September 18, 2024 – China’s semiconductor industry is experiencing a resurgence, emerging from a downturn and entering a phase of gradual recovery. Driven by increasing downstream demand, more than 30 semiconductor-related projects are accelerating across various stages, from contract signing to construction, topping-out, and production.
These projects span a wide range of areas, including EDA, AI, advanced packaging, materials, equipment, third-generation semiconductors, chip design, CMOS sensors, and memory. Leading companies involved include Huahong, Semitronix, YASC, Skyverse, Hoshine, Smartsens, Sanan Semiconductor, and CFMEE, among others.
The industry’s resurgence is reflected in the improved revenue performance of companies in the middle and upper reaches of the integrated circuit industry. AI is emerging as a key driver of revenue growth, with increasing demand for acceleration chips such as GPU/HBM. Sub-sectors like advanced packaging and equipment/materials related to the industrial chain are also experiencing growth.
The rise of new energy vehicles is driving the popularity of third-generation semiconductor materials, leading to high demand for power devices like silicon carbide (SiC). TrendForce reports that SiC is experiencing accelerated penetration in application markets such as automobiles and renewable energy, where power density and efficiency are critical.
The global SiC Power Device market is projected to reach US$9.17 billion by 2028, indicating a strong growth trend in the coming years.
This surge in activity signifies a positive outlook for China’s semiconductor industry. The government’s continued support and the increasing demand for semiconductors across various sectors are creating a favorable environment for growth and innovation.
(Photo credit: Huahong)
