Analyst firm IC Insights has released a 2020 report on the Chinese integrated circuit market. China became the largest regional market for microchips in 2005 and has continued to grow since then. In 2019, its volume in monetary terms amounted to $ 131.3 billion, and in 2020 it increased by another 9% and reached $ 143.4 billion.
IC Insights estimates that 60% of the chips ended up in electronics shipped for export. The remaining 40% were used in products that remained in the country.
The illustration shows the distribution of the Chinese chip market by type over the past three years. It can be seen that the leader is logical microcircuits, which last year accounted for 26% of the market. According to analysts at IC Insights, this segment will remain the largest segment until at least 2025. At the same time, the average annual growth rate during the forecast period will be 10.5%.
The second largest segment – 22.8% – is microcontrollers, and the third is DRAM chips. The size of this segment is 18.8%, and the total DRAM and NAND is 30%.
It is noteworthy that companies headquartered in China produced chips worth only $ 8.3 billion, which is 5.9% of the total market. The rest is accounted for by foreign companies manufacturing semiconductor products in China, including TSMC, SK Hynix, Samsung, UMC, etc.
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