With the strong rebound of the global semiconductor industry, Chinese semiconductor companies performed well in the first half of the year. Chinese analysts say Chinese semiconductor companies have made remarkable progress in self-reliance despite the United States' tough crackdown and are becoming more prominent in the global semiconductor industry. The Securities Times reported on Wednesday that 40 of the 68 semiconductor companies that have released their first-half financial reports have reported revenue growth of more than 50%. According to CITIC statistics, there are 157 A-share listed companies in China's semiconductor industry chain. The Securities Times also pointed out that companies focusing on memory chips, contact image sensor chips and system-on-chip products have performed particularly well and achieved significant growth.
These figures illustrate the current state of China's semiconductor industry, which continues to grow steadily thanks to the recovery of the domestic and foreign consumer electronics markets. "Despite the tough sanctions imposed by the United States in recent years, China's semiconductor industry has not only survived, but also thrived. We have seen a significant increase in capacity, especially in the mature process segment, and a significant increase in exports, especially to Southeast Asian markets such as Viet Nam, Malaysia and Indonesia. Ma Jihua, a veteran telecommunications industry observer, told the Global Times on Wednesday.
"This expansion has been a key driver of the recovery of the global consumer electronics industry – reducing costs, improving accessibility, and inspiring innovation across the board," Ma said. "China's contribution to this industry cannot be ignored."
Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Wednesday that China's semiconductor industry is expected to maintain an upward momentum by 2025, driven by multiple factors such as technological innovation, rebounding market demand and policy support.
Figure: Chip making machine (Source: VCG)
For example, Foxconn, Apple's original equipment manufacturing partner, is significantly increasing the number of employees at its Zhengzhou production base in central China's Henan province to ramp up production ahead of the release of Apple's new iPhone. Caijing, a domestic media outlet, reported on Monday that about 84.8 percent of Apple's 230 million smartphones produced annually will be assembled in China, with Foxconn's Henan plant playing a key role.
According to Handelsblatt, a German business news outlet, Christoph ·, CEO of Netherlands lithography system supplier ASML, also said that the world needs "traditional chips" produced in China. Traditional chips use relatively old and less advanced technologies, but analysts believe that most of the demand is still concentrated on traditional chips due to the pyramidal structure of global chip demand.
Ma noted that many Chinese companies are increasingly opting to use Chinese-made chips due to concerns about the possible imposition of sanctions on United States. This trend has not only expanded the market, but also significantly boosted the development of China's semiconductor industry.
"China's dominance in mature semiconductor nodes is growing, with higher volumes and lower production costs. Many United States companies are also increasingly dependent on Chinese products," Mr. Ma said. "In the face of pressure, China's semiconductor industry has not only withstood the challenges, but also demonstrated strong growth potential," he added.
Official data shows that in the first seven months of 2024, China's chip exports reached 640.91 billion yuan ($89.85 billion), a year-on-year increase of 25.8%, a new high.
