Semiconductors are the strategic backbone of the global digital economy, enabling technologies from smartphones to AI systems. In 2024, the global semiconductor market is projected to reach USD 627.5 billion, reflecting both cyclical growth and deep structural demand.
The industry is driven by AI, IoT, 5G and new energy vehicles (NEVs). Chips have evolved into critical infrastructure and the sector has become a focal point of global technological competition.
Market structure:
- The fabless semiconductor market is led by three U.S. giants, with Nvidia holding over 20% global share, driven by AI accelerator demand.
- Asian manufacturers like Samsung and TSMC dominate in logic processing, memory chips and advanced foundry services.
As the world’s largest chip consumption market, China is evolving from a downstream consumer to an innovation-driven participant. Targets by 2025 include:
- Domestic equipment self-sufficiency >30%;
- AI chip market exceeding RMB 80 billion;
- Rapid adoption of third-generation semiconductors (e.g., SiC) in NEVs and renewables.
Policy support includes tax incentives, procurement priorities and R&D subsidies across the supply chain, from wafer materials to application-level integration. Although export controls and geopolitical risks remain, China’s integrated industrial policy, capital mobilisation and domestic demand are driving fast growth.