China's chip technology is far below the 'Made in China 2025' goal.
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A Kunpeng 920 chipset designed by Huawei's HiSilicon subsidiary is on display at Huawei Technologies' headquarters in Shenzhen, China. © Reuters |
According to a study,
domestic chip production until 2024 will only meet 21% of domestic demand.
Chips made in China will
only account for 20.7% of the domestic market by 2024, lower than the 70%
target in the "Made in China 2025" initiative, according to US
research firm IC Insights.
China-based integrated
circuit manufacturing, which includes central processors and memory chips, is
expected to more than double by value from 2019 to 2024 to $ 43 billion, or
about 8, 5% of the global market.
The forecast for 17% annual
compound growth during this period is given in the context of the country
producing chips in their home countries because the United States suppresses
Chinese technology giants, especially Huawei Technologies, not for relying on
American chips.
But the world's largest
chip market is expected to reach $ 208 billion by 2024, IC Insights said.
Companies based outside of
mainland China, including Samsung Electronics, Intel and Taiwan Semiconductor
Manufacturing Company, have produced more than 60% of Chinese-made integrated
circuits by value by year. 2019. IC Insights says they account for at least
half of China's output by 2024.
Sino-US technological
tensions could spur China to accelerate efforts to increase
self-sufficiency. With Washington tightening restrictions on chip
shipments to Huawei, Shanghai-based semi-conductor company, Huawei's supplier
is stepping up its capital investment to help fill the void.
But it seems that the road
is still too far.
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