With the announcement of the 2024 China Top 500 Enterprises list (released by the China Enterprise Confederation on September 11, see the full list at the end of the article), we have once again witnessed the outstanding achievements of Chinese enterprises in the field of technological innovation and industrial upgrading. This not only demonstrates the comprehensive strength of various enterprises, but also a vivid portrayal of the sustained and healthy development of China's economy. In this list, the semiconductor industry is particularly eye-catching, highlighting its indispensable role in promoting China's transformation from a manufacturing power to a manufacturing power.
1. Enterprise scale and economic growth
First of all, from the perspective of overall scale, the total operating income of China's top 500 enterprises in 2024 will exceed the 110 trillion yuan mark for the first time, reaching 110.07 trillion yuan, a year-on-year increase of 1.58%. This achievement not only demonstrates the overall strength of Chinese enterprises, but also confirms the steady development momentum of China's economy. In this process, the semiconductor industry has made a significant contribution. Taking TCL Zhonghuan Renewable Energy Technology as an example, as a leading enterprise in the field of semiconductor materials in China, its operating income exceeded 10 billion yuan, showing strong growth potential, highlighting China's competitiveness in the field of high-tech manufacturing.
2. driven by technological innovation
In terms of technological innovation, the total R&D investment of China's top 500 enterprises will reach 1.8 trillion yuan in 2024, a year-on-year increase of 14.89%, and the R&D intensity will hit a record high of 1.90%. This seventh consecutive year of growth shows that Chinese enterprises are increasingly focusing on improving their competitiveness through technological innovation, especially in core technology areas. The semiconductor industry is particularly prominent in this regard, with companies such as HiSilicon and Unigroup Microelectronics increasing R&D investment in the field of integrated circuit design and high-end chips. By breaking through key technical barriers, HiSilicon not only provides its own strong competitiveness, but also lays the foundation for the long-term development of China's semiconductor industry.
Figure: Top 500 Chinese enterprises in 2024 have invested a total of 1.81 trillion yuan in R&D
The increase in R&D investment has led to technological breakthroughs in the industry, such as in the field of semiconductor materials and equipment. Local enterprises, such as National Silicon Industry and Jiangsu Nata Opto-electronic Material, have continuously broken through the blockade of foreign technology and improved the localization rate of key materials. This trend not only strengthens China's right to speak in the global semiconductor supply chain, but also further promotes the independent and controllable domestic semiconductor industry.
3. Industrial upgrading and market reshaping
With the continuous increase of national industrial policies, semiconductor companies are actively promoting industrial upgrading and reshaping the global semiconductor market pattern through technological innovation and market adjustment. Especially in terms of domestic substitution, more and more Chinese companies have made important breakthroughs in the fields of high-end chips, semiconductor equipment and materials. For example, the Shanghai silicon industry has gradually weakened the monopoly position of international semiconductor material giants through technological innovation and scale expansion, demonstrating China's rise in the high-tech field.
At the same time, the regional agglomeration effect of China's semiconductor industry is becoming increasingly significant. Guangdong Province has become the province with the highest concentration of semiconductor enterprises in the country, followed by Jiangsu Province. This kind of industrial agglomeration not only drives the collaborative innovation of the upstream and downstream of the industrial chain, but also optimizes the efficiency of resource allocation. The leading role of leading enterprises in the region has further consolidated the international competitiveness of China's semiconductor industry and accelerated the maturity process of the entire industry.
4. policy support and market prospects
Looking ahead, the sustainable development of China's semiconductor industry will be driven by both national policy support and domestic and foreign market demand. For example, the "New Generation Information Technology Development Plan" provides strong policy support for the semiconductor industry, not only in terms of capital and taxation, but also in the introduction of talents, technical cooperation and other aspects of multi-level guarantees. In addition, the country's emphasis on core links such as semiconductor equipment, materials, and chip design will continue to boost the industry's technological breakthroughs and industrial upgrading.
The steady growth of market demand has also injected strong impetus into the future development of China's semiconductor industry. With the rapid development of emerging technologies such as 5G, artificial intelligence, and the Internet of Things, the demand for semiconductor products will continue to increase. According to the forecast of market research institutions, the size of China's semiconductor market is expected to reach US$246.4 billion by 2029, with an average annual growth rate of about 5%. Especially in the field of high-end chip manufacturing, Chinese semiconductor companies are expected to further increase their global market share by virtue of their independent innovation capabilities and large-scale production advantages.
5. The global impact of the semiconductor industry
The rise of China's semiconductor companies is not only reflected in the strong growth of the domestic market, but also gradually affects the pattern of the global semiconductor industry. With the continuous improvement of the localization rate, the importance of Chinese enterprises in the global supply chain has become increasingly prominent. Especially in the context of the restructuring of the global semiconductor supply chain, more and more Chinese enterprises are actively integrating into international cooperation, and through technical cooperation and market development, they have launched more extensive competition and cooperation with their international counterparts.
For example, in recent years, Chinese semiconductor companies have made significant progress in expanding into overseas markets. Chinese semiconductor manufacturing companies, represented by SMIC, have not only improved their production capacity through technical cooperation, but also actively participated in the division of labor in the global supply chain, making important contributions to the diversified development of the global semiconductor market. At the same time, the innovation capabilities of Chinese enterprises in chip design, equipment manufacturing, material supply and other fields have further promoted the technological upgrading and industrial chain restructuring of the global semiconductor industry.
6. Conclusions
Overall, the release of the 2024 list of China's top 500 enterprises demonstrates the strong momentum of Chinese enterprises in technological innovation and industrial upgrading, especially in the semiconductor industry. With the support of national policies, semiconductor companies have become an important force in promoting the high-quality development of China's economy through continuous technological innovation and industrial upgrading. With the intensification of global technology competition and the growth of market demand, the future development prospects of Chinese semiconductor companies are very broad. They will not only promote the continuous upgrading of the domestic industry, but also play a more important role in the global semiconductor market, contributing to global scientific and technological progress and economic prosperity.
Figure: 2024 Top 500 Chinese Enterprises Ranking (Full Version)
