Market research status of Chinese semiconductor companies in 2023: Opportunities and challenges

Market research status of Chinese semiconductor companies in 2023: Opportunities and challenges

With the rapid development of China's integrated circuit industry and the increasing downstream demand, semiconductor companies are currently facing market opportunities for the upgrading of downstream technology industries such as new energy vehicles, wafer prober the Internet of Things, and intelligent manufacturing, and manufacturers of those industries are actively expanding their markets.

Semiconductor market size

As a result of huge market demand, abundant demographic dividends, probe test stable economic growth, and favorable industrial policy conditions, China's semiconductor industry has grown rapidly in recent years. In 2021, China's semiconductor industry sales increased by 12 percent, from 788.5 billion yuan in 2017 to 1,242.3 billion yuan in 2021. In 2023, the semiconductor market is expected to grow to 150.9 billion yuan.

China Semiconductor Industry Association's Research Institute for Industry and Commerce

New opportunities exist in the semiconductor industry

National industrial policy and industry ushered in a golden era of development.

The rapid expansion of the semiconductor industry is a crucial measure of a country's economic and technological strength. wafer probing The production of wafers is a critical aspect of the global financial technology market, making it a significant area for competition. As such, enhancing China's competitiveness in its information industry related to semiconductors has become a top priority for improving its manufacturing capabilities. In support of this goal, the government has implemented various favorable measures to drive continued growth in the service sector.

The global semiconductor industry has changed, and China's semiconductor industry has grown rapidly

Throughout the history of the semiconductor industry, two major global transfers have taken place. The first was a shift from the United States to Japan in the 1970s, while the second occurred in the 1980s when it moved to South Korea and Taiwan Province of China. These relocations were influenced by a variety of factors, including market demand, national industrial policy, and capital motivation. As a result of these transfers, significant changes were seen within the industry in terms of development direction, task specialization, and resource distribution. This has led to the emergence of new players and stimulated innovative growth throughout the entire sector.

The semiconductor industry is greatly supported by a vast market of end-use applications from various angles. Currently, China stands as the most rapidly growing end-use application industry cluster globally. After years of advancement in high-tech fields such as new energy, display screens, and light-emitting diodes, the Chinese semiconductor industry has risen to a leading position. Through actively promoting the enhancement of various chip products, it has sped up the progress of the domestic semiconductor sector.

The application market has experienced rapid growth, as has the industry market.

As new technologies, such as the Internet of Things, China's mobile network, and artificial intelligence, advance, semiconductor materials are quickly evolving in various industries including industrial management control and automotive electronics. This is a result of upgrades in the industrial structure and continuous technical knowledge updates within the high-tech field. As a result, economies of scale have increased for semiconductor enterprises. For instance, power semiconductors are now twice as important in new energy vehicles as they are in traditional vehicles. Additionally, according to Gartner, there will be a significant increase in globally connected system devices from 13.1 billion in 2020 to 24 billion by 2025 with a compound growth rate of 12.87% in IoT-related fields. This rapid progress in downstream technology and finance industries has become a major driving force for growth within the education industry. With domestic small and medium-sized enterprises continuously learning and improving their core technology innovation and research and development processes, competition within the domestic semiconductor market is expected to expand rapidly.