China will not help Russia with semiconductors, because it will not be able to cope with demand: statistics
May 24, 2022
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The data shows that Chinese companies only meet 16.7 percent of demand. Their share will rise to 21.2 percent by 2026. Everything else is imported from other countries
The data shows that Chinese companies only meet 16.7 percent of demand. Their share will rise to 21.2 percent by 2026. Everything else is imported from other countries by companies like Samsung, SK Hynix, TSMC and others. This fact, coupled with a global shortage of chips and sanctions, will not allow Russia to replace semiconductor products with Chinese solutions.
What is the situation in the Chinese market?
The IC Insights report includes the current forecast of the world economy for 2022 and detailed market forecasts up to 2026, the ratings of semiconductor suppliers for 2021, an analysis of integrated circuit markets by region, focusing on the Chinese market and other data.
Analysts point out that a very clear distinction should be made between the Chinese integrated circuit market, which includes all manufacturers, both domestic and foreign, and China’s own integrated circuit production.
Although IC Insights has been China’s largest consumer of integrated circuits since 2005, It did not lead to rapid import substitution and significant growth in domestic production..
While China’s integrated circuit production was 12.7 percent in 2011 10 years ago, it accounted for 16.7 percent of the $186.5 billion integrated circuit market in 2021.
IC Insights predicts that this figure will rise to 21.2 percent (average 0.9 percentage points per year, overall plus 4.5 percentage points) by 2026.
Of all the $31.2 billion worth of integrated circuits launched in China last year, $12.3 billion (39.4%) of all integrated circuits were produced by China-based companies, accounting for just 6.6 percent of the country’s total market of $186.5 billion. The rest are produced by TSMC, SK Hynix, Samsung, Intel, UMC and other foreign companies with established circuit board factories in China.
According to IC Insights, if integrated circuit production in China is to grow to $58.2 billion in 2026, the production of these products in the country will still be only a small percentage – 8.1% of the total global market projected for integrated circuits in 2026 by 717. 7 billion dollars.
It is estimated that the production of these products in China will still make up only 10 percent of the global market in 2026.
Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
