© IC Insights Components | May 27, 2020
China falls far short of its "Made-in-China 2025" goal
IC production in China represented 15.7% of its $125 billion IC market in 2019, up only slightly from 15.1% five years earlier in 2014. IC Insights forecasts that this share will increase by 5.0 percentage points to 20.7% in 2024 (one percentage point per year on average).
A very clear distinction should be made between China’s IC market and indigenous IC production in China. As IC Insights has oftentimes stated, although China has been the largest consuming market for ICs since 2005, it does not necessarily mean that large increases in IC production within China would immediately follow, or ever follow. Of the $19.5 billion worth of ICs manufactured in China last year, China-headquartered companies produced only $7.6 billion (38.7%), accounting for only 6.1% of the country’s $124.6 billion IC market. TSMC, SK Hynix, Samsung, Intel, and other foreign companies that have IC wafer fabs located in China produced the rest. IC Insights estimates that of the $7.6 billion in ICs manufactured by China-based companies, about $1.8 billion was from IDMs and $5.8 billion was from foundries like SMIC. If China-based IC manufacturing rises to $43.0 billion in 2024 as IC Insights forecasts, China-based IC production would still represent only 8.5% of the total forecasted 2024 worldwide IC market of $507.5 billion. Even after adding a significant markup to some of the Chinese foundry producers’ IC sales, China-based IC production is still likely represent only about 10% of the global IC market in 2024. 2019
- Worldwide IC Market ($B) — $358.4
- China IC Market ($B) — $124.6
- % of WW IC Market 5.4%
- % of China IC Market 15.7%
- % of total China IC Production 38.7%
- % of WW IC Market 2.1%
- % of China IC Market 6.1%
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