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Yahoo
2 days ago
- Automotive
- Yahoo
Rising Global Demand and Strategic Export Through Hong Kong Trade Hub Fueling Expansion
In 2024, China's automotive semiconductor exports hit USD 419.15 billion, propelled by the rise in autonomous and electric vehicles. The sector is fueled by significant investments from top domestic companies such as SMIC, Huawei's HiSilicon, and BYD Semiconductor, alongside global giants like Intel and Samsung. Government support and funding, including the National Integrated Circuit Industry Investment Fund, aid market growth. Memory chips rank as the second-largest segment, crucial for AI and automotive applications. India is a major importer, driving demand with its booming electronics market. The report delves into export trends, market dynamics, and key industry players. Chinese Semiconductor Market for Automotive Dublin, July 29, 2025 (GLOBE NEWSWIRE) -- The "China Semiconductor Market for Automotive by Component (Microcontroller, Power Semiconductor, Sensor & MEMS Device, Memory Chip, Analog & Mixed Signal IC), Global & China Semiconductor Export, Alternate Destination - Trends and Strategic Recommendation" report has been added to 2024, China's exports of automotive semiconductors reached USD 419.15 billion in 2024, from USD 280.81 billion in 2020, with a CAGR of 8.9%, driven by increased sales of autonomous and electric vehicles. The report provides valuable information for market leaders and new entrants regarding revenue estimates for both the overall automotive semiconductor market in China and its sub-segments. It will assist stakeholders in understanding the competitive landscape, positioning their businesses more effectively, and planning appropriate go-to-market strategies. Additionally, the report offers insights into the current market conditions and highlights key drivers, restraints, challenges, and opportunities within the industry. China's semiconductor market for the automotive sector is experiencing substantial investment from both domestic and global companies. Major players such as SMIC, Huawei's HiSilicon, YMTC, BYD Semiconductor, and Tsinghua Unigroup are leading domestic efforts, while international firms like Intel, Samsung, and SK Hynix are expanding their presence through joint ventures and new fabrication plants. The Chinese government supports the market with the National Integrated Circuit Industry Investment Fund (Big Fund), local government funds, subsidies, tax breaks, and low-interest loans, all aimed at achieving self-sufficiency and a complete supply global demand for advanced electronics and automotive technologies surges, China exports semiconductors worldwide, often using Hong Kong as a trade hub. The rise of modern vehicles, primarily electric and connected cars, has significantly increased the demand for semiconductors, as these vehicles require advanced chips for powertrain control, advanced driver assistance, infotainment, and battery management. Consequently, the automotive sector has become a key driver of semiconductor growth in chips are the second-largest segment in China's automotive semiconductor chips rank second in the Chinese automotive semiconductor market. These chips also hold the second-largest position in the global semiconductor industry due to soaring demand for data storage and processing, driven by AI, data centers, consumer electronics, and advanced automotive technologies. Memory chips are vital for storing and retrieving data in electronic devices, enabling everything from application execution to real-time system operations - an essential requirement for modern vehicles that rely on significant amounts of data for infotainment, ADAS, and autonomous driving features. Memory chips are extensively used in high-end infotainment systems, ADAS, and digital instrument clusters in and autonomous vehicles demand even more memory due to their complex computing and data processing needs. China is focusing on boosting domestic production of mature-node chips while also making significant advancements in advanced memory technology, particularly in NAND and DRAM, with companies like YMTC and CXMT leading the way. YMTC has developed advanced 3D TLC NAND chips that compete with global leaders like Samsung and Micron, while CXMT has produced and released G4 DDR5 DRAM. SMIC has also manufactured 7 nm chips for Huawei's Mate 60 is the second-largest importer of semiconductors from is the second-largest importer of electronics, integrated circuits, and memory chips worldwide. This is primarily due to the country's robust electronics sector, digitalization, and the lack of large-scale domestic semiconductor manufacturing. In 2024, imports of electronic integrated circuits from China alone reached USD 6.1 million. These components are essential in the automotive sector for advanced features such as infotainment, ADAS, telematics, and digital instrument clusters, which require significant memory and processing power. The Indian market for advanced automotive features is rapidly growing, driven by rising consumer demand for connectivity, safety, and adoption of EVs and connected cars is accelerating, supported by government initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Investment in India's electronics and semiconductor ecosystem is also on the rise, with both domestic and international companies expanding production and R&D. The government has launched incentive programs such as the Production-Linked Incentive (PLI) scheme for electronics manufacturing, further increasing demand for imported memory and integrated circuits as local supply struggles to keep pace. Recent examples include automakers like Tata Motors and Mahindra integrating more sophisticated electronics into their latest models, reflecting the broader trend of technology-driven growth in India's automotive and electronics Coverage:The report provides an in-depth analysis of the China semiconductor market for automotive, focusing on various types, including microcontrollers, power semiconductors, sensors & MEMS devices, memory chips, and analog & mixed-signal integrated circuits. It examines export trends, the impact of trade policies and restrictions, and the diversification of the semiconductor industry away from China. The report also explores alternative manufacturing destinations, offering a comparative analysis of these locations, along with the challenges and strategies associated with the the report assesses the effects of the global automotive sector on the semiconductor market and presents a future outlook. It includes detailed information about the major factors driving growth in China's semiconductor market. A thorough analysis of key industry players provides insights into their business overviews, product offerings, key strategies, contracts, partnerships, agreements, new product launches, mergers, and report provides insights into the following points: Analysis of critical drivers (increased domestic investments in semiconductors), restraints (shortage of manufacturing facilities for 12 mm machines), opportunities (substantial investments by < 12-inch wafer manufacturers), and challenges (technological gap) influencing the growth of the China semiconductor market for automotive Product Development/Innovation: Detailed insights into upcoming technologies and new products launched in the China semiconductor market for automotive Market Development: Comprehensive market information - the report analyses the authentication and brand protection market across Chinese countries Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the China semiconductor market for automotive Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players, such as SMIC, GigaDevice Semiconductor Inc., Novosense Microelectronics, Silan Microelectronics, and HiSilicon Key Attributes: Report Attribute Details No. of Pages 104 Forecast Period 2020 - 2024 Estimated Market Value (USD) in 2020 $280.81 Billion Forecasted Market Value (USD) by 2024 $419.15 Billion Compound Annual Growth Rate 8.9% Regions Covered China, Global Key Topics Covered: 1 Introduction1.1 Global Automotive Semiconductor Industry Overview1.2 Historical Development of China Automotive Semiconductor Industry1.3 Key Factors Driving Industry Shift from China1.3.1 Regulatory Factors1.3.1.1 Restrictive Controls by Us Government1.3.1.2 Chips Act and Other Global Legislation1.3.1.3 National Security Concerns1.3.2 Geopolitical Factors1.3.2.1 Taiwan Strait Tensions1.3.2.2 Russia-Ukraine War1.3.2.3 Technology Alliances1.3.2.4 Technology Limitations1.3.3 Economic and Supply Chain Factors1.3.3.1 Rising Manufacturing Costs in China1.3.3.2 Incentives from Alternative Locations1.3.4 Challenges1.3.4.1 Dependency on Foreign Ip & Architecture and Gaps in Certification1.3.4.2 Heavy Reliance on Imported Semiconductor Manufacturing Equipment2 China Automotive Semiconductor Industry2.1 Current State of China's Automotive Semiconductors2.1.1 Microcontrollers2.1.1.1 Key Manufacturers, Core Competencies, and Production Capacities2.1.1.2 Future Roadmap2.1.2 Power Semiconductors2.1.3 Sensors & Mems2.1.4 Memory Chips2.1.5 Analog & Mixed-Signal Integrated Circuits2.2 Market Value Assessment3 Key Players in China Automotive Semiconductor Industry3.1 Domestic Manufacturers3.1.1 SMIC3.1.1.1 Overview3.1.1.2 Recent Financials3.1.1.3 Production Plants and Capacity3.1.1.4 Future Strategy3.1.2 Gigadevice3.1.3 Novosense Microelectronics3.1.4 Silan Microelectronics3.1.5 Hisilicon3.1.6 Hua Hong Semiconductor Limited3.1.7 Byd Semiconductor3.1.8 Nexperia3.1.9 Changxin Memory Technologies3.1.10 Yangtze Memory Technologies Corp3.1.11 Goertek Microelectronics Inc.3.1.12 China Resources Microelectronics Limited3.1.13 Hesai Technology3.2 Global Manufacturers in China3.2.1 Nxp Semiconductors3.2.2 Infineon Technologies3.2.3 Stmicroelectronics3.2.4 Texas Instruments3.2.5 Renesas Electronics Corporation3.3 Joint Ventures and Strategic Partnerships4 Export Analysis of China's Automotive Semiconductors4.1 Key Export Product Categories4.2 Global Semiconductor Exports4.3 Exports from China5 Diversification of China Automotive Semiconductor Industry5.1 Geopolitical Factors5.1.1 US-China Trade Tensions5.1.1.1 US-China Tariffs5.1.1.2 Diversification Strategies5.1.2 Technology Export Controls5.1.2.1 Us & Chinese Technology Export Controls5.1.2.2 Impact of Export Controls5.1.3 National Security Concerns5.2 Supply Chain Resilience Strategies5.2.1 Knowledge Gained from COVID-19 Pandemic5.2.1.1 Realization by China After COVID-195.2.1.2 Impact on Global Players5.2.1.3 Shift from Jit to Strategic Resilience5.3 Economic Factors5.3.1 Rising Manufacturing Costs in China5.3.1.1 Cost Comparison5.3.1.2 Bill of Materials5.3.2 Incentive Programs in Alternative Locations5.4 Impact on Global Automotive Industry5.4.1 Effects on Automotive Production Costs5.4.2 Supply Chain Reliability and Resilience5.4.3 Regional Manufacturing Clusters5.4.4 Technology Development and Innovation Patterns6 Alternative Manufacturing Destinations6.1 Overview6.2 Comparative Analysis of Alternative Manufacturing Locations6.2.1 Ranking as Alternatives to China6.3 Technology Dominance, by Country/Region6.4 Southeast Asia6.4.1 Malaysia6.4.1.1 Government Incentives and Support6.4.1.2 Key Diversifications6.4.1.3 Challenges6.4.2 Vietnam6.4.3 Thailand6.4.4 Singapore6.4.5 South Korea6.4.6 Taiwan6.5 North America6.6 Europe6.7 India7 Future Outlook and Recommendations7.1 Projected Industry Shifts, 2025-20307.2 Technology Roadmap7.3 Strategic Recommendations for Industry Stakeholders7.3.1 Diversification7.3.2 Technology7.3.3 Supply ChainFor more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Chinese Semiconductor Market for Automotive CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Nikkei Asia
15-07-2025
- Business
- Nikkei Asia
The final chip challenge: Can China build its own ASML?
CHENG TING-FANG, LAULY LI and SHUNSUKE TABETA In southeastern Beijing, engineers at Semiconductor Manufacturing International Corp., China's top chipmaker, are working around the clock to expand the output of 14-nanometer and even 7-nm chips, just a few generations behind the world's leading chipmakers. Being able to make such advanced chips at all is a major breakthrough for a company that has been laboring under a U.S. blacklisting for five years. But SMIC's mission goes beyond just making the chips. It wants to produce them entirely with Chinese equipment.
Los Angeles Times
15-07-2025
- Business
- Los Angeles Times
The semiconductor race: Why America relies on Taiwan and China wants to catch up
Why are tiny chips making global headlines? Semiconductors, the essential part behind our phones, cars, and even satellites. Without them, artificial intelligence can't compute, electric vehicles won't move, and communication systems would go silent. But while their size is small, the competition to control them is anything but. Who makes them, who designs them, and who depends on whom — these are questions shaping the future of the global economy. The United States leads the world in chip design, with companies like NVIDIA, Intel, and AMD pushing boundaries in AI, gaming, and data processing. However, when it comes to manufacturing, America is a little bit behind. Nearly 90% of the world's most advanced chips are made in Taiwan, not the U.S. (2). That means American innovation still depends on foreign factories — and that dependence has raised serious concerns about national security and economic stability. Taiwan, through TSMC, has become the world's chip factory. With unmatched technological capabilities and a tightly coordinated supply chains, Taiwan produces chips as small as 3 nanometers — thousands of times thinner than a human hair. South Korea, through Samsung, also plays a key role. But Taiwan's dominance in the most advanced chips makes it a critical link in the global tech supply chain. Meanwhile, China has invested billions into building its own chip industry, but it's still years behind. Facing U.S. export bans on key tools and software, China struggles to produce chips smaller than 14 nanometers. While companies like SMIC have made progress, they are not yet competitive with TSMC or Samsung. The Chinese government's ambition is clear — reduce reliance on imports, catch up in manufacturing, and eventually lead in both innovation and scale. But as one report notes, even after years of investment, China still produces only about 16% of the chips it needs, relying heavily on foreign suppliers to meet domestic demand. The question remains: how long will it take for China to catch up, or will it ever? While China is making significant progress, limits remain clear. According to Rest of World, China heavily subsidizes its semiconductor industry, achieving breakthroughs in chip design and memory—such as HiSilicon's Ascend series and YMTC's 294-layer NAND chips—but still lags far behind in chip production equipment, especially lithography. SMIC has produced 7nm chips and is working on 5nm with Huawei, but lacks the EUV machines TSMC uses; its older equipment leads to low yields, high costs, and limited scale. India also notes that SMEE, China's light‑exposure tech, is '15–20 years behind ASML'. Analysts like Chris Miller argue SMIC is consistently about five years behind TSMC, and while China's chipmakers gradually improve, so do their competitors. So, can China truly catch up? It may narrow some gaps, but closing the lead in design, production tools, and industrial scale will likely take many more years—and may never fully materialize without access to cutting-edge equipment and global partnerships. Semiconductors are not just technology, but as a mirror reflecting a country's capacity and ambition. The U.S. still excels in design, Taiwan leads in manufacturing, and China is fiercely determined to catch up—yet real bottlenecks remain. In a world shaped by AI, chips define more than tools; they outline our future. Related
Yahoo
10-07-2025
- Business
- Yahoo
Huawei's 7nm Chip Stalls Expose China's AI Weakness--While Rivals Race Ahead
Huawei's latest foldable MateBook looks sleekbut under the hood, it's running on old tech. The chip inside? A 7nm processor made by SMIC, China's top foundry. Same tech Huawei used back in 2023 for its Mate 60 Pro. According to TechInsights, there's been no real breakthrough since. That puts Huawei three generations behind Taiwan Semiconductor Manufacturing Co., which is gearing up to mass-produce 2nm chips later this year. The message: despite China's push for self-reliance, catching up in semiconductors is proving harder than expected. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Export controls appear to be doing exactly what they were designed to doslow China down. With ASML still blocked from selling EUV lithography machines to Chinese firms, SMIC hasn't yet cracked scalable 5nm production, which is the entry ticket to high-end AI, cloud, and mobile chips. Washington's restrictions on Nvidia (NASDAQ:NVDA) chips have also kept Huawei boxed out of the training game for top-tier AI models. Even so, Huawei has leaned into homegrown solutions, running its new devices on HarmonyOS and stacking chips to try and bridge the performance gap. But scale is the real testand here's where the ceiling hits. U.S. officials said Huawei could be capped at just 200,000 units of its Ascend AI chip in 2025, a far cry from global AI leaders. Still, founder Ren Zhengfei isn't backing down. In a recent interview, he brushed off the impact of sanctions and pointed to workarounds like chip stacking. Investors watching China's tech race will be asking the obvious question: is that enough to stay in the gameor just enough to survive? This article first appeared on GuruFocus.
Yahoo
09-07-2025
- Business
- Yahoo
Huawei's 7nm Chip Stalls Expose China's AI Weakness--While Rivals Race Ahead
Huawei's latest foldable MateBook looks sleekbut under the hood, it's running on old tech. The chip inside? A 7nm processor made by SMIC, China's top foundry. Same tech Huawei used back in 2023 for its Mate 60 Pro. According to TechInsights, there's been no real breakthrough since. That puts Huawei three generations behind Taiwan Semiconductor Manufacturing Co., which is gearing up to mass-produce 2nm chips later this year. The message: despite China's push for self-reliance, catching up in semiconductors is proving harder than expected. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Export controls appear to be doing exactly what they were designed to doslow China down. With ASML still blocked from selling EUV lithography machines to Chinese firms, SMIC hasn't yet cracked scalable 5nm production, which is the entry ticket to high-end AI, cloud, and mobile chips. Washington's restrictions on Nvidia (NASDAQ:NVDA) chips have also kept Huawei boxed out of the training game for top-tier AI models. Even so, Huawei has leaned into homegrown solutions, running its new devices on HarmonyOS and stacking chips to try and bridge the performance gap. But scale is the real testand here's where the ceiling hits. U.S. officials said Huawei could be capped at just 200,000 units of its Ascend AI chip in 2025, a far cry from global AI leaders. Still, founder Ren Zhengfei isn't backing down. In a recent interview, he brushed off the impact of sanctions and pointed to workarounds like chip stacking. Investors watching China's tech race will be asking the obvious question: is that enough to stay in the gameor just enough to survive? This article first appeared on GuruFocus.
