What is the status of Chinese chips? Chip development analysis Eschips

China's chip market reached $65.8 billion in 2023 and is expected to reach $80 billion in 2025, with an average annual growth rate of about 10 percent, according to market research firm Schaumpur Consulting Group. Within the market segments, automotive electronics, consumer electronics, industrial automation, communications, and computers are the major growth drivers of China's chip market. Among them, the automotive electronics sector is the largest segment, accounting for 20% of the chip market in 2023, and is expected to maintain high growth in the next five years.China's chip market reached $65.8 billion in 2023 and is expected to reach $80 billion in 2025, with an average annual growth rate of about 10 percent, according to market research firm Schaumpur Consulting Group. Within the market segments, automotive electronics, consumer electronics, industrial automation, communications, and computers are the major growth drivers of China's chip market. Among them, the automotive electronics sector is the largest segment, accounting for 20% of the chip market in 2023, and is expected to maintain high growth in the next five years.Although China's chip industry is still in the initial stage of development, but in the context of the rapid growth of the industry, China's chip industry is developing rapidly. Data show that in 2025, the number of global Internet of Things terminal connections will reach 10 billion, until 2050, the number will increase to 50 billion, at least in the next few decades, the demand for chips will only continue to grow, will not decline. Therefore, the development prospects of China's chip industry are huge. However, in terms of technology, China's chip technology is at a backward level compared with the world. China is the largest and most important market for global chip enterprises, the huge market needs to provide development opportunities for global semiconductor manufacturers, but at present, the domestic only has the production environment of low-end chips, production equipment and production level there are obvious defects, resulting in insufficient chip production capacity, IP and architecture discourse power is in the hands of foreign countries. Although the market share of domestic IP providers has increased in recent years, there is still a considerable distance compared with foreign countries. Secondly, domestic products have not been rich, and products have not been effectively improved. At present, the localization of low-end chips is very fast, it has become a red Sea, the competition is quite fierce, the development speed is also very fast, many small home appliance manufacturers have already begun to use domestic chips. However, in the high-end chips, such as mobile phones and computers and other manufacturing processes within 20nm of the chip, it is not so optimistic, many chip manufacturers on the high-end chip research and development is still in the initial stage, after the development of the performance of the gap with foreign high-end chips is not clear, which causes downstream enterprises on the domestic chip trust is not high.
In recent years, China's chip industry is rising rapidly. From being the world's second largest economy to the world's largest chip market, China's chip industry has been developing rapidly. From the promotion of the government's policy of being in the forefront of investment, to the vast majority of chip companies are trying to carry out independent research and development of the domestic chip industry, China's chip industry is developing rapidly. With the vigorous development of industries such as mobile Internet and Internet of Things, China has become a new continent of independent research and development of Chinese local chips, and the development momentum of research and development and technology is also very good, but its prospects are worth looking forward to.
Domestic chips started very late, almost foreign countries have mature technology before we began to engage in chips, so in the development has been unsatisfactory. Because the design of the signal chain chip is more complex than that of the power management chip, there is still a big gap between the development level of China's chip and that of foreign countries, so we have no core technology and are very dependent on foreign chip imports. From the moment the economic war with the United States began, the United States announced sanctions against Huawei, which also made China's chip development road once again blocked, coupled with the sudden "attack" of the epidemic, the rise of the chip road is more difficult. Only domestic chips in the packaging enterprise market currently has a high share, some in the field of high-end chip device packaging has a great breakthrough. The global environment has led to a lack of chips, and China is even more difficult, the original Huawei sanctions have been a fatal factor, coupled with the tension in the Taiwan Strait, the chip war is in full swing. Although China has introduced relevant policies in this regard, China's new integrated circuit production line has been put into production and the momentum of rapid development, but the most important thing is to continue independent innovation on the basis of not giving up independent research and development, blindly relying on imports is not a long-term solution.
In the future, China's chip industry will continue to maintain a steady development trend and continue to make outstanding contributions to the long-term development of the world's chip industry. China's chip technology, which is constantly growing, will also help the world grasp the course of scientific and technological development, provide more wonderful ideas, and pave the way for global scientific and technological development. The evolution of the industry pattern is expected to make great breakthroughs. The development mode of Chinese chip enterprises is gradually changing from design outsourcing to technology autonomy. With the government's policy support, as well as the development of the chip industry itself, the market competition in the chip industry will be further intensified, so that chip companies stand out in similar products, strengthen the industry position, and achieve the evolution of chip biology.