China will produce 20% of the world’s semiconductor components By 2024

Currently, Chinese manufacturers provide no more than 6% of the world’s volume of silicon chips; but the situation will change over the years. By 2024, their share will grow to 20%; and by the end of the decade, they will control almost a quarter of the world’s production of semiconductor components.

Such forecasts of the Boston Consulting Group specialists are cited by the publication Caixin as presented by the Nikkei Asian Review. According to IC Insights, the turnover of the Chinese market for semiconductor components in 2020 amounted to $ 143.4 billion; while domestically produced only $ 8.3 billion worth of products. Caixin sources say that Huawei Technologies, which develops HiSilicon processors, will sooner or later acquire its own production facilities. The US sanctions against Huawei, which cut off the company’s access to the TSMC and SMIC conveyor, are now hindering the production of processors of this brand on the side.

By 2024, China will produce up to 20% of the world’s semiconductor components

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According to industry sources, a group of Chinese companies have been working on an experimental production line since May last year that will allow 28nm products to be produced without American-origin equipment and technologies. The line will be launched this year, and the lessons learned will be scaled up to reduce dependence on the United States if necessary.

According to the SEMI Association, in the period from 2020 to 2024, 38 enterprises will be put into operation around the world for the processing of silicon wafers with a standard size of 300 mm. More than half of them will be located in the PRC. Such an expansion of capacities will increase the total volume of world production of silicon wafers by 30%; compared to 2019, to 7.2 million pieces per month.

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By 2024, China will have the opportunity to reach the third place in the world; in terms of production of semiconductor components, taking a share of 20%. The country will be second only to Taiwan and South Korea; while Japan (12%) and the United States (10%) will be left behind. Naturally, the authorities of the North American state are not ready to put up with this state of affairs even now; and therefore are developing a set of measures to stimulate the domestic production of semiconductor components.

Former chairman and founder of TSMC, Morris Chang, said it would take China at least five years to catch up with Taiwan and South Korea in lithography technology. American industry officials believe it will take China up to two years to fully self-sufficiency in 40nm production; and up to five years in the case of 28nm technology.

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