The totally different sectors of the semiconductor business are clearly outlined with particular work, and due to this fact every sector’s self-sufficiency charge have to be checked out in their very own proper. The that means of “Made in China” would imply little if seen in a complicated perspective. Lumping collectively the manufacturing values of IC design, manufacturing, and packaging and testing can solely present a clue to the complete scale of the semiconductor business, to not its self-sufficiency.
According to IC Insights’ numbers, the manufacturing worth of wafer manufacturing at fabs in China – together with these run by native and overseas buyers – was US$23.7 billion in 2018. Compared to the worldwide semiconductor market’s quantity of US$430.Eight billion, China’s semiconductor business solely had a world market share of 5.5%. Compared to China’s total demand for semiconductor of US$251.1 billion, the native manufacturing accounted for under 9.4%. But if solely demand from native gamers akin to Huawei, Lenovo and Xiaomi is considered, the native manufacturing’s contribution will rise to 15.2%.
As the federal government of China has been aggressively pushing its semiconductor growth, the native business’s manufacturing worth is predicted to rise to US$47 billion by 2023 if no main exterior influences get entangled. Compared to the worldwide semiconductor business’s US$571.Four billion, China’s share will choose as much as 8.23%. However, the analysis agency signifies that the growths will probably be pushed by Wuhan Xinxin Semiconductor Manufacturing in addition to corporations within the “Others” part in its findings, and it doesn’t point out how the US-China commerce tensions might have an effect on China’s semiconductor business, which means that the result remains to be unpredictable.
As for China’s Made in China 2025 undertaking, which units the objective of attaining a self-sufficiency manufacturing charge of 40% by 2020 for its semiconductor business and 70% by 2025, it will be somewhat tough to perform judging from the present developments.
(Note: This is a part of a sequence of articles by Digitimes president Colley Hwang on the newest developments of the IT business within the wake of the US-China commerce conflict.)
