A recent study showed that foreign companies, including Samsung, SK Hynix, TSMC and others, will continue to occupy the lion’s share of China’s integrated circuit market until 2026.
IC Insights has released a new report that includes the current global economic outlook for 2022 and detailed market forecasts through 2026, semiconductor vendor rankings for 2021, analysis of IC markets by region with an additional focus on China, and other data.
Analysts point out that a very clear distinction should be made between the Chinese IC market and China’s own IC manufacturing. IC Insights writes that although China has been the largest consumer of integrated circuits since 2005, this has not resulted in rapid import substitution and significant growth in the production of integrated circuits in China.
Integrated circuit manufacturing in China accounted for 16.7% of its $186.5 billion integrated circuit market in 2021, up from 12.7% 10 years earlier in 2011. Moreover, IC Insights predicts that this share will increase by 4.5 percentage points from 2021 to 21.2% in 2026 (0.9 percentage points per year on average).
Of the $31.2 billion worth of integrated circuits produced in China last year, China-headquartered companies produced $12.3 billion (39.4%), accounting for only 6.6% of the country’s 186 IC market. .5 billion dollars. The rest was produced by TSMC, SK Hynix, Samsung, Intel, UMC and other foreign companies that have integrated circuit wafer factories located in China. Of the 12.3 billion integrated circuits produced by Chinese companies, IC Insights estimates that about $2.7 billion came from IDM and $9.6 billion came from companies like SMIC.
If Chinese integrated circuit manufacturing grows to $58.2 billion in 2026, as IC Insights predicts, Chinese manufacturing of these products will still account for only 8.1% of the total projected global integrated circuit market in 2026 of 717 .7 billion dollars.
It is estimated that Chinese production of these products will likely still represent only about 10% of the global market in 2026.