discussed in the previous section, remains a large importer of semiconductors, and hence, the need to continue to focus on developing the local industry. Geopolitical developments in recent years, particularly the inclusion of several Chinese entities (notably Huawei, Hikvision amongst others) by the US on its restricted Entity List, further adds urgency to China’s initiatives to localize the tech industry and reduce its import dependence.
Mainland China’s Semiconductor and Equipment Markets: Analysis and Manufacturing Trends
TABLE OF CONTENTS
Chapter 1. Introduction
1.1. Introduction
Chapter 2. Semiconductor Industry
2.1. Introduction
2.2. China’s Domestic Semiconductor Market
2.3. China’s Semiconductor Infrastructure
2.4. Government Goals
2.5. Semiconductor Manufacturers In China
2.5.1. Wuxi China Resources Huajing Microelectronics
2.5.2. CSMC Technologies
2.5.3. Shanghai Huahong Grace Semiconductor Manufacturing Corporation (HHGRACE)
2.5.4. Hangzhou Youwang Electronics
2.5.5. Huayue Microelectronics
2.5.6. Semiconductor Manufacturing Int’l (SMIC)
2.5.7. Advanced Semiconductor Manufacturing (ASMC)
2.5.8. Fairchild Semiconductor
2.5.9. Shanghai Belling
2.5.10. SK Hynix
2.5.11. Toshiba Semiconductor (Wuxi)
2.5.12. HeJian Technology
2.5.13. TSMC
2.5.14. Ningbo BYD Semiconductor
2.5.15. SIM-BCD
2.5.16. Intel
2.5.17. Samsung
2.5.18. Datung NXP Semiconductors
2.5.19. UMC
2.5.20. XMC
2.5.21. Shanghai Huali Microelectronics Corporation
2.5.22. GlobalFoundries
2.6. Back-End Manufacturing
2.7. Printed Circuit Board (PCB) Manufacturing
2.8. Microelectronics Industry Equipment
2.9. IC Design
2.10. Electronics Components
2.11. Role Of Foreign Companies
2.12. IC Industry Assessment
Chapter 3. Market Analysis
3.1. Economic Recovery In Asia
3.2. Semiconductor Market
3.2.1. Investment Strategies
3.2.2. China’s Semiconductor Outlook And Made-In-China 2025
3.2.3. China Semiconductor Policy Development
3.2.4. Progress On Government Investment In The Semiconductor Industry
3.2.5. IC Industry Status
3.2.6. China IC Fab Capacity
3.2.7. Huawei’s 2019 Targeted Financials
3.2.8. Global Memory Market
3.2.9. Chinese Memory Market
3.2.10. SMIC China’s Leading Foundry
3.2.11. SMIC Capabilities Compared To TSMC
3.3. Semiconductor Equipment Market
3.4. Telecommunications
3.4.1. Wireless
3.4.2. Internet
Chapter 4. High-Tech Sectors
4.1. Introduction
4.2. Telecommunications
4.3. Optoelectronics
4.4. Software
4.5. Consumer Electronics
4.6. Chemicals/Materials
4.7. Environmental Industry
4.8. Display
4.8.1. TFT-LCD Technology
4.8.2. OLED Technology
Chapter 5. High Technology Industry Development Zones
5.1. Introduction
5.2. Torch Program
5.3. High Technology Industry Development Zones
5.3.1. Anhui Province
Hefei High And New Technology Industry Development Zone
5.3.2. Beijing
Beijing Experimental Zone For The Development Of New Technology Industries
Changping Park Of Bez
Fengtai Park Of Bez
5.3.3. Fujian Province
Fuzhou Science And Technology Park
Xiamen Torch High Technology Industry Development Zone
5.3.4. Gansu Province
Lanzhou High And New Technology Industry Development Zone
5.3.5. Guangdong Province
Foshan High And New Technology Industry Development Zone
Guangzhou Tianhe High And New Technology Industry Development Zone
Huizhou Zhongkai New Technology Industry Development Zone
Shenzhen Science And Technology Industrial Park
Zhongshan High & New Technology Innovation Service Center
Zhuhai High And New Technology Industry Development Zone
5.3.6. Guangxi Zhuang Autonomous Region
Guilin High And New Technology Industry Development Zone
Nanning New Technology Industry Development Zone
5.3.7. Guizhou Province
Guiyang Xintian New Technology Industry Development Zone
5.3.8. Hainan Province
Hainan International Industrial Park
5.3.9. Hebei Province
Baoding New Technology Industry Development Zone
Shijiazhuang High And New Technology Industry Development Zone
5.3.10. Heilongjiang Province
Daqing High And New Technology Industry Development Zone
Harbin High And New Technology Industry Development Zone
5.3.11. Henan Province
Luoyang High And New Technology Industry Development Zone
Zhengzhou High And New Technology Industry Development Zone
5.3.12. Hubei Province
Wuhan Donghu New Technology Development Zone
Xiangfan High And New Technology Industry Development Zone
5.3.13. Hunan Province
Changsha High And New Technology Industry Development Zone
Zhuzhou High And New Technology Industry Development Zone
5.3.14. Inner Mongolia Autonomous Region
Baotou Rare Earth High And New Technology Industry Development Zone
5.3.15. Jiangsu Province
Changzhou High And New Technology Industry Development Zone
Nanjing High And New Technology Industry Development Zone
Suzhou High And New Technology Industry Development Zone
Wuxi High And New Technology Industry Development Zone
5.3.16. Jiangxi Province
Nanchang High And New Technology Industry Development Zone
5.3.17. Jilin Province
Changchun High And New Technology Industry Development Zone
Jilin High And New Technology Industry Development Zone
5.3.18. Liaoning Province
Anshan High And New Technology Industry Development Zone
Dalian High And New Technology Industrial Park
Shenyang New-High-Tech Industrial Development Zone
5.3.19. Shaanxi Province
Baoji High And New Technology Industry Development Zone
Xi’an New Technology Industry Development Zone
5.3.20. Shandong Province
Ji’nan High And New Technology Industry Development Zone
Qingdao High-Tech Industrial Park
Weifang High And New Technology Industry Development Zone
Zibo High And New Technology Industry Development Zone
5.3.21. Shanghai
Incubator Center Of High-Technology Of China Textile International
Shanghai High And New Technology Industry Development Zone
Shanghai Zhangjiang Hi-Tech Park
5.3.22. Shanxi Province
Taoyuan High And New Technology Industry Development Zone
5.3.23. Sichuan Province
Chengdu High And New Technology Industry Development Zone
Chongqing High And New Technology Industry Development Zone
Mianyang High And New Technology Industry Development Zone
5.3.24. Tianjin
Tianjin New Technology Industrial Park
5.3.25. Xinjiang Uygur Autonomous Region
Urumqi High And New Technology Industry Development Zone
5.3.26. Yunnan Province
Kunming High And New Technology Industry Development Zone
5.3.27. Zhejiang Province
Hangzhou High And New Technology Industry Development Zone
5.4. Free Trade Zones
Chapter 6. Economic Statistics And Analysis
6.1. Economic Climate
6.2. GDP
6.3. Employment Sector
6.4. Inflation
6.5. Retail Sales
6.6. Foreign Trade
6.7. Consumer Spending
6.8. Investments
6.9. Economic Statistics
LIST OF FIGURES
2.1. Fab Construction By China Region
2.2. IC Technology Development In China
3.1. China’s GDP
3.2. China’s IC Production
3.3. China’s IC Consumption
3.4. China’s IC Production/Consumption Ratio
3.5. China’s IC Import Requirements
3.6. China’s IC Supply/Demand
3.7. China’s IC Fab Capacity
3.8. IC Fab Capacity by Region
3.9. China’s IC Fab Capacity by Wafer Size
3.10. China’s IC Fab Capacity by Geometry
3.11. China’s IC Production by Type
3.12. Global Smartphone Market
3.13. China Smartphone Market Shares
3.14. NAND Market By Region
3.15. DRAM Market By Region
3.16. TSMC Revenue By Process
3.17. Semiconductor Equipment Forecast
3.18. Top Semiconductor Equipment Spenders
3.19. Semiconductor Equipment Revenue By Region By Quarter
3.20. Semiconductor Equipment Revenues To China By Quarter
3.21. Semiconductor Equipment Purchases By CXMT and YMTC
3.22. China’s 5G Capital Expenditure
3.23. China Internet Users
4.1. China LED Market
4.2. China’s Consumer Electronics Exports
4.3. Materials Forecast By Region
5.1. Map Of Regions Of China
6.1. China’s GDP Growth
LIST OF TABLES
2.1. Chinese IC Fab Construction
2.2. Chinese Foundry Construction
2.3. China IC Packaging And Testing Firms: Wholly-Owned International Firms
2.4. China IC Packaging And Testing Firms: Joint Ventures
2.5. China IC Packaging And Testing Firms: Wholly-Owned Taiwan Firms
2.6. China IC Packaging And Testing Firms: Locally-Owned Firms
2.7. China fabless IC design firms
2.8. Main Pure-Play Foundry Revenues
3.1. Teardown Of Huawei P30 And P40
3.2. Bit Growth Change For DRAMSs By Manufacturer
3.3. Bit Growth Change For NAND By Manufacturer
3.4. DRAM Roadmap By Manufacturer
3.5. 3d NAND Roadmap By Manufacturer
3.6. Top Semiconductor Foundries
3.7. SMIC Fabs
3.8. SMIC Revenues By Process
3.9. Initial Volume Production Comparison Between TSMC and SMIC
3.10. Chip Costs Per Node
4.1. China’s Leading Export/Import Partners For High-Technology Products
4.2. Main Software Parks In China
4.3. TFT-LCD Plants In China
4.4. OLED Plants In China
5.1. National High Technology Industry Development Zones
