China Integrated Circuit (IC) Market Size (2024 - 2029)

China Integrated Circuit (IC) Market Analysis

The China Integrated Circuit Market size is estimated at USD 180.41 billion in 2024, and is expected to reach USD 294.94 billion by 2029, growing at a CAGR of 10.33% during the forecast period (2024-2029).

China is among the leading countries producing semiconductors and related devices and consumption. The government has witnessed a boom in the electronics industry, especially since the infamous trade dispute with the United States. Although the local IC design and manufacturing houses are still behind their international counterparts, the favorable industry regulations and increased focus of various industry stakeholders are expected to facilitate the industry's growth.

• The automotive industry is among the leading demand drivers for ICs; the rapid growth of the new energy vehicle (NEV) in the domestic and international market and rising demand for semiconductor chips used in automotive electronics are promoting the development of the studied market.
• For instance, according to the China Association of Automobile Manufacturers (CAAM), In August 2023, China sold a total of 846,000 new energy vehicles. Of these, 808,000 were passenger electric vehicles, with the remaining 39,000 being commercial electric vehicles. Specifically, sales figures for passenger battery electric vehicles (BEVs) stood at 559,000 units, while passenger plug-in hybrid electric vehicles (PHEVs) accounted for 248,000 units.
• The growth of the automotive industry is also expected to drive the demand for analog ICs, which in turn is encouraging IC manufacturers to expand their production capacities further and develop innovative solutions. For instance, in August 2022, Analog IC foundry GTA Semiconductor started its capacity expansion project in the LingangSpecial Area in the Shanghai Pilot Free Trade Zone, with plans to set up new production lines for automotive chips.
• The growing penetration of 5G technology is driving the demand for 5 G-enabled smartphones and supporting the digitization of other industries. The high-speed data connectivity facilitated by 5G is expected to positively impact industrial automation and the adoption of advanced technologies such as AI, IoT, etc. As a broad range of electronic devices is used to establish such infrastructure, the demand for analog circuits is also expected to grow.
• The growing demand for various applications in the market for ICs is expected to drive the IC market in the region. The leading semiconductor manufacturers in the country are also taking the initiative to expand their footprint in the IC industry. For instance, in September 2022, Semiconductor Manufacturing International Corporation (SMIC) announced the official inauguration of Ningbo Semiconductor International Corporation, jointly established by China IC Capital (a wholly owned investment fund of SMIC), Hua Capital, and Ningbo SensonElectronics. The joint venture will focus on developing analog and specialty semiconductor technology platforms in high-voltage analog, optoelectronics, and radio frequency.

China Integrated Circuit (IC) Industry Segmentation

An integrated circuit (IC), sometimes called a chip, microelectronic circuit, or microchip, is a semiconductor wafer on which multiple tiny diodes, capacitors, resistors, and transistors are fabricated. An IC can also function as an oscillator, amplifier, counter, timer, computer memory, logic gate, microcontroller, and microprocessor.

China integrated circuit (IC) market is segmented by type (analog [general-purpose IC and application-specific IC), logic (TTL (transistor transistor logic), CMOS (complementary metal oxide semiconductor), and mixed-signal IC), memory (DRAM and flash), and micro (microprocessors (MPU), microcontrollers (MCU), and digital signal processors)) and by application (consumer electronics, automotive, IT & telecommunications and ndustrial). The report offers the market size in value terms in USD for all the abovementioned segments.