China Semiconductor Device Market Size (2024 - 2029)

China Semiconductor Device Market Analysis

The China Semiconductor Device Market size is estimated at USD 237.24 billion in 2024, and is expected to reach USD 370.41 billion by 2029, growing at a CAGR of 9.32% during the forecast period (2024-2029).

However, as the supply chain gradually recovered in the Q2 of 2020, governments enabled fiscal policies to recover the economy. These factors, combined with the rise of the stay-at-home economy, led to increased restocking demand from downstream clients, boosting semiconductor revenue.

• Also, the semiconductor shortage caused by the COVID-19 pandemic prompted players to focus on increasing production capacity. For instance, the Semiconductor Manufacturing International Corp (SMIC) announced aggressive plans to double its production capacity by 2025 by constructing new chip fabrication plants in various cities, including a September 2021 announcement to establish a new factory in Shanghai's free trade zone.
• According to the Ministry of Industry and Information Technology (MIIT), China aims to have 2 million installed 5G base stations in 2022 to expand the country's next-generation mobile network. The Chinese mainland currently has 1.425 million installed 5G base stations that support more than 500 million 5G users nationwide, making it the most extensive network in the world, as per MIIT. The growing implementation of 5G in the country will increase the uptake of 5G-enabled devices.
• In China, the growth of the studied market can also be attributed to the booming electronics industry. Electronics is one of the largest industries in China and is a significant contributor to the country's overall economic growth. For instance, per the State Council of the People's Republic of China, during the two months from January to February 2022, the added value of major electronics manufacturers rose 12.7% year-on-year, compared with the 7.5% growth in the overall industrial sector in the country. China is the world's leading producer of electronic devices such as TVs, smartphones, laptops and PCs, refrigerators, and air conditioners.
• Additionally, several initiatives have been taken in recent years to boost the industry's growth. For instance, during the second pandemic wave, the Chinese government announced plans to expand the domestic market for electronic components to CNY 2.1 trillion (USD 327 billion) by 2023. The program covers components, materials, and manufacturing equipment used in areas such as smartphones, drones, 5G wireless, connected factories, electric vehicles, robotics, high-speed rail, and aerospace. Specifically, the Chinese government is looking to increase the output of semiconductors, sensors, magnets, fiber-optic equipment, and software, among others. Such initiatives create a positive growth outlook for the studied market.
• Further, the growing adoption of cloud computing in the country is another factor boosting the market growth. According to the China Academy of Information and Communications Technology (CAICT), by 2023, the size of China's cloud computing market will reach CNY 375.42 billion (USD 56.31 billion), increasing by 1.8 times compared with that of 2019, and the CAGR from 2019 to 2023 will be as high as 29.5%.

China Semiconductor Device Industry Segmentation

A semiconductor device is an electronic component that relies on the electronic properties of semiconductor material for its function. Its conductivity lies between conductors and insulators. Semiconductor devices have replaced vacuum tubes in most applications. They conduct electric current in the solid state rather than as free electrons across a vacuum or as free electrons and ions through an ionized gas.

The China semiconductor device market is segmented by device type (discrete semiconductors, optoelectronics, sensors, and integrated circuits [analog, logic, memory, and micro [microprocessors, microcontrollers, and digital signal processors]]) and by end-user vertical (automotive, communication [wired and wireless], consumer electronics, industrial, computing/data storage, and other end-user verticals). The report offers market forecasts and size in value (USD) for all the above segments.