Semiconductors - China

China

Revenue in the Semiconductors market is projected to reach US$177.80bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$148.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.51%, resulting in a market volume of US$280.00bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

Region

Region comparison

Currency

Analyst Opinion

The Semiconductors market in China has experienced significant growth in recent years, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Chinese consumers have shown a strong preference for electronic devices, such as smartphones, tablets, and laptops, which rely heavily on semiconductors. The demand for these devices has been growing rapidly, leading to an increased need for semiconductors in the market. Additionally, Chinese consumers are increasingly looking for high-quality, technologically advanced products, which further drives the demand for semiconductors.

Trends in the market: One of the key trends in the Semiconductors market in China is the increasing focus on research and development (R&D) activities. Chinese companies are investing heavily in R&D to develop innovative semiconductor technologies and products. This trend is driven by the government's push to develop a self-sufficient semiconductor industry and reduce reliance on foreign suppliers. As a result, China has seen significant advancements in semiconductor manufacturing, design, and packaging capabilities. Another trend in the market is the growing adoption of artificial intelligence (AI) and Internet of Things (IoT) technologies. These technologies require high-performance semiconductors to enable advanced functionalities and connectivity. Chinese companies are actively investing in AI and IoT, driving the demand for semiconductors that can support these applications. This trend is expected to continue as China aims to become a global leader in AI and IoT.

Local special circumstances: China has a large domestic market with a population of over 1. 4 billion people. This provides a significant customer base for semiconductor manufacturers, driving the demand for semiconductors in the country. Additionally, the Chinese government has implemented policies to support the domestic semiconductor industry, such as providing subsidies and tax incentives. These initiatives have encouraged the growth of local semiconductor companies and attracted foreign investment in the sector.

Underlying macroeconomic factors: China's strong economic growth and rising disposable incomes have contributed to the growth of the Semiconductors market. As the economy continues to expand, more consumers can afford electronic devices, leading to increased demand for semiconductors. Furthermore, China's position as the world's largest manufacturing hub has also contributed to the growth of the semiconductor industry. Many multinational companies have set up manufacturing facilities in China, driving the demand for semiconductors in the country. In conclusion, the Semiconductors market in China is experiencing significant growth due to customer preferences for electronic devices, trends such as increased R&D and adoption of AI and IoT technologies, local special circumstances including a large domestic market and government support, as well as underlying macroeconomic factors such as strong economic growth and China's position as a manufacturing hub. These factors are expected to continue driving the growth of the market in the coming years.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.