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Foreign Investments and Emerging New Concepts to Surge Substantial Growth in China’s Semiconductor Industry

Thursday, August 25, 2016

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FREMONT, CA: The China semiconductor industry is likely to reach USD 157.66 billion by 2020, at a CAGR of 12.8% between 2016 and 2020 according to a report by Research and Markets titled ‘China Semiconductor Industry: Expansion Plans Analysis and Trends’. Integrated Circuit (IC) is expected to hold the largest market share while the market for the automotive end user is predicted to grow at the highest CAGR during the forecast period.

The increase in demand for smart-phones and tablets as well as applications in consumer electronics and the automotive sector is leading to a rise in the logic ICs segment, while the demand for analogue ICs is expected to be driven by the growth in the automotive and telecommunications sector. Easy accessibility and decreasing prices of hybrid and electric cars and growing consumer awareness about fossil fuel pollution, has led to the mounting electronic content in automobiles. Also IoT and intelligent transportation systems (ITS) form the prime factors behind automotive sector contributing to the rising semiconductor content in vehicles.

Investment from foreign players and emerging new concepts, along with the growing demand for semiconductors from major verticals and favourable government initiatives are leading to various opportunities for the growth of the China’s semiconductor industry. The major players in the China semiconductor industry, are listed as, SK Hynix Inc. (South Korea), HiSilicon Technologies Co., Ltd. (China), Semiconductor Manufacturing International Corp. (SMIC) (China), Samsung Electronics Co., Ltd. (South Korea), and Micron Technology Inc. (U.S.).

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