- Logic & processors: 40–50%
- Memory: 20–30%
- Power, analogue & discretes: 17–23%
- Optoelectronics & sensors: 12–14%
U.S. players strengthened their lead in 2024, achieving a 56% global market share.
China is no longer the region with the largest demand for semiconductor devices.
China is pushing toward a complete semiconductor ecosystem, analysing self-sufficiency in all respects: capacity expansion, technology positioning, and the evolution of domestic players across all businesses, such as design, wafer manufacturing, assembly& test, and equipment.
“The Chinese government is pushing industry-wide to build a self-sustaining semiconductor ecosystem, while at the same time maintaining an ‘arm’s length’ competitive stance from the U.S. in the emerging AI technology arena,” says Yole’s Pierre Cambou, “ultimately, balancing breadth and focus is the impossible task being asked today of the semiconductor industry in China.
Mainland China continues to act as the world’s consumer electronics hub, with about one-third of all semiconductor devices used in locally assembled electronics systems. This reinforces China’s key role in global demand and incentivises Chinese OEMs to source part of their semiconductor supplies not just locally but now from domestic players.
China’s electronics manufacturing base, traditionally export-driven, has become increasingly supported by domestic consumption. Nevertheless, electronic manufacturing still represents 158% of domestic electronic demand.
Yole finds the following structural trends:
- Foundry capacity has reached 71% of local electronics manufacturing needs, and has already exceeded domestic electronic demand at 112%.
- Equipment localisation is progressing but remains limited, with the potential to reach 52% by 2030.
- China’s domestic device industry could represent 10% of global device revenues by 2030.
- Device revenue from local players is projected to reach US$100 billion by 2030.
- Foundry revenues have grown to $16.4 billion.
- OSAT revenues increased +57% in the last five years.
- Equipment revenue from local players is projected to reach $33 billion by 2030.
- China is building a broad, vertically integrated ecosystem while navigating the challenges of strategic independence, export controls, and global competition across advanced technologies—including AI.
