Overview of China’s Integrated Circuit Industry and Key Domestic Players

Integrated circuits (ICs) are the main component of semiconductors, accounting for over 80% of the semiconductor market. China’s IC industry started relatively late, but after trade sanctions the government introduced a series of policies to accelerate development.

The global IC market is expected to grow more slowly than China’s market, reaching USD 7,478.82 billion by 2026. The IC supply chain—covering EDA, IP, materials, equipment, design, manufacturing, and packaging—is still dominated by foreign companies, resulting in a very low domestic substitution rate.

In the global landscape, the United States holds a significant advantage in EDA/IP, logic chip design, and manufacturing equipment, each accounting for more than 40% of the market. Japan excels in IC materials, while Taiwan and mainland China lead in wafer fabrication and packaging testing.

Key Chinese companies include Huada Jiutian Technology Co., Ltd., the largest domestic EDA vendor with a complete product line, and Semiconductor Manufacturing International Corporation (SMIC), the leading wafer foundry in China and the fifth globally. Shanghai Silicon Industry Group is also a major silicon wafer producer, being the first domestic company to produce 300 mm wafers.

The article is based on the "2022 China Integrated Circuit Industry Research Report" and includes additional promotional material for related technical resources.