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China made only 6% of chips it used in 2020

F-22Raptor

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China produced a scant 5.9% of semiconductors it used in 2020, according to a report published Thursday, indicating significant reliance on foreign technology as the country pushes for independence on chips.

Why it matters: China, the world’s largest semiconductor market, is determined to increase domestic production of chips, and plans to make 70% of chips it uses by 2025.

Details: China’s integrated circuit (IC) market increased 9% to $143.4 billion in 2020 compared with a year earlier, according to a Thursday report by market research firm IC Insights. China-headquartered firms, however, only made $8.3 billion worth of ICs sold in the country in the same year, the report said.

  • Around 15.9% of ICs sold in China in 2020 were made locally, but most of them were made by foreign companies with wafer fabrication plants in the country, such as Taiwan Semiconductors Manufacturing Company, SK Hynix, and Samsung. Together, such firms made around 10% of chips sold in China last year.
  • IC Insights estimated in the report that 60% of semiconductors produced in China were components for exported products. The country is home to some of the largest smartphone makers in the world, including Xiaomi, Huawei, and Oppo.
  • Programmable logic devices, which are used to store the logic pattern integrated onto chips during programming, was the largest segment of China’s IC market in 2020, accounting for 26% of total wafers sold.
  • Strong sales of smartphones and other computing systems during the pandemic drove growth in microprocessors, which was the second-largest IC product segment in China last year, according to IC Insights. The category grew 12% last year to $32.7 billion.
Context: In December, the US added China’s largest chipmaker, Shanghai-based Semiconductors Manufacturing International Corp (SMIC), to an “Entity List” that effectively cut the company off from American technology.

 

JustAnotherPerson

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Well most chips china chips imports are from foreign companies outsourcing manufacturing in china, what will be really interesting it will be share of chips consumed by Chinese companies, how many of those chips are designed and/or manufactured in china. That data will be really interesting if someone have it.
 

qwerrty

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chip plants from big chinese manufacturers are still under construction or just completed 1 fab with low volume trial production. the number will rise quick once they completed multiple fabs and start large scale mass production.
 
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Even the Huawei CEO concedes US chips are the best.
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He never mentioned Apple processors. He mentioned the phone ecosystem and put Huawei as Apple's coequal as innovators in integrating software and hardware, unlike Samsung. Furthermore, he noted that Huawei does things that Apple can't: it makes the networking hardware that Apple runs on, without which an iPhone would just be an expensive paperweight.
 

JustAnotherPerson

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China produced a scant 5.9% of semiconductors it used in 2020, according to a report published Thursday, indicating significant reliance on foreign technology as the country pushes for independence on chips.

Why it matters: China, the world’s largest semiconductor market, is determined to increase domestic production of chips, and plans to make 70% of chips it uses by 2025.

Details: China’s integrated circuit (IC) market increased 9% to $143.4 billion in 2020 compared with a year earlier, according to a Thursday report by market research firm IC Insights. China-headquartered firms, however, only made $8.3 billion worth of ICs sold in the country in the same year, the report said.

  • Around 15.9% of ICs sold in China in 2020 were made locally, but most of them were made by foreign companies with wafer fabrication plants in the country, such as Taiwan Semiconductors Manufacturing Company, SK Hynix, and Samsung. Together, such firms made around 10% of chips sold in China last year.
  • IC Insights estimated in the report that 60% of semiconductors produced in China were components for exported products. The country is home to some of the largest smartphone makers in the world, including Xiaomi, Huawei, and Oppo.
  • Programmable logic devices, which are used to store the logic pattern integrated onto chips during programming, was the largest segment of China’s IC market in 2020, accounting for 26% of total wafers sold.
  • Strong sales of smartphones and other computing systems during the pandemic drove growth in microprocessors, which was the second-largest IC product segment in China last year, according to IC Insights. The category grew 12% last year to $32.7 billion.
Context: In December, the US added China’s largest chipmaker, Shanghai-based Semiconductors Manufacturing International Corp (SMIC), to an “Entity List” that effectively cut the company off from American technology.


thanx for the post
 

Hamartia Antidote

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Well he says apple no US and he was talking about phones not chips, but yes, apple make good quality phones and chipsets.
So why is he suddenly praising the 5G iPhone 12 instead of one of the previous 11 non-5G iPhone models since as Chinese PDF members repeat over and over that "the iPhone 12 brings nothing new to the table other than 5G"...

Interesting that he waited for the 5G model...isn't it....or is he just conceding the iPhone has ALWAYS been the best choice in phones due to its superior proprietary ecosystem.
 
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JustAnotherPerson

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So why is he suddenly praising the 5G iPhone 12 instead of one of the previous 11 non-5G iPhone models since as Chinese PDF members repeat over and over that "the iPhone 12 brings nothing new to the table other than 5G"...

Interesting that he waited for the 5G model...isn't it....
Because i think he is referring to the phone as a whole not just the chipset that Apple won't sell to anyone. Personally i think is a good phone but i dont buy apple products, i dont care how good they are, Apple has this cult like thing that i dont like, i would rather buy an Oppo or a Samsung, but hey that's me, each to their own .
 

CAPRICORN-88

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I guess we will just have to wait and see.
2025 is not too far away and many changes are already seen happening in 2020 Inside China.
Huawei is still around and growing stronger.
SMIC is highly profitable based on last year results. Its order book has filled up for 2021 and it is expanding even more rapidly.
Huawei and ZTE is now the vanguard of China 6G.
The path ahead is accelerating at an unprecedented pace.

:sarcastic: :sarcastic: :sarcastic:
 

beijingwalker

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a year ago the percentage could be 1 percent, China just started, if China can not make something at all, it's a problem, but as soon as China is able to make something, China will be soon to dominate the production. western media only tries to lead you to see things through the perspectives that they design for you, but the whole picture can be very different.
China can barely make a phone a decade ago, and see the situation now.
 

Hamartia Antidote

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a year ago the percentage could be 1 percent, China just started, if China can not make something at all, it's a problem, but as soon as China is able to make something, China will be soon to dominate the production. western media only tries to lead you to see things through the perspectives that they design for you, but the whole picture can be very different.
China can barely make a phone a decade ago, and see the situation now.
You could make Android phones 10 years ago but nobody in the US wanted them
 
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Han Patriot

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Even the Huawei CEO concedes US chips are the best.
.
Apple is just a brand mate, they make nothing.
You could make Android phones 10 years ago but nobody wanted them
That's because US closed their markets fearing competition, if Huawei was given chance, the US market would have been swallowed by Huawei. Loser who can't compete like to play cheat.
 

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