China leads global semiconductor market, with record spending on equipment and race to innovate in memory and AI technology
Localizing the semiconductor industry in China is a long-term strategic goal. In recent years, the rate of localization throughout the semiconductor supply chain has gradually increased. However, the current volatile domestic and international environment has further driven the rapid advancement of China’s semiconductor industry.
Semiconductor Equipment Remains in a Golden Age of Development
At present, semiconductor equipment in China generally meets the needs of all stages of the semiconductor manufacturing process (excluding lithography machines). The localization rate and top manufacturers of various types of equipment are shown in the chart above.
According to reports, China is the largest semiconductor equipment market in the world. In the first half of this year, the country spent a record $25 billion on chipmaking tools, surpassing the combined spending of Taiwan, South Korea and the United States.
Responding to the demand for AI: Storage industry seeks innovation and transformation
Chinese memory manufacturers are actively expanding DRAM production capacity to increase their market share. When it comes to specific products, domestic manufacturers are accelerating competition in areas such as DDR4 and LPDDR4.
Meanwhile, the booming AI market continues to drive growing demand for memory. International giants are focusing more on advanced technologies such as DDR5 and HBM, creating opportunities for Chinese DRAM manufacturers. Domestic memory producers are also striving to move toward high-end storage by accelerating research and development in HBM and DDR5 technologies.
Silicon Carbide Accelerates Towards 8-Inch Plow
In the silicon carbide (SiC) sector, manufacturers across the supply chain in China — from materials (substrates/epitaxy) to chips/modules and equipment — are entering the 8-inch SiC market.
According to incomplete statistics from DRAMeXchange, more than 100 Chinese companies have ventured into the SiC field in the past two years, with more than 50 SiC projects expected to make significant progress by 2024.
At present, China has established two large 8-inch SiC wafer production lines. UNT built the first 8-inch SiC MOSFET wafer production line in Shaoxing Yuecheng, while Silan Microelectronics officially launched the country’s first 8-inch SiC power device chip manufacturing project on June 18, with a total investment of RMB 12 billion.
China becomes a growth engine for mature US
According to TrendForce’s latest research, driven by localization trend, domestic smelters in China will become the main driver of mature node growth by 2025. It is estimated that the global capacity of the top 10 mature node smelters will increase by 6 % by 2025, although price trends may face downward pressure.
TrendForce predicts that by the end of 2025, Chinese foundries’ capacity for mature nodes will account for more than 25% of the top 10 global players, with 28/22 nm nodes contributing the largest additional capacity. Additionally, Chinese foundries are advancing special process technologies, particularly the HV platform, with 28nm mass production expected by 2024.
Advanced Packaging Accelerates Adoption of 2.5D and Chiplet Technologies
As the industry approaches the physical limits of transistor density and chip size, advanced packaging technologies such as SiP, WL-CSP, 2.5D, 3D, CoWoS, InFO, Foveros and X-Cub have created new possibilities for the industry of semiconductors. Among them, advances in China’s advanced encapsulation sector are particularly notable.
This year, Chinese companies such as JCET, Tongfu Microelectronics and HT-Tech have made significant investments in advanced packaging projects, achieving remarkable progress.
Furthermore, in the emerging FOPLP advanced packaging technology sector, Chinese companies such as HT-Tech, ECHINT, MIIC and SiPTORY have been actively expanding their presence.
To meet the demands of high-performance chip packaging, the domestic packaging supply chain is also exploring the development of 2.5D packaging technologies and accelerating the implementation of Chiplet technologies.
Innovation in China’s domestic AI technology
China’s AI industry is developing rapidly, with unicorn companies emerging at a rapid pace and the market scale continuing to expand. Representative companies include Infinigence AI, Alibaba Cloud, Baidu, AIsphere, Vastai Technologies, BIRENTECH, and MThreads, among others.
China’s AI industry enjoys significant advantages, including vast industrial scale and broad application demands. Furthermore, China leads globally in AI research production, with the largest number of patents and articles. According to the data, in 2022, China was responsible for 61.1% of all AI patents authorized in the world.
However, the Chinese AI industry faces challenges in breaking away from core fundamental technologies. It lags behind leading global standards, particularly in areas such as model innovation and computational resources. The most critical bottleneck is in AI chips, especially GPUs.
Source: https://www.ocafezinho.com/2024/12/09/china-avanca-cada-vez-mais-no-setor-de-semicondutores/
