China Set to Become the World’s Largest Semiconductor Foundry by 2030, Overtaking South Korea and Taiwan in Production Capacity

China’s semiconductor industry is experiencing a remarkable acceleration in production capacity, putting it on course to challenge the established leaders in the field, namely South Korea and Taiwan.

Report Highlights China’s Surge in Chip Production Capacity

The competition for dominance in chip manufacturing is intensifying globally, encompassing both technological processes and overall production volume. Following President Trump’s entry into the White House, the United States shifted focus to bolster its domestic semiconductor capabilities. However, a recent report from the Yole Group reveals that China is quietly but decisively ramping up its foundry output, currently ranking third worldwide, trailing behind South Korea and Taiwan.

Significantly, the Yole Group predicts that China’s foundry production capacity could surpass its competitors by 2030. This projection suggests a rapid scaling of production lines among Chinese manufacturers. Although in terms of process technology, China still lags by approximately five to ten years, state-supported SMIC has reportedly made progress by successfully implementing 6nm technology, with ongoing efforts to advance to 5nm and beyond.

China's In-House Chips Are Said To Be Just Three Years Behind TSMC, US Curbs Show Little Impact 1

Since the US started the semiconductor trade war, China has been accelerating the establishment of an independent ecosystem. China is rapidly emerging as a central country in the foundry market.– Yole Group

China’s focus on enhancing its semiconductor production capacity reflects a broader aim for self-sufficiency. While the country is currently limited to older manufacturing nodes, its future ambitions indicate a desire to exert greater influence in the global semiconductor sector. Notably, ASML’s CEO previously remarked that Europe relies on mature nodes from China, highlighting that US export restrictions are complicating semiconductor access for critical industries like automotive in Europe.

It is anticipated that by 2030, China’s share of the global foundry market could climb to 30%, potentially eclipsing the output of current industry leaders. With swift advancements in semiconductor technology, China is poised to compete vigorously on the global stage for leadership in advanced node production.

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