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Semiconductor Manufacturing in China - Market Research Report (2014-2029)

IBISWorld IBISWorld Beijing, China Last Updated: May 2024 4052

Revenue

$94.6bn

2024

$96.9bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

199k

Businesses

547

Wages

$X.Xbn

Semiconductor Manufacturing in China industry analysis

Over the five years through 2023, revenue for the Semiconductor Manufacturing industry is expected to grow at an annualized 2.5% per year, to increase to $94.6 billion. This includes anticipated growth of 2.6% in the current year. Although the industry developed steadily in the years through 2023, revenue growth has fallen due to a slowdown in the global economy.International trade is very important to the Semiconductor Manufacturing industry in China. In 2023, exports account for 42.5% of industry revenue, to total $40.2 billion. Competing imports total an estimated $28.1 billion and account for 34.0% of domestic demand. Although imports as a share of domestic demand have been decreasing over the past five years, technical and quality differences between domestically manufactured and foreign semiconductors continue to limit the industry's growth.A large proportion of companies involved in the industry are small or medium in and the majority of semiconductors manufactured by Chinese enterprises are low-end products with low technology. To better satisfy domestic demand, domestic manufacturers will have to enhance their research and development (R&D) capabilities and expand output.ACMR-IBISWorld forecasts that in the next five years, industry revenue will increase 2.0% annually to $104.5 billion in 2028. The main drivers of industry growth will be steady increases in overall demand, gradual growth in demand from downstream domestic industries and increasing demand for the industry's exports. The main markets for semiconductor devices will remain the computer and peripheral equipment manufacturing industries and the network communications industries. In addition to these markets, however, there will be new fields of application, including lighting, industrial automation, meters, medical electrons, automobile electrons and displays.

Trends and Insights

  • Industry revenue has been growing steadily during recent five years. A large proportion of companies involved in the industry are small or medium in and the majority of semiconductors manufactured by Chinese enterprises are low-end products with low technology.
  • Power transistors are main product segment of the industry. The power transistors segment is expected to grow in the next five years as downstream industries continue to develop.
  • Southern China contributed the most industry revenue. Provinces in south China has benefit for importing raw materials and exporting end products.
  • One of the main ways that firms compete against each other is on the price of their products. In recent years, semiconductor device manufacturers have been forced to partly absorb pricing increases from the rising cost of silicon chips.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.5 % over the past five years, to reach an estimated $94.6bn in 2024.

Trends and Insights

China is main producer of the industry

  • China is one of the largest manufacturers of semiconductor devices. However, major differences remain between the operations of local manufacturers and their foreign counterparts.
  • Additional trends and insights available with purchase
Semiconductor Manufacturing in China
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Technology improvement promotes industry development

  • As the technology and quality of Chinese products is expected to improve and price levels to remain competitive, demand from foreign countries will increase, and China will maintain its position as one of the largest manufacturers of semiconductor devices in the world.

Biggest companies in the Semiconductor Manufacturing in China

Company
Market Share (%)
2023
Revenue ($short_0)
2023

There are no companies that hold a large enough market share in the Semiconductor Manufacturing in China industry for IBISWorld to include in this product.

Products & Services Segmentation

Semiconductor Manufacturing in China
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Power transistors, Photodiodes and Diodes . Power transistors is the largest segment of the Semiconductor Manufacturing in China.

Trends and Insights

Power transistors are the largest product segment of the industry

  • The power transistor segment is the main product segment in the industry, accounting for 38.8% of revenue in 2023.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Semiconductor Manufacturing industry manufactures semiconductors and electronic devices, including diodes, triodes transistors, power transistors, transducers and sense devices. Industry firms may also manufacture special parts for these electronic devices.

What's included in this industry?

Power transistorsPhotodiodesDiodesTriodesSpecial parts for semiconductor devices and other semiconductor devices

Companies

Purchase this report to view all major companies in this industry.

Related Terms

FABFABLESSSEMICONDUCTOR

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Industry revenue has been growing steadily during recent five years. A large proportion of companies involved in the industry are small or medium in and the majority of semic...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Power transistors are main product segment of the industry. The power transistors segment is expected to grow in the next five years as downstream industries continue to deve...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Southern China contributed the most industry revenue. Provinces in south China has benefit for importing raw materials and exporting end products.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

One of the main ways that firms compete against each other is on the price of their products. In recent years, semiconductor device manufacturers have been forced to partly a...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Most of the industry's large-scaled participants are foreign companies, which have advanced technology and marketing strategy.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    China is not as competitive in terms of advanced technology and quality. Some domestic manufacturers utilize lower technology levels. These firms are often unable to produce ...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Industry profit has been stable. The profit level of some large enterprises with technology and scale advantages is higher than the general profit level of the whole industry...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Semiconductor Manufacturing industry in China in 2024?

    The market size of the Semiconductor Manufacturing industry in China is $94.6bn in 2024.

    How many businesses are there in the Semiconductor Manufacturing in China industry in 2024?

    There are 547 businesses in the Semiconductor Manufacturing industry in China, which has grown at a CAGR of 1.0 % between 2019 and 2024.

    Has the Semiconductor Manufacturing industry in China grown or declined over the past 5 years?

    The market size of the Semiconductor Manufacturing industry in China has been growing at a CAGR of 2.5 % between 2019 and 2024.

    What is the forecast growth of the Semiconductor Manufacturing industry in China over the next 5 years?

    Over the next five years, the Semiconductor Manufacturing industry in China is expected to grow.

    What does the Semiconductor Manufacturing in China include?

    Power transistors and Photodiodes are part of the Semiconductor Manufacturing industry.

    How competitive is the Semiconductor Manufacturing industry in China?

    The level of competition is high and increasing in the Semiconductor Manufacturing industry in China.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • There are no industries to display.

    Complementors

    • Integrated Circuit Manufacturing in China
    • Solar Panel Manufacturing in China

    International industries

    • Global Semiconductor & Electronic Parts Manufacturing
    • Semiconductor & Circuit Manufacturing in the US
    • Semiconductor & Other Electronic Component Manufacturing in Canada
    • Audio Visual Electronic Equipment Manufacturing in Australia
    • Electronic Component Manufacturing in the UK

    View all industries in China

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in China include:

    • National Bureau of Statistics China
    • General Administration of Customs
    • People’s Bank of China

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

    Learn more about our methodology and data sourcing on the Help Center.