China's Semiconductor Industry in 2024 Trends, Challenges and Outlook
TapTechNews August 23 news, according to the statistical data of CINNOResearch, from January to June 2024 in China, the investment amount of semiconductor projects is about 738 billion US dollars (including Taiwan region of China, the same below), a year-on-year decrease of 37.5%, and the investment scale of the semiconductor industry shows a decline.
The CINNO report said that in 2024, after a long period of market adjustment in the Chinese semiconductor industry, it gradually shows a trend of recovery and growth. At present, the overall domestic macro economy has stabilized and picked up, and the downstream demand market has been boosted to a certain extent. The market attention in the fields of artificial intelligence, XR and consumer electronics has been continuously increasing. In the first half of 2024, although the domestic semiconductor industry investment amount decreased year-on-year, it also released a signal that the market is becoming more rational. In addition, the acceleration of the construction of domestic wafer factories has brought growth momentum to domestic semiconductor equipment and materials. In the future, with technological innovation breakthroughs and the acceleration of domestic substitution, the domestic semiconductor industry will continue to develop upward.
TapTechNews attached the internal capital细分 flow direction of the semiconductor industry:
From January to June 2024, the main investment funds in the Chinese semiconductor industry mainly flow to:
Wafer manufacturing, with an amount of about 350 billion US dollars, accounting for about 47.7%, a year-on-year decrease of 33.9%;
Chip design investment amount is 155 billion US dollars, accounting for about 21.3%, a year-on-year decrease of 29.8%;
Semiconductor material investment amount is 94 billion US dollars, accounting for about 12.6%, a year-on-year decrease of 55.8%;
Package testing investment amount is 100 billion US dollars, accounting for about 13.6%, a year-on-year decrease of 28.2%;
Semiconductor equipment investment amount is 35 billion US dollars, accounting for about 4.8%, a year-on-year increase of 45.9%.
From the perspective of the geographical distribution of investment in the semiconductor industry, a total of 23 provinces and municipalities (including municipalities directly under the Central Government) are involved. Among them, the investment funds in Taiwan Province and Jiangsu Province account for more than 10%; the top five regions in investment funds account for about 78.6% of the total; from the perspective of the distribution of domestic and foreign funds, the domestic capital accounts for 90.9%, and the Taiwanese capital accounts for 9.1%.
In detail to the semiconductor industry material field, according to the statistical data, from January to June 2024 in the Chinese semiconductor industry investment funds by project category silicon wafer investment accounts for the highest proportion, accounting for about 48.9%, and the investment amount reaches 46 billion US dollars; Sic/Gan investment accounts for about 16.9%, and the investment amount reaches 16 billion US dollars.
In general, as the semiconductor product inventory gradually returns to a reasonable level and the terminal market demand gradually warms up, especially the increase in semiconductor demand in the fields of smartphones, servers, automobiles and PCs, as well as the rapid development of AI and the Internet of Things, the global semiconductor industry prosperity will gradually recover and re-enter the development channel of steady growth. Although there are still uncertainties and challenges in the future, but still hold a positive and optimistic attitude towards the overall development prospect.