Integrated Circuit Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
4053Revenue
$283.3bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
455k
Businesses
764
Wages
$XX.Xbn
Integrated Circuit Manufacturing in China industry analysis
China is the world's largest and fastest-growing integrated circuit market, and is also an important producer and provider of integrated circuits. The Integrated Circuit Manufacturing industry in China is expected to grow at an annualized 11.8% over the five years through 2023 to $283.3 billion, maintaining a sustained and stable growth trend over the period. This includes growth by 9.3% in the current year. The huge demand from terminal application markets like industrial equipment, communication networks, and new energy vehicles has contributed to revenue growth. An increased focus on intellectual property and patents has also promoted revenue growth. Moreover, national support policies have provided a good environment for industry development.The industry exhibits high international trade. Industry exports are expected to reach $150.3 billion in 2023, accounting for 53.0% of industry revenue. Meanwhile, competing imports are expected to reach $375.8 billion, satisfying 73.9% of domestic demand. Both exports and imports in recent years have been greatly affected by the US export controls and restriction measures on China.Historically, most firms in the Integrated Circuit Manufacturing industry in China were foundries, only manufacturing integrated circuits designed by other companies. In recent years, some Chinese firms have started to manufacture integrated circuits from their own designs. As industry technology continues to advance, total revenue is forecast to grow at an annualized 12.5% over the five years through 2028, to reach $510.0 billion.
Trends and Insights
- Vast downstream demand has supported the industry growth. Rapid development of IT sector and emerging industries in China have driven the growing demand for integrated circuits.
- Wafer manufacturing is increasing. With global leading wafer manufacturers setting up fabs in China and the improving production capacity of domestic manufacturers, wafer manufacturing has been increasing as a share of industry revenue.
- The industry is highly regional concentrated. Industry activities are highly dynamic in Jiangsu, Guangdong and Gansu provinces, which are expected to jointly generate 62.2% of industry revenue in 2023.
- The industry concentration level is low. The top four largest participants in the industry have a combined market share of 17.4% in 2023.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 11.7 % over the past five years, to reach an estimated $283.3bn in 2024.
Trends and Insights
Vast and growing downstream market has driven the industry growth
- Integrated circuits, or ICs, are the foundation of IT sector and widely used in various fields, like communications, consumer electronics, automotive electronics, etc.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Expansion of downstream industries will support industry growth
- With the further development of China's IT sector and the emergence of more new advanced technologies, electronic products will be rapidly updated and replaced. The continuous launch of new generation electronic products will promote the demand growth of ICs.
Biggest companies in the Integrated Circuit Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Integrated Circuit Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Packaging and testing, Wafer manufacturing and Other. Packaging and testing is the largest segment of the Integrated Circuit Manufacturing in China.
Trends and Insights
Wafer manufacturing is increasing with the expansion of domestic production capacity
- Wafer manufacturing refers to transplanting a designed circuit diagram onto a wafer through a multi-channel process.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Semiconductor Manufacturing in China
International industries
- Global Semiconductor & Electronic Parts Manufacturing
- Semiconductor & Circuit Manufacturing in the US
- Semiconductor & Other Electronic Component Manufacturing in Canada
- Audio Visual Electronic Equipment Manufacturing in Australia
- Electronic Component Manufacturing in the UK
Table of Contents
About this industry
Industry definition
Businesses in the Integrated Circuit Manufacturing industry manufacture integrated circuits and related devices. Examples of industry products include monolithic integrated circuits, hybrid integrated circuits, assembled electronic modules, micro modules, and other similar modules.
What's included in this industry?
Wafer manufacturingPackaging and testingCompanies
Purchase this report to view all major companies in this industry.
Related Terms
DYNAMIC RANDOM-ACCESS MEMORY (DRAM)INTEGRATED CIRCUIT (IC)INTEGRATED DEVICE MANUFACTURER (IDM)MONOLITHIC INTEGRATED CIRCUITPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Vast downstream demand has supported the industry growth. Rapid development of IT sector and emerging industries in China have driven the growing demand for integrated circui...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Wafer manufacturing is increasing. With global leading wafer manufacturers setting up fabs in China and the improving production capacity of domestic manufacturers, wafer man...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The industry is highly regional concentrated. Industry activities are highly dynamic in Jiangsu, Guangdong and Gansu provinces, which are expected to jointly generate 62.2% o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry concentration level is low. The top four largest participants in the industry have a combined market share of 17.4% in 2023.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Foreign capital dominates the market. The industry is dominated by foreign companies due to their more advanced process technologies and technical level.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Industry operators enjoy tax reduction. The Chinese Government provides tax reduction and exemption for IC companies or projects that meet certain requirements.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profit margins have been volatile. Industry profitability is affected by fluctuations in supply and demand. Chip supply shortage has led to higher average prices and...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Integrated Circuit Manufacturing industry in China in 2024?
The market size of the Integrated Circuit Manufacturing industry in China is $283.3bn in 2024.
How many businesses are there in the Integrated Circuit Manufacturing in China industry in 2024?
There are 764 businesses in the Integrated Circuit Manufacturing industry in China, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Integrated Circuit Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Integrated Circuit Manufacturing industry in China has been growing at a CAGR of 11.7 % between 2019 and 2024.
What is the forecast growth of the Integrated Circuit Manufacturing industry in China over the next 5 years?
Over the next five years, the Integrated Circuit Manufacturing industry in China is expected to grow.
What does the Integrated Circuit Manufacturing in China include?
Wafer manufacturing and Packaging and testing are part of the Integrated Circuit Manufacturing industry.
How competitive is the Integrated Circuit Manufacturing industry in China?
The level of competition is high and increasing in the Integrated Circuit Manufacturing industry in China.
