China Logic Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 64.82 Billion |
| Market Size (2029) | USD 98.81 Billion |
| CAGR (2024 - 2029) | 8.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Logic Integrated Circuits Market Analysis
The China Logic Integrated Circuits Market size is estimated at USD 64.82 billion in 2024, and is expected to reach USD 98.81 billion by 2029, growing at a CAGR of 8.80% during the forecast period (2024-2029).
- China is a dynamic and rapidly growing segment of the global semiconductor industry. With strong manufacturing capabilities and increasing demand for electronic devices, China is pivotal in driving innovation, production, and consumption of logic ICs. The presence of leading semiconductor foundries, assembly and testing facilities, and electronics manufacturing services enables efficient and cost-effective production of logic ICs. It is home to a vast and rapidly expanding consumer electronics and automotive market with developments in ADAS and EVs, increasing industrialization and automation.
- China is widely recognized as a significant leader in the automotive and mobility industry owing to the consistent performance of the domestic market and its enormous potential. The Chinese Ministry of Industry and Information Technology projects that domestic vehicle production will reach 35 million by 2025, further strengthening its position as the world's leading car manufacturer. According to CAAM, China's new energy vehicle sales amounted to 846,000 units, 808,000 of which were passenger EVs and 39,000 commercial electric vehicles during August 2023. Sales of BEVs and PHEVs were 559,000 and 248,000 vehicles, respectively.
- China has one of the largest telecommunications markets in the world, driven by rapid urbanization, adoption of advanced communication technologies, and increasing internet penetration. According to CAICT, the shipment volume of 5G mobile phones grew by 82.8% in 2023. 5G's unparalleled speed and low-latency capabilities facilitate real-time communication between devices. As Chinese industries strive to improve productivity, efficiency, and quality through automation and smart manufacturing technologies, there is a growing demand for logic integrated circuits (ICs).
- Logic ICs (integrated circuits) are designed to operate at high speeds with precise timing requirements. As clock frequencies increase, designers must ensure signals propagate through the circuitry within specified time windows to avoid errors and maintain system performance. Managing signal integrity, minimizing delays, and avoiding issues like crosstalk and noise become increasingly difficult as the design grows more complex. With the increasing complexity, exhaustive testing becomes time-consuming and resource-intensive, thus restraining the market's growth.
- Macroeconomic factors, such as geopolitical issues impacting the semiconductor supply chain, raw material availability, and manufacturing capacity, can affect the market. This can lead manufacturers to increase prices to remain profitable, potentially reducing product demand. Additionally, inflation can result in contract limitations, changes in labor, and input challenges for manufacturers. The concerns about economic disintegration have grown in recent years due to escalating geopolitical tensions and strained relations between the United States and China.
China Logic Integrated Circuits Market Trends
Consumer Electronics is Expected to Witness a Significant Growth
- Consumer electronics devices such as smartphones, televisions, gaming consoles, and smart home devices rely on digital processing. Logic ICs, specifically digital logic ICs, are designed to process and manipulate digital signals and perform logical operations. They are essential for data storage, arithmetic calculations, control functions, and signal routing. Due to the growing adoption of these devices, the demand for logic ICs is projected to grow.
- Further, new product launches and new entrants into the market have supported the demand growth of Logic ICs in the consumer electronics industry. As more companies enter the market, differentiating their product offerings becomes essential. In October 2023, Samsung Electronics Co., Ltd. announced its latest innovations in logic semiconductor technologies and outlined its blueprint for upcoming technological advancements at its inaugural Samsung System LSI Tech Day 2023 event.
- Logic ICs offer speed, scalability, design flexibility, reliability, availability, and support while adhering to industry standards. Logic integrated circuits (IC) contribute to cost reduction and are part of a global supply chain, making them highly suitable for the diverse needs of the consumer electronics industry. According to the NBS of China (National Bureau of Statistics of China), in April 2024, China witnessed retail sales of household appliances and consumer electronics surpassing CNY 64 billion (USD 8.91 billion).
- Further, the IoT market continues to grow, connecting various consumer electronic devices to enable seamless communication. Logic ICs are crucial in IoT devices as they handle data processing, sensor integration, connectivity, and control functions. As the IoT market expands, logic ICs capable of low-power and wireless communication will be increasingly sought after. Logic ICs, particularly specialized AI accelerators and neural network processors, are likely to be in high demand to support the computational requirements of AI algorithms in consumer electronic devices.
MOS Special Purpose IC is Expected to Hold a Significant Market Share
- MOS special-purpose circuits enable the integration and miniaturization of logic ICs. By embedding specialized functionalities into dedicated circuits, designers can shrink chip sizes and reduce component counts. This conserves space and bolsters system reliability by cutting down interconnections and potential failure points. Such integration paves the way for creating compact, highly integrated systems, including mobile devices, wearables, and IoT devices.
- China's consumer electronics market is dynamic and rapidly evolving, wielding considerable economic influence. The increase in the production volume of electronics, owing to increased demand for PCs from the consumer sectors, would aid the expansion of the MOS special-purpose circuits. For instance, according to the NBS of China (National Bureau of Statistics of China), during January/February of 2024, the production value of finished computers in China stood at 45.45 million units.
- Rapid advancements in communication technologies, such as IoT (Internet of Things), 5G, and edge computing, drive the demand for MOS special-purpose circuits. These ICs are needed to enable efficient communication, data transmission, and network connectivity. MOS special-purpose circuits logic ICs designed for high-speed interconnects, wireless communication protocols, and network infrastructure are in high demand to support modern communication systems' ever-increasing data rates, low latency, and massive connectivity requirements.
- In the communication industry, advanced technologies, like 5G, drive new market demands on energy consumption and performance levels due to the demand for speedier data connections and improved network reliability. Moreover, China has also emerged as the leader in developing 5G infrastructure. For instance, according to data provided by MIIT, at the end of 2023, the number of 5G base stations in China stood at 3.38 million. Further, deploying 5G networks and developing future-generation wireless technologies will drive the demand for MOS special-purpose circuits logic ICs in the communication industry.
China Logic Integrated Circuits Industry Overview
The China logic integrated circuits market is highly fragmented, with global conglomerates and specialized players operating across various segments. While several large multinational companies dominate certain high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the wide range of applications for logic integrated circuits, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the China logic integrated circuits market include STMicroelectronics N.V., Texas Instruments Inc., Analog Devices Inc., Renesas Electronics Corporation, Intel Corporation. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
To succeed in the China logic integrated circuits market, companies must prioritize innovation, especially in various logic integrated circuits types. As industries increasingly demand advanced solutions, the development of advanced logic integrated circuit types could become a significant differentiator. Additionally, expanding service offerings and enhancing customer support will be crucial for maintaining long-term relationships and securing repeat business. Companies that invest in emerging markets and adapt their products to regional needs are likely to gain a competitive advantage in this fragmented market.
China Logic Integrated Circuits Market Leaders
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STMicroelectronics N.V.
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Texas Instruments Inc
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Renesas Electronics Corporation
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Analog Devices Inc.
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Intel Corporation
*Disclaimer: Major Players sorted in no particular order
China Logic Integrated Circuits Market News
- March 2024: Toshiba Electronic Devices & Storage Corporation initiated volume shipments of its Smart MCD Series gate driver I.C.s, incorporating an embedded microcontroller (MCU). The first product in this series, TB9M003FG, is designed for sensorless control of three-phase brushless D.C. motors, typically used in automotive applications. This integration will enable advanced and complex motor control across a diverse range of automotive applications, all while reducing system sizes and component counts.
- November 2023: NXP introduced an advanced I.C., elevating performance and safety in E.V.s and energy storage. NXP's latest controller boasts an impressive 0.8 mV cell measurement accuracy, ensuring robust design for extended lifetimes. This innovation bolsters battery management systems and optimizes the capacity and safety of Li-ion batteries in e-mobility and energy storage. The comprehensive design package, featuring production-grade software and functional safety libraries, accelerates the development of functional safety systems and reduces bill-of-material costs.
China Logic Integrated Circuits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for Smartphones, Laptops, Tablets
5.1.2 Increasing Focus on Device Integration
5.2 Market Restraint
5.2.1 Complexity Associated with Logic IC Design
6. MARKET SEGMENTATION
6.1 By IC Type
6.1.1 Digital Bipolar
6.1.2 MOS Logic
6.1.2.1 MOS General Purpose
6.1.2.2 MOS Gate Arrays
6.1.2.3 MOS Drivers/Controllers
6.1.2.4 MOS Standard Cells
6.1.2.5 MOS Special Purpose
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 IT and Communication
6.2.4 Computer
6.2.5 Other Applications
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 STMicroelectronics N.V.
7.1.2 Texas Instruments Inc
7.1.3 Renesas Electronics Corporation
7.1.4 Analog Devices Inc.
7.1.5 Intel Corporation
7.1.6 Broadcom Inc.
7.1.7 Diodes Incorporated
7.1.8 NXP Semiconductors N.V.
7.1.9 Toshiba Corporation
7.1.10 On Semiconductor Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
China Logic Integrated Circuits Industry Segmentation
Logic Integrated Circuits (ICs) are semiconductor devices that perform basic logical operations on digital input signals to produce digital output signals. They are a core component of logic circuits widely used in various applications, including digital electronics, computers, and communication systems. These ICs operate based on logic levels, which are voltage ranges corresponding to logical conditions. These levels determine whether a signal is interpreted as a high or low state. It is essential for communicating ICs to use the same logic levels to ensure proper communication and avoid potential issues.
The study tracks the revenue accrued through the sale of logic integrated cicruits products by various players in China. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The China logic integrated circuits market is segmented by IC type (digital bipolar, MOS logic [MOS general purpose, MOS gate arrays, MOS drivers/controllers, MOS standard cells, and MOS special purpose]), and by application (consumer electronics, automotive, IT and communication, computer, and other applications). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By IC Type | |||||||
| Digital Bipolar | |||||||
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| By Application | |
| Consumer Electronics | |
| Automotive | |
| IT and Communication | |
| Computer | |
| Other Applications |
China Logic Integrated Circuits Market Research FAQs
How big is the China Logic Integrated Circuits Market?
The China Logic Integrated Circuits Market size is expected to reach USD 64.82 billion in 2024 and grow at a CAGR of 8.80% to reach USD 98.81 billion by 2029.
What is the current China Logic Integrated Circuits Market size?
In 2024, the China Logic Integrated Circuits Market size is expected to reach USD 64.82 billion.
Who are the key players in China Logic Integrated Circuits Market?
STMicroelectronics N.V., Texas Instruments Inc, Renesas Electronics Corporation, Analog Devices Inc. and Intel Corporation are the major companies operating in the China Logic Integrated Circuits Market.
What years does this China Logic Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the China Logic Integrated Circuits Market size was estimated at USD 59.12 billion. The report covers the China Logic Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Logic Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Logic Integrated Circuits Industry Report
Statistics for the 2024 China Logic Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. China Logic Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
