China’s semiconductor industry relies heavily on imported high-tech equipment, which the United States, Japan and the Netherlands are using to curb the growth of China’s technological power. At the same time, experts predict that Chinese manufacturers can achieve up to 60% import substitution in less critical areas in the coming years, and this potential is fully supported by demand.
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The resource shares research by UBS Securities analysts who interviewed Chinese manufacturers. South China tomorrow post. Up to 70% of Chinese chipmakers’ device demand is for low-end solutions for etching or cleaning silicon wafers, a segment in which Chinese device manufacturers could well capture up to 60% of the local market in the coming years.
Another problem is the low involvement of Chinese companies in the chip design process. At the same time, local consumers among electronic device manufacturers are expressing a growing desire to buy domestically developed chips. In two years, their number has reached 50% of market participants, with 11% of all Chinese buyers expressing a “much stronger” desire and 39% defining it as “slightly stronger”.
According to analysts at UBS Securities, chips developed by domestic specialists will account for 30% to 50% of purchases in China in the next three years. According to the authors of the forecast, the investment volume of the global semiconductor industry will decrease by 15.1% by the end of this year, however, the Chinese market will perform worse than the world market, as the capacities of local chipmakers will in this regard, the sanctions of the United States and its partners highly limited. At the same time, according to UBS experts, the Chinese market for semiconductor components will recover faster than the global market next year. The sales of the world semiconductor giants will start to grow in the next half of the year, and first the smartphone market will recover, and only then the server segment and the PC market will follow its example.
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