Market Trends of China Microprocessor (MPU) Industry
Rapidly Growing Demand for Smartphones and Tablets Expected to Fuel the Market Growth
- Consumer demand for smartphones and tablets is expected to proliferate during the forecast period, driving market expansion. A microprocessor boosts a smartphone's speed and effectiveness, which enhances the device's performance. The performance of the microprocessor in any smartphone is directly related to its speed.
- Getui predicts that the size of the Chinese market for 5G smartphones has been growing since 2022, along with the number of active 5G smartphones and market share. The market share of 5G smartphones increased to 38.7% by the end of 2022 from 28.0% at the end of 2021, a growth of 38.2% over the previous year.
- Additionally, with the rise of smart devices, electronic products like televisions, digital cameras, laptops, and wearable devices offer a variety of advanced technologies like flat screens, touch screen monitors and displays, and Bluetooth, which call for more integrated circuits (ICs) and microprocessors.
- Furthermore, microprocessors, which are present in all smartphones, enable them to carry out a variety of functions, such as making phone calls, sending text messages, browsing the internet, and using different apps. Smartphones' growing power and capabilities are also due to the incorporation of microprocessors in these devices.
- Additionally, smartphones are now more functional and appealing to consumers due to microprocessors, which made it possible for them to connect to the internet. Email, social media, and online shopping are just a few examples of the uses for smartphones' microprocessors that are made possible by the ability to connect to the internet.
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Automotive Sector Expected to Boost the Microprocessor Market in China
- Microprocessors were initially designed for use in personal computers and servers. These ICs are now utilized in automotive applications, like infotainment systems and advanced Driver-assistance systems (ADAS), to improve connectivity and speed to vehicle systems. The rise in ADAS systems is bringing the demand for microprocessors in the automotive market.
- However, the market volume of sensors in ADAS technologies installed in newly assembled light vehicles in China is anticipated to increase, according to QUBE by just-auto.com. Additionally, it is anticipated that in 2033, the Chinese market for ADAS technology sensors for newly assembled light vehicles is expected to reach almost 1.43 billion units. Such a rise in sensors will also boost the demand for ICs and microprocessors.
- Additionally, China's automakers combat supply chain chaos with internal chips. For instance, Geely Holding Group declared in February 2022 that it had begun producing China's first automotive-grade seven-nanometer system-on-chips. The SE1000 chip was developed by Siengine, a partnership between Geely's EcarX in China's Hubei province and ARM Holdings in the United Kingdom. The ongoing semiconductor shortage that had plagued the global automotive industry since the previous year was something Geely hoped the new business would help to address. It would help the Chinese microprocessor industry.
- Furthermore, Beijing wants China to stop depending on foreign corporations and take a leading role in the global economy. In order to achieve this, it established the National Integrated Circuit Industry Investment Fund, also known as the Big Fund, which has invested in 2,793 entities, the majority of which are semiconductor companies. The Big Fund holds a minority stake in 74 businesses and a total of 74 companies.
- As a result, China has seen a rise in domestic chip companies as Beijing attempts to cut ties with American advanced technology and manage sanctions risks. Chinese semiconductor companies, supported by venture capital, are vying to offer the best alternatives to Nvidia and its contemporaries in the hotly debated field of autonomous driving. Zeekr, the premium electric vehicle brand of China's largest private automaker Geely, was one of the first to sign up. When the chip is put into mass production in 2025, Zeekr intends to use Drive Thor. These elements could increase China's demand for microprocessors.
